Joint Ventures – A Catalyst for Success in India

Joint Ventures - A Catalyst for Success in India

Joint Ventures – A Catalyst for Success in India

Joint Venture (hereinafter referred to as “JV”) is a type of business entity where two or more parties come together, and pool in their resources to accomplish a specific project. It can take various forms like forming a new entity all together or merely coming into a contractual arrangement for the purpose of a specific project. JVs are highly flexible and take structures according to the objectives and considerations of the parties. The essential characteristics of a JV are as follows – 1. The parties involved in the JV are legally independent, with the exception of the work they do together during their collaboration 2. The parties come together for a specific mutually beneficial goal. 3. Both the parties share ownership of the JV’s assets and liabilities and share in the implementation and execution of the project. 4. The JV is temporary in nature (short term/long term) dissolving once the target is achieved.

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