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A joint venture provides companies with the opportunity to work together to deliver key objectives that would be difficult for either of them to achieve as a single entity. When entered into strategically, this form of collaboration usually results in increased profits for both parties.
Further, this type of partnership means any risk is spread across the two organisations. This means that it’s often a safer way to develop the most innovative projects and ideas.
At Anderson Strathern, we’re here to help you make sure that the structure and entity that you and your potential partner organisation decide on is the right choice for your needs and commercial objectives. If you’re considering entering into a joint business venture, we’ll take the time to discuss your immediate and future objectives, which will enable us to identify the right path for you to realise your desired outcomes.
Our team can work alongside you, negotiating and drafting all of the necessary agreements and documentation to ensure that you have a solid legal foundation from which your business can progress.
There are multiple options available for those setting up a joint venture. Let us help you determine the best fit for your organisation’s needs. The options we consider with you might include:
Our experience and client base across the Scottish business sector gives us unrivalled experience in delivering personal and carefully-judged advice. We have previously worked with a range of businesses of varying sizes and structures, meaning we will be able to provide carefully tailored advice, no matter your circumstances.
To discuss your requirements with a member of our expert commercial law team, please get in touch today.
Contact us on 0131 270 7700, visit our offices in Edinburgh, Glasgow, East Lothian or Shetland, or fill in our enquiry form at the bottom of the page to request a call back.
Put simply, a joint venture is a collaborative business arrangement between two or more parties who agree to work with one another to achieve a shared business goal.
A joint venture agreement can be comprised of individuals, a group of individuals, companies or corporations. Depending on who is involved and what the overarching goal is, a joint venture could take the form of a wide range of collaborative business approaches with varying levels of integration.
Typically, joint ventures take the form of a limited liability or limited partnership company. In some instances, they can also be purely contractual, where the obligations of the joint venture parties are strictly determined by the terms of a contract.
Each party in a joint venture may contribute assets, while sharing ownership, risk, returns, profits and expenses.
With a limited liability partnership, business owners are protected from personal responsibility for debts and liabilities. Each member of a limited liability partnership can be a person or company known as a ‘corporate member’, and while each member pays tax on their share of profits, they are not personally liable for any debts the business cannot pay.
A limited partnership must have at least one ‘general partner’ and one ‘limited partner’. General and limited partners have different responsibilities and levels of liability for any debts the business cannot pay.
In common with limited partnerships registered in the rest of the UK, general partners in Scottish limited partnerships are responsible for the management and are liable for debts and specific obligations. Limited partners take no role in management or decision making and have limited liability – restricted to the value of their capital contribution.
A contractual joint venture is simply an agreement where two or more parties come together for a specific business project, signing a contract that outlines the terms under which they will work together.
Our specialist joint venture solicitors will closely work with you to help determine whether a joint venture is the best course of action for you and anyone you wish to enter into an agreement with. From the outset, we can advise on what you may stand to benefit from and whether there are any apparent risks that could jeopardise your general commercial goals and objectives.
If a joint venture is advisable, we can also advise on which type of agreement is best suited to your circumstances and whether any additional measures need to be considered before moving on to setting up the agreement.
It may not come as a surprise to learn that the process of setting up a joint venture is a( highly complex and )challenging process, with plenty of potential pitfalls that need to be carefully considered. Our commercial law experts can help you to determine the best available options for structuring your agreement, especially if it means that you’ll be making significant changes to your existing business model.
Whatever type of joint venture you decide on, we will strive to ensure your agreement has a watertight legal framework and various safeguards in place. This will be backed up by clear documentation and legal agreements which set out how the agreement will function, both in the short term and the long term.
Part of this will include advising on how your joint venture will be set up, how it will be run, how profits will be shared between the relevant parties and what level of liability you will have if things, unfortunately, turn sour.
If future disagreements arise, or you are already in a joint venture that has taken a turn for the worse, we can enlist the support of our expert commercial litigation team, who can advise on the best way to resolve matters efficiently and effectively.
Our team of dedicated corporate law specialists in Scotland have substantial experience in supporting a wide range of clients, using our wealth of combined expertise to advise on all matters associated with joint ventures.
Our team comprises of members who have been recognised for their skills and expertise in the independent legal directories the Legal 500 and Chambers & Partners and who hold various professional memberships.
We also have various other specialities in the corporate sphere, including mergers and acquisitions, private equity, restructuring, venture capital and employee ownership trusts. To find out more about our corporate law expertise, please click here.
To discuss your requirements with a member of our expert commercial law team, please get in touch today.
Contact us on 0131 270 7700, visit our offices in Edinburgh, Glasgow, East Lothian or Shetland, or fill in our enquiry form at the bottom of the page to request a call back.
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