Joint Venture

Joint Venture

Joint Venture

Joint venture

A joint venture is a business agreement in which parties agree to develop a new entity and new assets by contributing equity. They exercise control over the entreprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.

On the other hand, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are "co-venturers".

It is similar to a business partnership with two differences:

The first, a partnership involves an ongoing, long-term business relationship, whereas an equity-based Joint Venture comprises a single business activity.

Second, all the partners have to agree to dissolve the partnership whereas an end time has to lapse before it comes to an end.

Reasons for forming a Joint Venture are:

reducing entry risks by using the local partner's assets

inadequate knowledge of local institutional or legal environment

access to local borrowing powers

in strategic sectors, the county's laws may not permit foreign nationals to operate alone

access to local resources through participation of national partner

influence of local partners on government officials or compulsory requisite

access by one partner to foreign technology or expertise

incoming foreign exchange and investment.

The Cooperative Joint Ventures may have a limited structure or unlimited , therefore, there are two versions. The limited liability version is similar to the Enterprises Joint Ventures in status of permissions. However, there are no minimum limits on the foreign partner which allows him to be a minority shareholder.

The other format of the Cooperative Joint Venture is similar to a partnership where the parties jointly incur unlimited liability for the debts of the enterprise with no separate legal person being created.

In the era of the Internet, finding opportunities for exploiting an idea with communication. There are also the blogging networks as well the social networking sites and search engines. There are also other venues to find a JV partner such as seminars, exhibitions, directories, websites such as (http://www.ranosolutions.co.uk/pushthatbutton ) and the plain newspaper advertising of opportunities.

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