A joint venture (JV) agreement is a contract between a group of persons or companies to do business together or to collaborate for a particular project without losing their individual legal identities. This type of agreement is legally binding and clearly lays down the areas of cooperation and divergenceand makes provisions for profit-sharing and operations. A Memorandum of Understanding (MoU) will be signed generally before entering into this legally binding agreement.
With the help of a JV agreement, you can get involve in business with another partywhile you can continue to work with your individual legal identity. Therefore, a joint venture is considered as a low-risk option for sectors in which 100% FDI is allowed.
With the help of a JV agreement, you will have access to newer markets and avenues. It will make sure the sharing of risk without any of the disadvantages of operating as a single entity.