What is joint venture?

A joint venture is a business venture in which two or more companies combine their resources in order to achieve a specific goal or project.

When two or more people or entities join forces and pool their resources to conduct business activity, a joint venture is formed. A venture is distinct from the people who take part in it. It can be formed by two or more companies or businesses to carry out a specific project and optimize their expertise.

There are numerous reasons for entering into joint ventures, including firm expansion, entry into a foreign market, cost distribution, and so on. The main advantage is that no single person is required to bring all of the capital to launch a new venture.

Did you know?

Joint ventures are not governed by separate laws. Are you planning to convert your joint venture into an LLC to save taxes? Team Nimblefincorp can help you plan your taxes in advance to avoid high tax payments.

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