![]() What are the advantages of creating a joint venture? What steps must be taken to carry out a successful Joint Venture contract?Īs our commercial law lawyers point out, first of all, a specific project must be established, a contract must be signed with clauses that help protect the collaboration and the partners, the exact contribution of capital by each of the parties must be defined, joint activities must be designed, a common roadmap must be specified, the investment budget must be established and designed, the duration must be controlled, a group of human resources must be established, and finally the administrative processes and operational processes must be defined. In other words, they carry out activities in common. Contractual or Non-Equity Joint Ventures (CJV): Companies collaborate without creating a new company. The latter has its own legal personality with respect to the participating companies. The agreement involves the creation of a new company. Equity Joint Ventures (EJV), also known as corporate. The companies have different activities. The companies are in different economic phases. The companies participate in the same economic phase. These characteristics are made available to all contractors. What is added is the contribution of the characteristics of each company. Strategic alliances: In these joint venture models, no capital contribution is required. The purpose is to obtain greater profits than could be achieved individually, such as the incorporation of new markets and economies of scale. Co-investment: This is characterized by the contribution of money or goods made by each of the companies. Concentrative type: The companies participating in the joint venture decide to centralize their elements or business cores in the resulting new company. The objective is to create a company that will be able to develop certain activities over time. Investment (BOT: Build/Operate/Transfer). ![]() Their purpose is to develop a project with a time limitation. There are many different types of joint ventures: The Joint Venture is a joint goal that will represent benefits for the companies that collaborate, either by sharing the work team, costs, investments, control and responsibility, etc. ![]() ![]() Recently, there have been many recurrent alliances between different startups.īusiness Lawyers recommend companies to apply a Joint Venture contract to work in the same direction and respect the rules. The purpose will be to obtain the highest possible profits from this union or association. The joint venture is applied when two or more companies take the decision to enter a new market or develop a business during a certain period of time. A joint venture is a temporary strategic association (short, medium or long term) of organization, a group or alliance of persons or groups of companies that maintain their individuality and legal independence but act together under the same direction and rules, to carry out a certain commercial operation, where investments, control, responsibilities, personnel, risks, expenses and business benefits are distributed.
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