A Joint Venture (JV) is essentially a strategic partnership or alliance generally between two companies or firms (active in the same or different business fields), established for a specified finite period of time, and for obtaining certain commercial advantages by both the parties, in the highly competitive world of businesses. Some examples of the joint venture companies are Sony Ericsson, Dow Corning, MillerCoors, etc.
Today, the joint venture companies are considered as being a very elegant and convenient means for product or business diversification, business expansion to international markets, and making foreign direct investment in the desired foreign country. Businesses in almost all economic sectors are now utilizing this joint venture partnership for these purposes, keeping in mind the ever-growing business competition at national and international levels.
In ours this very informative and constructive webpage, we are providing all vital and significant information about the joint venture company, and our superb and swift legal services for supporting joint ventures in countries worldwide, inseparably including India. Our law firm located in Delhi (India) is now one of the fast progressing, amply popular, and internationally reputed full-service law firms of India.
Joint Venture Companies AdvantagesIn a joint venture company, the assets, resources, and some specific business expertise, are invested by both the partners in the agreed proportions, and therefore, all revenues and profits are also distributed between them accordingly. The most striking and impressive joint venture advantages are the following:
- The joint venture partnership gives rich and bright opportunity for business expansion to larger, often international markets.
- A joint venture facilitates access to and utilization of the financial and technological resources of the co-venturer. Thus, access to new and more efficient technologies concerned with the production of products is easily obtainable.
- Uses of the well-established distribution networks, specialized workforce, and infrastructure of the co-venturer, are possible for increased production capacity, better quality of products, and more profits.
- Making a joint venture company with a company active in different business field, helps in diversification of one's products or services.
- The risks, responsibilities, and losses in business, are shared by both the co-venturers.