{"id":15455,"date":"2020-11-02T15:21:18","date_gmt":"2020-11-02T09:51:18","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=15455"},"modified":"2021-03-22T18:28:12","modified_gmt":"2021-03-22T12:58:12","slug":"draft-joint-venture-agreement-between-two-companies","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/","title":{"rendered":"Is it Possible to Draft Joint Venture Agreement Between Two Companies?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The term \u201c<strong>Draft JV Agreement<\/strong>\u201d denotes the format of a legal document wherein two or more business entities associate to do business or commence an economic activity altogether. In other words, Joint Venture is a technical and financial collaboration between the companies for the fulfillment of some projects. <\/p>\n\n\n\n<p>In this blog, we will discuss whether it is possible to Draft JV Agreement between two companies or not.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a335f904b2b0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a335f904b2b0\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Concept_of_Joint_Venture_Agreement\" title=\"Concept of Joint Venture Agreement\">Concept of Joint Venture Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Who_Can_be_Party_to_Joint_Venture_Agreement\" title=\"Who Can be Party to Joint Venture Agreement?\">Who Can be Party to Joint Venture Agreement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Laws_Applicable_to_Joint_Venture_Agreement\" title=\"Laws Applicable to Joint Venture Agreement\">Laws Applicable to Joint Venture Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Basic_Features_of_JV_Agreement\" title=\"Basic Features of JV Agreement\">Basic Features of JV Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Need_for_Joint_Venture_Agreement\" title=\"Need for Joint Venture Agreement\">Need for Joint Venture Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Clauses_in_the_Draft_JV_Agreement\" title=\"Clauses in the Draft JV Agreement\">Clauses in the Draft JV Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Types_of_Joint_Ventures_in_India\" title=\"Types of Joint Ventures in India\">Types of Joint Ventures in India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Equity_Based_Joint_Venture_Agreement\" title=\"Equity Based Joint Venture Agreement\">Equity Based Joint Venture Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Contract_Based_Joint_Venture_Agreement\" title=\"Contract Based Joint Venture Agreement\">Contract Based Joint Venture Agreement<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Factors_to_Consider_While_Drafting_a_Joint_Venture_Agreement\" title=\"Factors to Consider While Drafting a  Joint Venture Agreement\">Factors to Consider While Drafting a  Joint Venture Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Process_to_Draft_Joint_Venture_Agreement\" title=\"Process to Draft Joint Venture  Agreement\">Process to Draft Joint Venture  Agreement<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Choose_the_Right_Partner\" title=\"Choose the Right Partner\">Choose the Right Partner<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Sign_MOU\" title=\"Sign MOU\">Sign MOU<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Consult_Experts\" title=\"Consult Experts\">Consult Experts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Draft_JV_Agreement\" title=\"Draft JV Agreement\">Draft JV Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Name_Your_Joint_Venture_Agreement\" title=\"Name Your  Joint Venture Agreement\">Name Your  Joint Venture Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Register_Company\" title=\"Register Company\">Register Company<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/swaritadvisors.com\/learning\/draft-joint-venture-agreement-between-two-companies\/#Sample_Format_of_Joint_Venture_Agreement\" title=\"Sample Format of Joint Venture Agreement\">Sample Format of Joint Venture Agreement<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Joint_Venture_Agreement\"><\/span>Concept of Joint Venture Agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term \u201cJoint Venture\nAgreement\u201d signifies a legal document that acts as a basis for the entities\nthat decides to undertake economic activities by combining their operations. <\/p>\n\n\n\n<p>Further, in a JV Agreement, the parties agree to run a business with common intention but without incorporating a new business entity. Also, the companies can build a new entity by contributing the equity, revenue, control, expenses of the entity in the proportion of their capital contribution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Can_be_Party_to_Joint_Venture_Agreement\"><\/span>Who Can be Party to Joint Venture Agreement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The ones eligible to become a party to the JV Agreement are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Who-Can-be-Party-to-Joint-Venture-Agreement-1-1024x768.png\" alt=\"Who party JV agreement\" class=\"wp-image-15466\" width=\"466\" height=\"349\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Who-Can-be-Party-to-Joint-Venture-Agreement-1-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Who-Can-be-Party-to-Joint-Venture-Agreement-1-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Who-Can-be-Party-to-Joint-Venture-Agreement-1-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Who-Can-be-Party-to-Joint-Venture-Agreement-1.png 1200w\" sizes=\"(max-width: 466px) 100vw, 466px\" \/><\/figure><\/div>\n\n\n\n<ol><li>Company<\/li><li>Individual<\/li><li>Partnership Firm<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Laws_Applicable_to_Joint_Venture_Agreement\"><\/span>Laws Applicable to Joint Venture Agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The laws applicable to the Draft JV Agreement are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Laws-Applicable-to-Joint-Venture-Agreement-1-1024x768.png\" alt=\"JV Agreement laws