FEATURES OF JOINT VENTURE

A joint venture is a partnership through which two or more firm or entity create a separate entity to carry out a particular economic activity in which each partner takes an active role in decision making. Besides, the requirement that the joint venture must have a contractual basis, there are certain additional requisites for the successful existences of a joint ventures. Its existence, however, depends on the facts and circumstances of each particular case.

STEPS TO FORM A JOINT VENTURE

Before entering into a joint venture agreement, the parties should go to the following process:

i) Recognize your options: identify different methods that can be used for entering into the joint venture

ii) Selection and understanding of market

iii) Determine the necessary resources you can commit like; time money and people;

iv) Selection of partner

v) Determination of Joint Venture Strategy

vi) Negotiation

vii) Letter of Exchange

viii) Determine the objective of the joint venture

ix) Feasibility Study

x) Agreement in Principle

xi) Joint Venture Agreement

xii) Staged implementation

xiii) Full Operation

xiv) Review

xv) Expansion