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Joint Venture Agreements (JV)

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Bright Ideas Global Group Plc


0116 3667 900

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Joint Venture Agreements

As your business grows, you may enter into joint venture partnerships with other business. Our JV lawyers will help protect you while giving your business the ability to flourish.

A Joint Venture is where two or more separate businesses get together for a joint project or strategic alliance. There are three main ways a JV takes place:

  1. JV Company is created with each party holding shares
  2. A Limited liability partnership with each party being a member
  3. A purely contractual arrangement

Our joint venture solicitors will help you decide on the best approach that works for the JV and to protect you. Every time Steven strives to provide:

  • Plain English Advice
  • Time – to understand your situation and all that you’re faced with
  • Results – getting the best possible result for you
  • Value – fixed fees for your certainty where possible
  • Convenience – meetings by phone, video call or in-person at a time to suit you. 

A limited liability company is the most likely and most usual way of a Joint Venture taking place.

As a separate legal entity the joint venture company (JVC) can:
  • Own and deal in assets.
  • Sue and be sued.
  • Contract in its own right.

The most significant advantage of a company is perceived to be the ability of participants to limit their liability in respect of liabilities and losses of the joint venture business. However, unless the JVC is creditworthy in its own right, it is unlikely that the shareholders will be able to avoid having to support the joint venture through the provision of guarantees or other assurances to third parties.

Therefore, when we talk about a Joint Venture Agreement, what we probably mean is: 

  • formation of a new JV company
  • JV articles of association
  • a joint venture shareholders agreement 

A Limited Liability Partnership is common for individuals to enter into JV arrangements, such as professional partnerships. 

Like a limited company, an LLP is a separate legal entity and can:
  • Own and deal in assets.
  • Sue and be sued.
  • Contract in its own right.

However, while a member is not liable to third parties for the LLP liabilities, an individual could still potentially be liable in negligence. 

There are downsides to LLPs. The biggest one is the inability to transfer shareholdings (as there are no shares) which often restricts corporate partners. 

So an LLP is an option, but more usually for individuals.

The simplest form for a joint venture is an arrangement under which the participants agree to associate as independent contractors, rather than as shareholders in a company or partners in a legal partnership. This type of agreement is often referred to as a consortium agreement, a collaboration agreement or a co-operation agreement.

The rights and duties of the participants as between themselves and third parties, and the duration of their legal relationship, will be detailed in a written agreement.

Each party retains its own legal identity, and the JV does not have its own legal entity. That means that one party will usually be the lead or host, signing and entering into contracts with third parties, and the agreement will set out what each party’s liabilities to the other will be.

JV contracts or collaboration agreements are the simplest JV to set up, but they can lack transparency, create tax issues and over complicate things where the JV needs assets of its own to operate.

Steven works on a fixed fee basis, ensuring certainty on costs for you. 

To allow us to do that, we always suggest we hold an initial ‘discovery call’ to understand better your requirements.

Generally speaking, the price of setting up a JV will range from £1,500 plus vat up to as much as £10,000 plus vat depending on the structure and complexity.

So get in touch today for a free no obligation call with Steven your Joint Venture Agreement Solicitor. 

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Next Steps for your Joint Venture Agreement?

Perhaps you’re not sure which of theJoint Venture Agreement options to put in place, just need advice, or perhaps you have everything agreed and now need the legal paperwork drafting. Either way, get in touch. 

Steven’s typical client is probably like you – a business owner who knows their business well but needs a hand with legal stuff. I’m here to be your trusted advisor.

Call me for a free no obligation chat on 0116 3667 900, email me or click the buttons on the right of the page to use another method like WhatsApp or Messenger.