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Joint Venture Company

A joint venture company is a business entity whereby at least two parties go into business together for a common mission. The joint venture can take various corporate forms. Therefore, the joint venture may consist of a partnership, limited liability company or corporation, depending upon the particular needs and desires of the parties entering the joint venture. The joint venture should always be based upon a written legal agreement which can either be included in any corporate formation documentation, or as a free standing agreement. Pursuant to the agreement, the parties are free to make any type of arrangement as to the control of the business, the distribution of profits and expenses, provided that the arrangement does not violate any laws or run afoul of any statutory limitations on corporate form. In addition, a joint venture company can focus its efforts on one goal, or the company can include various goals.

Fast Facts

  • Joint venture brokers may be involved in the formation of a joint venture company
  • China law mandates that non-China based entities form joint ventures with China based firms before being able to enter the marketplace

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