A joint venture is a business agreement. It is a business agreement where 2 or more parties agree to put together their resources To complete a specific task which can be a new project or any kind of business activity. In this business arrangement, each party to the agreement is responsible for any profit gained, losses incurred, and costs associated with it. The joint venture is in itself a single entity and is separated from the participates other business interests. The joint venture is used to partner up with local businesses and enter a foreign market.

a company forms joint ventures so that they can take advantage of the combined sources of both the companies to achieve the specific goal or task of the venture. The reason is leveraged resources, as one company might be well established in one area while another company might be well established in another particular area and they can benefit from each other's expertise.

Cost savings is another reason why companies enter into a joint venture as it can leverage their production at a lower per-unit cost than they would separately. Cost savings can include sharing advertising and Labour costs as well as technology advances.

Combine expertise is another reason for 2 companies to form a joint venture add both of them may have unique backgrounds, expertise, and fill set. A joint venture will help both companies and they can benefit from each other’s talent and expertise within their company.

Limited co-operation, Separate joint venture business, and business partnership are different types of joint ventures and one can set up a joint venture depending on what type of business they're trying to achieve.

When a company agrees to collaborate with another business in a limited and specific way and agree to a contract setting out terms and condition on how this cooperation will work, they are said to have entered in a limited cooperation joint venture.

When a company sets up a separate joint venture business that is possibly a new company and handles a particular contract, they are said to have entered into a separate joint venture business. This is a very flexible option and the partners each own share in the company and decides on how they should manage it.

When a company forms a business partnership or a limited liability partnership Or merges 2 businesses they are said to have entered into a business partnership joint venture.

The documents that are required for creating a joint venture our memorandum of undertaking or a letter of intent, JV a or an in case of a company, partnership deed or LLP deed in case of partnership or LLP, cooperation agreement are a strategic alliance in case of a strategic alliance, And some other agreement’s such as technology transfer agreements.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.