Joint Venture

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.

Key Factors:

• • • 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.