Partnership and Joint Venture are colloquial terms used in any legal structure. Corporations, partnerships, limited liability companies (LLCs), and other business entities can all be used to form a Joint Venture typically for production or for research, they can also be formed for a continuing purpose. In this article, we will concentrate on drafting a Joint Venture Agreement.

Why should you consider a Joint Venture Agreement?

Joint Ventures companies are very successful in every industry – from space to automobiles to beverages and apparel.

Whether you're an early start-up company or a large business, a promises certain distinct advantages for each of the parties. Here are the top five features of a typical joint venture agreement –

1.Minimising costs: Partnering with an existing business can provide valuable links saves time, energy, and costs but may also act as an easy exit if the venture does not work out.

2.Cultural alignments in a new market: For every Indian company, a joint venture with a local company would help them adjust to a new country faster.

3.Overcoming legal hurdles: Joint Ventures in India do not indulge especially with a foreign entity to invest in certain sectors or industries.

In India, joint ventures are especially preferred as the law may not allow a foreign entity to invest in certain sectors or industries. For example, in the defence sector – foreign investment is allowed only up to 49%. A stand-alone foreign company may not be eligible for certain tenders, and thus a joint venture with an Indian entity may be the only way to circumvent such provisions.

4.Sharing risks and rewards In a joint venture, there is sharing of potential benefits and the risks are distributed. Each company is motivated to work hard and utilise the shared resources to the fullest.

5.Sharing assets, intellectual property, and human resources: Partnering with the business chain such as with a manufacturer or entering in a joint-venture with a distribution company can help reap the expertise of each other's key areas and trained human resources.

How can we help you?

Online Legal India™ can help you draft your Joint Venture Agreement. We have 10+ years of CA/CS who be dedicated guide you accordingly and in a very short time, you would have your Joint Venture Agreement.

You can also go through our other legal services as sending a Legal Notice, drafting a Divorce Notice we also deal with Company Registration, ITR Filing, Consumer Compliant and many more.