applicable\" class=\"wp-image-15464\" width=\"519\" height=\"389\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Laws-Applicable-to-Joint-Venture-Agreement-1-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Laws-Applicable-to-Joint-Venture-Agreement-1-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Laws-Applicable-to-Joint-Venture-Agreement-1-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Laws-Applicable-to-Joint-Venture-Agreement-1.png 1200w\" sizes=\"(max-width: 519px) 100vw, 519px\" \/><\/figure><\/div>\n\n\n\n<ol><li>Indian Contracts Act 1872<sup><a href=\"http:\/\/legislative.gov.in\/sites\/default\/files\/A1872-09.pdf\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/li><li>Copyrights Act 1957<\/li><li>Trademarks Act 1999<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Basic_Features_of_JV_Agreement\"><\/span>Basic Features of JV Agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The basic features of the Joint Ventures Agreement are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Basic-Features-of-JV-Agreement-1024x768.png\" alt=\"JV Agreement features\" class=\"wp-image-15460\" width=\"509\" height=\"382\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Basic-Features-of-JV-Agreement-1024x768.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Basic-Features-of-JV-Agreement-300x225.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Basic-Features-of-JV-Agreement-768x576.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Basic-Features-of-JV-Agreement.png 1200w\" sizes=\"(max-width: 509px) 100vw, 509px\" \/><\/figure><\/div>\n\n\n\n<ol><li>Partners contribute money, efforts, skills, knowledge, property, and other assets towards a common undertaking.<\/li><li>It includes the right of management and mutual control over the property used in the enterprise.<\/li><li>Provides the right to share profit and loss in a property.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Need_for_Joint_Venture_Agreement\"><\/span>Need for Joint Venture Agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whenever, companies lack in some aspects, such as knowledge, technology, assets or market reach, they tend to get involved in joint ventures with other business entities or company as they are unable to achieve its objective on its own. <\/p>\n\n\n\n<p>Further, the collaboration through JV agreement allows the first party to have easy access to the capital and resources of the other party that too, without any expenditure for obtaining it. In India, the Joint Ventures are normally formed with one non-resident company\/ individual, who collaborate to incorporate an Indian Public or <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\">Private Limited Company<\/a><\/strong> with the mutual contribution in the share capital. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Clauses_in_the_Draft_JV_Agreement\"><\/span>Clauses in the Draft JV Agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The clauses in the draft JV Agreement\nare as follows:<\/p>\n\n\n\n<ol><li>Object of the <strong><a href=\"https:\/\/swaritadvisors.com\/joint-venture-agreement\" class=\"text-primary\">Joint Venture Agreement<\/a><\/strong>.<\/li><li>Scope of the JV Agreement.<\/li><li>Clause of Equity Participation of both the parties if the joint venture is an equity based agreement formed by the local and foreign investors and is an agreement to the future issue of capital as well.<\/li><li>Financial Arrangement Clause between both the parties.<\/li><li>Composition of the Management and Board Agreements.<\/li><li>Specific Obligations.<\/li><li>Provisions for the Distribution of Profits and Losses.<\/li><li>Transferability of Shares in some situations.<\/li><li>Termination Clause for the exit of the parties.<\/li><li>Restrictive Covenants for both company and participants.<\/li><li>Appointment of CEO (Chief Executive Officer)\/MD (Managing Director).<\/li><li>Clause of Anti-Compete.<\/li><li>Confidentiality Clause.<\/li><li>Indemnity Clause wherein both the parties involved may indemnify each other against the event of negligence, and violation of the provisions of the JV agreement.<\/li><li>Duration of the Agreement.<\/li><li>Dispute Resolution Mechanism.<\/li><li>Applicable law.<\/li><li>Force Majeure, etc.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Joint_Ventures_in_India\"><\/span>Types of Joint Ventures in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The different types of Joint Ventures prevalent in India are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Equity_Based_Joint_Venture_Agreement\"><\/span>Equity Based Joint Venture Agreement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In this type of Joint\nVenture Agreement, the parties involved decide to pool in their investments and\nother resources to establish a new business entity.<\/p>\n\n\n\n<p>For example, a Foreign Company can start a business in India by signing a JV Agreement with some Indian Business Partner. By this means, the said Indian Business Partner will acquire both technology and financial assistance from its Foreign-based partner.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Contract_Based_Joint_Venture_Agreement\"><\/span>Contract Based Joint Venture Agreement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In this type of JV\nAgreement, there is no need to create any new and separate legal entity. The\nparties involved just enter into the agreement to work on a project.<\/p>\n\n\n\n<p>For Example, in a\nfranchise operation, the owner and the franchisee enters into a JV Agreement\nfor only one project, while they both continue to carry out their individual\nwork.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors_to_Consider_While_Drafting_a_Joint_Venture_Agreement\"><\/span>Factors to Consider While Drafting a  Joint Venture Agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The factors to consider while drafting a\nJV Agreement are as follows:<\/p>\n\n\n\n<ol><li>In depth research regarding the activities and operations of other businesses.