Thinking of entering into a Joint Venture? Stacks business and commercial lawyers in NSW can provide expert advice about your legal and financial obligations when entering into a particular type of Joint Venture.
Unlike a partnership, where two individuals enter into a long-term business commitment, a joint venture is an agreement based on a particular project. Two or more individuals or businesses may enter into a Joint Venture agreement to undertake a one-off project, with the aim of contributing expenses and benefiting mutually from the profits. Rather than being a continuing arrangement, the Joint Venture finishes up once the goal of the project has been achieved.
Stacks Law Firm has specialist commercial lawyers in NSW who will ensure that your Joint Venture Agreement is properly drafted and that you have carefully considered every aspect of the arrangement before committing to the venture.
Why enter into a Joint Venture?
- The costs associated with starting a new project can be high. By pooling resources, parties entering into the venture are able to get the project up and running
- A Joint Venture means that the legal risks are shared between the parties involved
- A small business may enter into a Joint Venture with a larger, more established company, in order to benefit from their financial backing. The larger company may see some value in the project, or wish to diversify their business
- The Taxation implications may be more beneficial than those associated with other business structures
Issues the Joint Venture Agreement should address
- The way the Joint Venture is to be set up, whether as an ‘Unincorporated’ or an ‘Incorporated’ Joint Venture, the latter involving the setting up of a separate company which owns the joint venture’s assets and in which the parties involved own shares
- The names of the involved parties, the place of business and the Joint Venture’s main purpose
- The financial and work commitments that each party will contribute to the project
- The way that profits and losses will be distributed according to the percentage of interest that each party has in the project
- The obligations and responsibilities of each party
- The way any disputes will be resolved
- What happens in the event that one party wishes to terminate their involvement in the venture
Need advice about entering into a joint venture? Call us today