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

Why Enterslice

  • 1Service Handled By 70+ Qualified Chartered Accountants And Company Secretaries.
  • 2100% Accuracy Guaranteed As Entire Process Managed By CA & CS.
  • 3Our Partner Of Firm Will Be In Direct Touch With You.
  • 4We Offer All Services For Startup From Registration Like Company, Vat And Legal And Assisting Startup In Fundraising.
  • 5We Are Among Top 25 Accounting And Tax Consulting Firms In India.
  • 6We Are Among Top 100 Innovative Fin-Tech Companies By The Red Herring Asia.

Enterslice working process

How We Can Help You

© 2017 ENTERSLICE ITES PRIVATE LIMITED . All rights reserved.