International trade

sachin (Querist) 26 September 2012 This query is : Resolved
Dear Friends,

An Indian LPG Cylinder manufacturing company proposes to enter into a business relationship with an Iranian Company.

There are two options:

Option 1: Export Transaction

1. To supply semi finished cylinders
to the Iranian Company.
2. To provide technology and know-how for conversion into finished product.
3. To generate income by way of export.

Option 2: Joint Venture
1. To enter into a joint venture with an Iranian Company.
2. 75% of the proposed investment to be funded through bank loans.
3. The balance 25% to be infused equally by both the JV Partners.

what would be the pros and cons and the legal implications as regards to doing business under both the aforesaid options.

Regards,

Sachin

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Guest (Expert) 26 September 2012
Dear Sachin,

Better take help of some foreign trade expert dealing with cases of clients of Export Processong Zone in your area. I suppose your exporter company can well afford hiring of some expert in the export import business.

R.K Nanda (Expert) 26 September 2012
no more to add.

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