Joint Venture means an arrangement between two or more persons to work together for the common interest for a particular purpose or particular project. To enter into a Joint Venture one needs to enter into an agreement or contract where each clauses relating to rights and obligations of parties are mentioned. One should consider following points while entering into such contracts.
- Structure of the business
- Main object of the joint venture
- Investments
- Management
- Sharing of profit and losses
- Use of Intellectual Properties
- Disputes
- Miscellaneous clauses
Hence a Private Limited company can enter into a joint venture with other entity but cannot be converted into a Joint Venture.
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