To analyze new markets, develop new products/benefits, two or more individuals can start a joint venture. Joint Venture need not be registered in the Commercial Register or create a separate juristic entity. The existence of the JV contract must remain undisclosed to third parties.
Joint Venture Agreement:-
Joint Venture Agreement must contain:
- Its objectives and the terms of the joint venture between the members.
- The rights and liabilities of the partners
- The distribution of profits & losses
- The method of company management.
- Does not have its own name
- No third party can raise a claim against its existence.
- A third party can take recourse only against that member of the venture.
- To accept a third party into the venture’s contract the venture have to switch to other Partnership mode.