Why Joint Ventures?
Joint ventures (JVs) are an increasingly popular vehicle for India-Australia business collaboration. For Indian companies, JVs offer a lower-risk entry into the Australian market by partnering with local expertise and networks. For Australian companies, JVs provide access to India's massive market and talent pool.
In 2025-2026, we've seen a 45% increase in JV formations in the India-Australia corridor, driven by the ECTA, expanding bilateral trade, and growing mutual investment flows.
Common JV Structures
The most common structures for India-Australia JVs include:
Incorporated JV (Company)
An Australian-incorporated company with shared ownership is the most common structure. It provides limited liability, a clear governance framework through the Corporations Act, and relative simplicity for ongoing compliance.
Contractual JV (Unincorporated)
Parties collaborate under a contractual framework without forming a separate entity. This structure is typically used for specific projects with defined timelines and deliverables.
Partnership
Less common for cross-border ventures due to joint and several liability, but used in professional services contexts where regulatory requirements favor partnership structures.
Governance & Decision-Making
Robust governance is essential for JV success. Key elements of a well-drafted JV agreement include board composition and voting rights, reserved matters requiring unanimous or supermajority consent, day-to-day operational management responsibilities, financial reporting and audit rights, and IP ownership and licensing arrangements.
Tax Considerations
Cross-border JV tax structuring must consider the India-Australia Double Taxation Agreement, withholding tax obligations on dividends and royalties, transfer pricing requirements, and GST implications of intra-JV transactions. Careful upfront structuring can significantly reduce the aggregate tax burden on JV operations.
Exit Mechanisms & Dispute Resolution
No JV lasts forever, and well-drafted exit provisions are essential. Common mechanisms include put/call options, tag-along and drag-along rights, shotgun (Russian roulette) clauses, and winding-up provisions. For dispute resolution, we recommend a tiered approach: negotiation, then mediation, then arbitration (typically under ACICA or ICC rules).
Collins Quarters International structures cross-border JVs across the India-Australia and Malaysia-Australia corridors. Contact our Cross-Border team for advisory support.
