The structure of the joint venture, for example. B, if it is a stand-alone company; Do they already have joint venture partnerships with other companies? Because there are good business and accounting reasons to create a joint venture (JV) with a company with complementary skills and resources, such as distribution channels, technologies or finance. Joint ventures are becoming more common for companies to form strategic alliances. In a joint venture, two or more “parent companies” agree to share capital, technology, human resources, risks and revenues within a new jointly controlled entity. Your business, your partner`s business and your markets change over time. A joint venture can adapt to the new situation, but sooner or later most partnership agreements end. If your joint venture has been created for a particular project, it will end naturally when the project is completed. Under Pakistan`s tax law, the Association of Persons (AOP) is a much broader concept than partnership firms, it includes joint ventures, individuals/companies that come together to create unique business opportunities without creating a business, a common family that owns real estate and earns rent or other business returns. In short, it is included all the business of two or more people, long term short term, with a partnership contract or without, but not a company. The ideal partner in a joint venture is one with the resources, skills and assets that complement yours. The joint venture must work contractually, but there should also be a good adjustment between the cultures of the two organizations. With the unanimous agreement of the Board of Directors and the agreement of the initial inspection division, the joint venture may be terminated before the initial term or if the contract is terminated in advance if the contract cannot be executed due to a case of force majeure or if the joint venture suffers losses for consecutive years and can no longer continue the operation for certain reasons.
If you choose to create a joint venture, you should set the terms in a written agreement. This will help to avoid any misunderstandings as soon as the joint venture is operational. If you transfer assets or employees to the joint venture The “LLP” limited liability partnership is a new corporate structure registered by SECP as a limited company, combining the flexibility of a general partnership with the benefits of limited corporate liability at a low compliance cost.