Was Ist Ein Joint Venture Agreement

Comfort and flexibility are the characteristics of this type of investment. This makes it easier to find cooperation partners and reach an agreement. Some large joint ventures are MillerCoors, Sony Ericsson, Vevo, Hulu, Penske Truck Leasing and Owens-Corning – and in the past Dow Corning. Chinese joint ventures are a mechanism for forced technology transfer. In many cases, technology transfers are effectively required by China`s foreign direct investment (FDI) regime, which discourages important sectors of the economy for foreign firms. To access these sectors, China requires foreign companies to enter into joint ventures with chinese companies that have no connection. Joint ventures are risky forms of business partnerships. The economic and managerial literature has taken into account several factors of conflict and opportunism in joint ventures, in particular the influence of the general control structure[9], the change of ownership and the volatile environment. [10] More broadly, joint ventures have a “dark side” related to potential negative outcomes, unethical behaviour and ill-intentioned organizations.

[11] Most joint ventures are registered, although some, such as in the oil and gas industry, are “unregistered” joint ventures that mimic a business unit. If two or more people have come together to form a temporary partnership to carry out a particular project, such a partnership can also be called a joint venture in which the parties are “joint ventures”. If the joint venture is a separate entity, it pays its own income taxes, depending on the form of the activity – for example. B of a partnership – when it has been created. If it is an unregistered joint venture, all profits must be avoidable by the companies that signed the JV agreement. The parties to one of the companies, EJV, CJV or WFOE, carry out a feasibility study described above. This is a non-binding document – the parties remain free not to pursue the project. The feasibility study must cover the fundamental technical and commercial aspects of the project before the parties can proceed with the formalization of the required legal documentation.

The study should contain details that were previously cited in the feasibility study [citation needed] (submissions from the Chinese partner). A joint venture is a business entity founded by two or more parties, typically characterized by common ownership, common returns and risks, and common governance. Companies typically follow joint ventures for one in four reasons: to open up a new market, especially emerging markets; increase the efficiency of scale by combining facilities and operations; risk participation in the event of larger investments or projects; or to access skills and competencies. [1] Reuer and Leiblein`s work challenged the claim that joint ventures minimize downside risk. [2] Until recently, there were no guidelines on how foreign investment should be managed with respect to foreign investors due to China`s restrictive nature. After Mao Zedong`s death in 1976, initiatives in foreign trade were implemented, and the law applicable to foreign direct investment was clarified in 1979, while the first Sino-foreign investment took place in 2001. [13] The law as a whole has improved since then. If all parties fully trust each other, a joint venture could theoretically be arranged by a simple handshake.

But all companies that opt for a joint venture must define the terms of the business in a signed contract drafted with legal counsel. Investment companies are those established in China through a single foreign-funded enterprise or jointly with Chinese partners making direct investments. It must be incorporated as a limited liability company. .