How does a Joint Venture work

[foschinni]

I'd like to register a new JV with a business partner. Please help with general JV info; must the JV be registered as a legal businesses, how long does it take, how does it operate etc.
Many thanks

 

[MKFrost]

It can take on many forms. You can have a partner who only backs you financially i.e. takes no part in operations, others want a share and participate, others want controlling share and participate or appoint somebody to look after their share....

There are no 'fixed' structure and or setup for a joint venture. Will depend on the needs of both or all partners.

 

[DJ...]

It all depends on your circumstances. You'll need to provide a little more detail. Typically JVs are considered to be partnerships in the eyes of the law, but the rest of your questions will depend on the reasons for the JV's existence in the first place, as there are various tests (recognition characteristics) for a JV to be officially recognised, and be able to operate under certain circumstances. It wouldn't be responsible for anyone to advise you on the specifics of JVs as they differ per project or association, so precedent is not really an applicable tool in these cases.

And at the end of the day you need a lawyer to draw up the JV agreements. You should not leave it to yourself unless you have a very good background in commercial law, which I'm quite sure you don't.

Also, why a JV? Sounds like you're getting into business with another person, not another company. Or is that simply reading too much into your original post?

 

[foschinni]

It all depends on your circumstances. You'll need to provide a little more detail. Typically JVs are considered to be partnerships in the eyes of the law, but the rest of your questions will depend on the reasons for the JV's existence in the first place, as there are various tests (recognition characteristics) for a JV to be officially recognised, and be able to operate under certain circumstances. It wouldn't be responsible for anyone to advise you on the specifics of JVs as they differ per project or association, so precedent is not really an applicable tool in these cases.

And at the end of the day you need a lawyer to draw up the JV agreements. You should not leave it to yourself unless you have a very good background in commercial law, which I'm quite sure you don't.

Also, why a JV? Sounds like you're getting into business with another person, not another company. Or is that simply reading too much into your original post?

Thanks for the feedback. The reason why I'd like to set up the JV is that I'd like to provide industrial products to clients. The problem is, I don't have the capital to set up warehousing etc. I have a friend who is already in the business, so I thought a JV would be doable. Does that make sense?

 

[DJ...]

That does make sense, and is a perfectly good reason to enter into a JV. But I can't give you the advice that you need. You'll get some advice that you want from the forum - it won't all be good advice though, and a JV is not something worth the risk to you. Get a lawyer to structure it for you.

What you can do is begin working on the HOA which will go back and forth numerous times and can be the basis with which your lawyer can work from. But structuring a JV is far more complicated than simply finding a template and changing particulars. If you want to do this properly, you will need to consult a decent attorney to work on your behalf in this respect. It's costly, but will save you far more in the long-run than what you're going to have to fork out. Both companies should have legal representation or at least take legal opinion on the matter.

This is far too broad a topic for anyone to give you the specific advice that you need...

 

[foschinni]

Thanks DJ
I can't afford a lawyer right now, I'll have to leverage on whatever contracting experience I have, and consult with friends as well.

 

[DJ...]

I charge less than a lawyer and can help. On the basis that you can afford my rates as well.

PM me with some more details and I'll see if I can provide some assistance or point you in the right direction of people who can...

 

[IzZzy]

I charge less than a lawyer and can help. On the basis that you can afford my rates as well.

PM me with some more details and I'll see if I can provide some assistance or point you in the right direction of people who can...

I am a corporate commercial attorney and this is my bread and butter, but I probably charge more than DJ...

Without a formal brief, I would still be willing to point you in the right direction, just PM specific queries.

 

[DJ...]

Oi, stop stealing my clients ffs...

 

[IzZzy]

Oi, stop stealing my clients ffs...

Haha Also my bread and butter are exactly the people who couldn't afford a lawyer at the time of starting their business, but once it has grown, the disputes roll in like spring tide.

 

[DJ...]

Dibs...

You lose...