Joint ventures and business partnerships

When you set up a joint venture, you should put the terms in a written agreement. This helps prevent misunderstandings once the venture begins.

What goes into a joint venture agreement?

The agreement should clearly set out how the joint venture will be formed and how each partner will work together. It should cover:

• the structure of the venture, for example, if it will be a separate business
• the name and aims of the joint venture
• how long it will last and any options to extend it
• what each partner will contribute, such as money, assets or property
• when and how partners can withdraw their investment
• any assets or staff transferred to the venture
• who owns any intellectual property created
• how the venture will be managed and controlled
• how profits will be shared
• how losses and liabilities will be handled
• how any disputes between the partners will be resolved
• an exit strategy for ending a joint venture

You may also need to agree on other issues, such as:

• confidentiality - to protect any commercial secrets you disclose 
• insurance - against loss where reasonable and especially if it is industry standard
• indemnification for both parties in the venture

Multi-party joint venture agreements

Multi-party joint ventures can be complex, especially when dealing with governance, decision-making, ownership and exit arrangements. Whether you are setting up a joint venture between two businesses or several partners, it is important to get independent legal advice before making any final decisions.

You can download a template for a joint venture agreement (PDF, 17K) to help you get started.