Joint Venture refers to a legal entity that is formed between two or more parties to undertake an economic activity together.
In the joint venture, the parties agree to create, for a definite period, a new entity and new assets by contributing equity, then share in the revenues, expenses, assets and control over the enterprise.
Joint Venture partnership are also driven by business, taxation, and political objectives.
Already established distribution/marketing set up of the partner.
Available financial resources of the partner.
Already established contacts of the partners that help ease the process of setting up operations.
Getting entry into sectors which don’t allow exclusive ownership by investors.