What is JOINT VENTURE

MEANING OF JOINT VENTURE-

In the modern world there are number of ways to expand your  business in any country. Joint venture is the one of the way of expand your  business in other  country .

Joint means  where two or more organizations join together in a cooperative effort to further their business goals. The joint venture is one of the most common and effective means of conducting business internationally.

A key to developing joint venture agreements is to determine goals and objectives in advance and ensure that the interests are reflected in the agreement.

PROCESS- 

  • Firstly joint venture parties enter in to agreement.

  • Joint venture agreement forms the basis of the understanding between and among the parties.

  • Organizations enter into joint ventures in good faith but closely scrutinize the joint venture documents if anything goes awry.

  • Joint venture parties sign the memorandum of understanding or letter of intent. Before the sign the joint venture agreement parties should thoroughly discuss terms of the agreement to avoid any misunderstanding at a later stage.

  • Capability of the collaborator and the requirements of the party are clearly indicated.

  • Specify if the product shall be manufactured/sold on exclusive or non-exclusive basis.

  • Quality control and trademarks to be used are also specified.

  • Details regarding specification and quality of the product to be manufactured are given.

  • The terms of agreement of joint venture compliance all laws which is applicable on joint venture.

“THIS ABOVE LIST IS EXCLUSIVE”