A joint venture is a business agreement in which parties agrees to develop, for a finite time, a new entity and new assets by contributing equity. They both exercise control over the enterprises 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.
In a joint venture, two or more “parent” companies agreed to share capital, technology, human resources, risks and rewards in a formation of a new entity under shared control.
Astrea legal provides with standard services regarding the legal procedures involved in joint venture like MoU, JV agreements, ancillary agreements, regulatory approvals in case of a joint venture involving a foreign or an NRI and more. Drafting Joint Venture agreements is an important feature which involves keeping in mind various clauses like Force Majeure etc, negotiating a JV through an agreement plays the most important role for the successful formation of a joint venture.