Joint Venture Agreement

A joint venture (JV) agreement is entered into by a group of persons or companies to do business together or to collaborate on a particular project without losing their individual legal identities. Such an agreement is legally binding and clearly lays down the areas of cooperation and divergence, and makes provisions for profit-sharing and operations. Usually, before entering into such a formal agreement, the parties sign a Memorandum of Understanding (MoU).

Advice on Requirements

We’ll help you find out what you need covered

Iterations

We do two rounds of iterations at no extra cost

Advantages of a Joint Venture Agreement

Low Risk

A JV agreement allows you to do business with another party, while continuing to operate with your individual legal identity. Thus it is considered a low-risk option for sectors in which 100% FDI is allowed. JV agreements have been behind some of the biggest success stories in Indian business, such as Hero Honda, which was a JV between the Japanese Honda and the Indian Hero Motor Corp.

Access New Markets

A JV Agreement allows you to access newer markets and resources, and ensures the sharing of risk, without any of the disadvantages of operating as a single entity.

Step to form a Joint Venture Agreement

• Recognize your option: identify different type of methods that can be used for entering into the joint venture
• Selection and understanding of market
• Determine the necessary resources you can commit like : time money and people
• Selection your partner
• Determination of joint venture strategy
• Negotiation
• Letter of Exchange
• Determine the objective of Joint venture
• Feasibility study
• Agreement in principle
• Joint venture Agreement
• Staged implementation
• Full Operation
• Review
• Expansion