When such agreements are concluded between companies, it is essential to keep in writing all the agreements, clauses and conditions that make up the Community enterprise contract. Although the initial investment of the two companies is very good for cooperation, it is important to negotiate all aspects related to control, costs, contributions, administration and management of the joint venture, so as not to have any problems in the future. We should not confuse joint ventures with business mergers, because in the first case, companies retain their legal independence, simply that all types of investments, costs, work teams are shared to get something that can be beneficial to both parties. An example of joint ventures or joint ventures is a partnership that is carried out between different organizations for commercial purposes. These strategic alliances are implemented on a temporary basis and with specific objectives, ranging from reducing costs for businesses to internationalizing and entering new markets. The duration of these enterprises varies greatly, as it can be short-, medium or long-term. There are joint venture cases for specific and other actions in which the company has been working side by side for years. If you are interested in joint ventures, you will find here a model of joint venture contract that allows them to formalize the agreement between the two parties. Please note that joint ventures are governed by the European Union, the Trade Code and the Civil Code.
If you have any doubts about this contract or the creation of joint ventures, don`t hesitate to ask for advice on all the information you need. Today, many companies or organizations come together to achieve more ambitious goals. It is about conducting trade cooperation to achieve goals that we have not been able to achieve on our own. This is why the joint venture has established itself as one of the major options for creating synergies between companies. While different companies share objectives and knowledge, we need to highlight the contribution of each of the parties as well as the quantitude of the benefits. With regard to the main points that we must include in the joint venture agreement, we must include the following: If this document is complete, it can be signed by all parties and each party can store a copy for its recordings. Where possible, the original can be kept with joint venture assets. The main reasons why two or more individuals or corporations may choose to form a joint venture are very different, although it is necessary to mention the following: strengthening their competitive position, avoiding price fights, doubling projects, obtaining a market position that is not possible individually for internal reasons (reducing uncertainties and weaknesses) or for strategic reasons. This document allows companies to choose one of two options, with or without starting a business, by changing the clauses according to the chosen option.
This contract defines all the agreements necessary for the implementation and management of the joint venture and on the most important aspects (subject capital and actions, evaluation of contributions, organization and management, decision-making, dispute resolution, etc.).