Many businesses enter into joint ventures or strategic alliances when undertaking new business activities and projects.
This can be an important tool that provides businesses with access to greater resources, markets and know-how that would otherwise be out of their reach. Strategic alliances can help a business to expand, diversify and move into sectors supported by one or more business partners. If operating cross-border over different jurisdictions, having business partners can be essential to enable the venture to cope with the ever-changing market conditions and share the potential benefits and risks accordingly to their respective roles. At the outset, any uncertainty around the project or the other partners can be concerning. However, the joint venture can be structured so that the risks and liabilities are ring-fenced from your existing business.
Joint Venture Structure
The structure of the joint venture is key. Typically, the structure is either based around a new corporate vehicle or group structure with each party holding an interest, or alternatively conducted through commercial contracts between existing entities. The structure can be designed to meet both the technical and operational requirements of the joint venture, to address and distinguish where liabilities are borne between the parties, whilst also ensuring that the collaboration is tax efficient.
Talk to Tollers
Whether you are considering a partial or fully integrated collaboration, Tollers provides expert help at every stage of the joint venture process to ensure your intentions are clearly set out and fully catered for. We are familiar with working alongside financial and tax advisors to establish a structure which meets the overall aims and intentions of our client. If you would like to discuss a joint venture in further detail, Talk to Tollers. Please contact our Corporate Law Team on 01908 306948 or make an online enquiry.