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What Is a Joint Venture (JV)?

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

Requirements for Joint Ventures

The key elements to a joint venture may include (but are not limited to):

  • The number of parties involved
  • The scope in which the JV will operate (geography, product, technology)
  • What and how much each party will contribute to the JV
  • The structure of the JV itself
  • Initial contributions and ownership split of each party
  • The kind of arrangements to be made once the deal is complete
  • How the JV is controlled and managed
  • How the JV will be staffed