Joint Venture Agreements
Form a joint venture (JV) with two or more parties, pool resources, and accomplish tasks faster.

Overview

A Joint Venture (JV) agreement is filed by a group of people or companies to partner over a venture or a project, without affecting their own legal status. The JV Agreement binds both parties, defines the scope of relations, and facilitates provisions, such as money, properties, and other assets, each entity will bring to the venture. The contract also establishes how the venture will be managed and how control of it—and profits and losses from it—will be divided. A joint venture might involve two companies with different areas of expertise working together to create a new product or provide a new service. Or a company looking to break into a new geographical market might form a joint venture with a company that is based in or has an established presence in the country or region.

Documents Required

Participating entities Documents:

  1. Identity Proof or Certificate of Incorporation
  2. Intellectual properties each party is committing

Joint Venture details:

  1. Business activities
  2. Registered and Operational locations
  3. Negotiation terms

How is it done?

Authorisation letter is signed to get attorney on board
Discussions and Negotiation are held in presence of attorney 
Joint Ventures terms are defined in a signed contract, consisting of
  • The parties to the agreement
  • Management structure and members
  • Shareholding pattern of parties
  • The distributive share—the percentage of profit or loss—allocated to each party
  • Transfer of shares, 
  • The bank account the JV will use
  • A list of resources
  • The employees and/or independent contractors who will work on the venture
  • Non-compete and Confidentiality
  • How administrative records and financial statements will be made
  • Dispute Resolution and Jurisdictions
The Joint Venture relationship begins
FAQs
How a Joint Venture Pays Taxes?

If the joint venture is its own separate business entity, it will pay its own income taxes according to the form of business—such as a partnership—it was created as. If it's an unincorporated joint venture, any profits must be accounted for by the entities who signed the JV agreement.

Is joint venture a legal entity in India?

Yes, a 'joint venture' is recognised as a distinct legal concept in India. As per the provisions of the Companies Act 2013, a joint venture is defined as a joint arrangement, whereby the parties that have joint control of the arrangement have the rights to its net assets.

How Joint Venture open more opportunities?

A Joint Venture Agreement allows you to access new markets and resources and ensures that the risk is shared, without any of the disadvantages involved in operating as a single entity.

How do you split profits in a joint venture?

You can decide to pay each partner a base salary and then split any remaining profits equally, or assign a percentage based on the time and resources each person contributes to the company. Keep in mind that a 50-50 partnership legally requires one partner to receive the approval of the other.

Is it necessary to form new business entity in case of JV?

The joint venture may or may not result in the formation of a new business entity. A joint venture is a cooperate arrangement that is intended to benefit two or more separate business entities.

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