Joint Venture

A joint venture (JV or J-V) is a legal entity formed between two or more parties to undertake an economic activity together. The JV parties agree to create, for a finite time, a new entity and new assets by contributing equity. They then share in the revenues, expenses and assets and "control" of the enterprise.There are other types of companies such as JV limited by guarantee, JVs limited by guarantee with partners holding shares.

In European law, the term 'joint-venture' is an elusive legal concept, better defined under the rules of company law. In France, the term 'joint venture' is variously translated as 'association d'entreprises', 'entreprise conjointe', 'co-entreprise' and 'entreprise commune'. But generally, societe anonyme covers' foreign collaborations. In Germany,'joint venture' is better represented as a 'combination of companies' (Konzern)[1]

In other hands, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular work, object, it is termed as joint venture. The persons come together are called "co-ventures".

The venture can be for one specific project only - when the JV is referred more correctly as a consortium (as the building of the Channel Tunnel) - or a continuing business relationship. The consortium JV (also known as a cooperative agreement) is formed where one party seeks technological expertise or technical service arrangements, franchise and brand use agreements, management contracts, rental agreements, for ‘‘one-time’’ contracts. The JV is dissolved when that goal is reached.

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