Entering into a joint venture is a major decision. Not only are the resources, knowledge and technical expertise of two or more entities shared but also the risks and rewards. There are various reasons companies and individuals might want to form joint ventures which include:
- business expansion;
- development of new products and services;
- property investment and development; or
- access to established markets and distribution channels, particularly overseas.
Joint ventures can be structured in different ways. These include establishing a joint venture company, establishing a partnership or avoiding any sort of joint venture entity and simply agreeing to work together on a particular project.
Tax issues will need to be considered in relation to the set up of the venture, the operation of the joint venture and the eventual termination of the venture.
We assist clients in planning and documenting joint ventures which not only create structures which meet their technical, operational, financial, accounting, regulatory, legal and tax requirements but also encapsulate their underlying commercial objectives.
In 2013, Peter Stevens was invited to participate in a joint venture roundtable discussiom. Organiser, Corproate Livewire spoke to ten experts from around the world to analyse the benefits and challenges of engaging in a Joint Venture. To read the commentary from this discussion, click roundtable