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What Agreement Entails The Creation Of A Third-Party Legal Entity Group Of Answer Choices

Joint ventures may include jointly controlled undertakings, jointly controlled assets or jointly controlled transactions. The jointly controlled undertaking may be a legal person with registered legal personality. On the other hand, jointly controlled assets and jointly controlled operations are not legally united and are subject to the agreement signed between the partners. In addition, the amending law introduced a concept of “significant beneficial ownership” of shares and provides for additional disclosure requirements (record keeping, filings, etc.) for the disclosure of these significant beneficial owners. A significant beneficial owner of an enterprise is described as a natural person acting alone or jointly or by the undertaking of one or more persons or trusts, including a trust and a person outside India, by another entity: in addition, the recent Amending Act defines a joint venture as “a common agreement in which the parties: which have common control of the agreement, have rights to the net assets of the agreement`. Consequently, the partners of the joint venture may be jointly and severally liable to third parties for the debt of the joint venture, the rights of employees or even tax, whereas the terms of the agreement between the parties to a joint venture would probably determine the amount of the tax debt. In India, there is no group tax system and each company must tax its own taxable income. A joint venture is required to pay a total income tax of 30% (plus surtaxes and levies) calculated in accordance with the provisions of the Weaving Act. However, if the tax due by the company on total income is less than 18.5% of its accounting profit, an “alternative minimum tax” of 18.5% (plus applicable supplements and cess) of the accounting profit is due. A stock-based joint venture is a joint venture in which all parties to the joint venture are jointly involved by forming a separate business unit, which can take the form of a corporation, LLP, or trust, among other things. The concept is also recognized in the Anti-Money Laundering Act 2002 and its relevant regulations (PMLA).

The PMLA requires the identification of customers and their beneficial owners by any banking company, financial institution and other intermediaries. The joint venture entity may be required to disclose final effective ownership upon such identification. In addition, several regulatory authorities (e.g. B the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI)) require intermediaries, banks and financial institutions to request details on the final details of their customers` effective ownership while conducting know-your-customer checks….

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