Joint Venture Companies

Joint Venture Company: A joint venture company hereinafter referred as JV is an entity which is created when two are more parties comes together for a specific or general economic activity. The parties have their shares on the profit and expenses of the entity and controls it as per the agreement executed between them pertaining to the same. The venture can be created for a single specific entity or it may be a continuing business till it is dissolved as per the rules and regulations concerning the same. JV is very common among the oil and industry and is often cooperation's between local and foreign company. However as per the survey conducted on the progress of JV, it is found that JV failed to show considerable results in low developing countries and when it is formed with government organizations. Furthermore, JVs have failed miserably under high demand and rapid change in science and technology.

Joint Venture Companies Definition

A joint venture is a contractual business undertaking between two or more parties. It is more or less similar to partnership firm. The main difference between Joint Venture and Partnership firm is that, JV is created mainly for a specific economic entity and ceases to exist after the completion of the same whereas partnership firm is created for a considerably longer period of time. JVs are mainly formed to share profits, minimize market risks and to decrease workload pertaining to the activity to be undertaken.

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