If reducing the likelihood of a cultural conflict is the «main transition» to a joint venture agreement, then ancillary contracts of relationship, trust and respect should make it even more viable. The ideal partner in a joint venture is one with the resources, skills and assets that complement yours. The joint venture must work contractually, but there should also be a good adjustment between the cultures of the two organizations. You can benefit from the review of your own business. Be realistic about your strengths and weaknesses – think about a SWOT analysis (strengths, weaknesses, opportunities and threats) to see if both companies are right. You will almost certainly want to find a joint venture partner that complements the strengths and weaknesses of your own business. A joint enterprise agreement should contain the names of the signatories, the terms and purpose of the agreement, as well as any additional information on the project implemented. A joint venture agreement could also include clauses regarding the disclosure of sensitive information, termination and the duration of the business. A joint venture itself is not an autonomous legal entity and is not recognized as such by the regulatory authorities. Joint ventures are managed by private or legal entities. A consortium is another type of trade agreement between two or more companies. The main difference between a consortium and a joint venture is that a consortium is generally seen as a more flexible agreement between companies that remain significantly separate.
Companies work together as part of a project. B for example, construction companies that build a skyscraper – but don`t have much influence on each other. A joint venture may lead to the creation of a separate new business entity, or it may operate exclusively on the basis of an agreement between existing businesses without forming a new legal entity. The latter is designated as a non-corporatist joint venture. who is responsible for the banking relationship (if any), who pays contractors and service providers, etc. This should have been dealt with above in the «Responsibility» section, but if you haven`t indicated how much equity each partner will use, this is another place to add that. In addition, you must indicate in which audit account the partner is the money. Allocation and payment is one of the most important areas that must be covered by these joint venture agreements! The first question that the parties must ask themselves before the development of a joint enterprise agreement is: «How do we want the joint venture to be structured?» It is worth taking legal advice to identify your best option. How you create your joint venture affects how you operate it and how profits are shared and taxed. It also affects your liability if the company fails. They need a clear legal agreement defining how the joint venture works and how revenues are shared.
On the page of this manual, you will learn how to create a joint enterprise agreement. A joint venture is a cooperation agreement between two or more companies, which is often in the process of creating a new activity.