Joint venture

A joint venture is a form of collaboration between two or more undertakings that pool their resources, knowledge and expertise for a specific project or objective. This may result in the incorporation of a new entity, such as a private limited company, or consist of a purely contractual arrangement without the creation of a new legal entity.

It is relevant where the parties individually lack sufficient capacity, for example in the context of international expansion, complex infrastructure projects or innovation. It offers advantages such as risk sharing and access to new markets, but requires clear agreements on governance, decision-making and exit mechanisms to prevent disputes.

In practice, joint ventures are frequently used in sectors such as real estate, energy and technology. Lawyers advise on the drafting of the agreements to protect the parties’ interests and ensure compliance.