Joint Venture Agreement

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  • Joint Venture Agreement.
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What is Joint Venture Agreement?

A joint venture agreement is an arrangement where two companies develop a separate entity to their mutual benefit. It is regarded as sharing of resources, capital, personnel, facilities. Thus a joint venture agreement is entered by a group of individuals/companies to do business mutually by collaborating for a particular project that shall be legally binding. Usually a memorandum of understanding (MoU) is entered before entering into joint venture agreement.

Advantages of joint venture

Expertise: This agreement helps in achieving expertise to the company it may not have or were not willing to invest in acquiring itself.

A joint venture also provides a company with a way to exit from a secondary business or to enter a new business with less of a financial commitment if it were to do this on its own.

No loss to existing entity: With a joint venture agreement, the entity still remains independent and separate from the venture.

Profit at low cost: joint venture is created to complete a certain task or a project. So for small scale enterprises, joint venture is a good solution as it is profitable and the cost is low.

Procedure

  • A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of filing a legal notice by you.
  • Once the objectives of the same are clear, the lawyer shall draft a sample legal notice accordingly.
  • The draft legal notice shall be sent to you, for your review.
  • Once you approve it, it shall be served to the other party.
  • The whole process takes around 3-4 working days.

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