Joint Venture

What is a Joint Venture?

A Joint Venture is a strategic alliance between two or more parties where they agree to pool their resources for the purpose of achieving a specific task, which can be a new project or any business activity. Each participant in a joint venture is responsible for profits, losses, and costs associated with it. However, the venture remains a separate entity from the participants' other business interests.

Short Description: A business arrangement where two or more parties collaborate for a specific project or business activity, sharing profits and losses.

• Shared Resources: Parties bring together their resources, skills, and knowledge.
• Shared Risks and Costs: Each party shares the risks and costs, which reduces individual financial burdens.
• Intended for Specific Purpose: Typically created for finite projects with a determined duration.

Joint ventures can be formed by any legal structure and are common in industries like technology, engineering, and healthcare, where collaborative projects can yield substantial mutual benefits.