<\/li><li>Conduct SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis of the business.<\/li><li>Compare the Method of Working of other businesses.<\/li><li>Analysis Potential of the Joint Venture Partners.<\/li><li>Must consider the opinions given by the employees.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_to_Draft_Joint_Venture_Agreement\"><\/span>Process to Draft Joint Venture  Agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The steps involved in the process to draft JV Agreement are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Process-to-Draft-JV-Agreement-1-1024x512.png\" alt=\"JV Agreement Draft process\" class=\"wp-image-15468\" width=\"555\" height=\"278\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Process-to-Draft-JV-Agreement-1-1024x512.png 1024w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Process-to-Draft-JV-Agreement-1-300x150.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Process-to-Draft-JV-Agreement-1-768x384.png 768w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/Process-to-Draft-JV-Agreement-1.png 1200w\" sizes=\"(max-width: 555px) 100vw, 555px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choose_the_Right_Partner\"><\/span>Choose the Right Partner<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The first and foremost step towards the process to draft JV Agreement is to choose the right partner. Further, while deciding the partner, the applicant must completely analyze whether the business culture and operation of the proposed partner fits with its organisation or not.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sign_MOU\"><\/span>Sign MOU<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After deciding the right partner, the applicant needs to sign a Memorandum of Understanding or Letter of Intent with the proposed partner. The <a href=\"https:\/\/swaritadvisors.com\/memorandum-of-understanding\" class=\"text-primary\"><strong>Memorandum of Understanding<\/strong><\/a> will lay down the basis of the JV or Joint Venture Agreement. Also, it serves as a basis of intention for the parties entering into the agreement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consult_Experts\"><\/span>Consult Experts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now, in the next step, the applicant must consult expert professionals for the drafting of both MOU and JV Agreement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Draft_JV_Agreement\"><\/span>Draft JV Agreement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The draft JV\nAgreement must include the details as follows:<\/p>\n\n\n\n<ol><li>Type of Firm<\/li><li>Sources of Funding<\/li><li>Stakes of Shareholders<\/li><li>Contribution made in the Company.<\/li><li>Contribution in the Intangible Assets.<\/li><li>Details on Exit Strategy<\/li><li>Dissolution Clause, etc.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Name_Your_Joint_Venture_Agreement\"><\/span>Name Your  Joint Venture Agreement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In this step, the applicant needs to give a name for the draft Joint Venture Agreement format.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Register_Company\"><\/span>Register Company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The last and the final step after the drafting of the Joint Venture Agreement is to register the said Private or <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/public-limited-company-registration\">Public Limited Company<\/a><\/strong> and the AOA (Articles of Association).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, we can conclude by stating that, <strong>YES it is possible<\/strong> to draft a Joint Venture Agreement or JV Agreement between two companies. Also, a JV agreement offers a variety of perks and benefits to the businesses involved as parties in the agreement. <\/p>\n\n\n\n<p>Further, joint ventures\nprovide companies and entities with a platform to join hands and pool their\nfinances, knowledge, ideas, skills, and resources to develop a particular\nproject. <\/p>\n\n\n\n<p>However, all this is possible only if there is a well-drafted JV Agreement that governs the parties involved in the agreement. That means any discrepancy in the joint venture agreement may lead to the termination or dissolution of the JV agreement.<\/p>\n\n\n\n<p>For any other details, contact us &#8211; Swarit Advisors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sample_Format_of_Joint_Venture_Agreement\"><\/span>Sample Format of Joint Venture Agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/11\/JOINT-VENTURE-AGREEMENT.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">JOINT-VENTURE-AGREEMENT<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-recent-trends-in-international-business-environment\/\">What are the Recent Trends in International Business Environment?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The term \u201cDraft JV Agreement\u201d denotes the format of a legal document wherein two or more business entities associate to do business or commence an economic activity altogether. In other words, Joint Venture is a technical and financial collaboration between the companies for the fulfillment of some projects. In this blog, we will discuss whether [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":15457,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[628,60,675],"tags":[846,847],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/15455"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=15455"}],"version-history":[{"count":29,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/15455\/revisions"}],"predecessor-version":[{"id":18311,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/15455\/revisions\/18311"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/15457"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=15455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=15455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=15455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}