Document background
The MoU for Joint Venture is a crucial preliminary document used in Indian business transactions when two or more parties intend to form a joint business venture. This document serves as a foundation for the detailed joint venture agreement that follows, capturing the essential commercial understanding between the parties while maintaining legal flexibility. It typically precedes more detailed documentation and due diligence processes, setting out key terms such as ownership structure, management rights, and operational framework. The document must comply with Indian corporate laws, including the Companies Act 2013, and when foreign entities are involved, it needs to address Foreign Exchange Management Act (FEMA) requirements. Used across various industries, from manufacturing to technology, this MoU helps parties align their expectations and objectives before committing to a full-fledged joint venture agreement.
