Basics Of Joint Venture Agreement


A joint venture (JV) is not a partnership. This term is reserved for a single unit formed by two or more people. Joint ventures are added to two or more different entities to a new one, which may or may not be a partnership. The joint venture created by this agreement (the “joint venture”) will operate under the name [JOINT VENTURE NAME] and have its address registered under [ADDRESS]. The joint venture is considered in all respects as a joint venture between the contracting parties and, under no circumstances, this agreement can be construed as ensuring a partnership or other loyalty relationship between the parties. This agreement includes the entire written or oral agreement between the parties and the agreement between the contracting parties, which replace all prior written or written communications, representations, agreements or agreements between the parties with respect to the purpose of this agreement. This agreement cannot be amended in any way, except by a written amendment made by each party. You can benefit from the review of your own business. Be realistic about your strengths and weaknesses – think about a SWOT analysis (strengths, weaknesses, opportunities and threats) to see if both companies are right. You will almost certainly want to find a joint venture partner that complements the strengths and weaknesses of your own business. It is important to get advice from a professional consultant to ensure that your joint venture is created in the best way possible to avoid taxes and maximize profits. RARELY A DAY PASSES without a new joint venture being announced in the world`s leading financial publications. Last year, Apple, Bank of China, Google, ExxonMobil, IBM, Microsoft, NestlĂ©, Novartis, Samsung, Sinopec, Tesla, Toyota and many other leading companies created at least one new joint venture – and in some cases several.

The continued volume of activity is not surprising, as joint ventures allow companies to access skills, access new or restricted markets, share equity risks, pool capital and ensure sectoral and sectoral synergies. But the great advantage of joint ventures – the freedom to creatively combine the contributions of two or more players – makes these agreements inherently difficult to negotiate and structure in relation to, for example, acquisitions or licensing agreements.