International Joint Venture Agreements - What is kosher and what is not?

For decades, the tailoring trade secret, business enterprises in the global economy at length together to provide an international model. 10 years ago, the ITC and the International Trade Center conducted a global survey on trade in contracts. Responses from TPO or Trade Promotion Organizations were initially relatively small, but later had satisfactory results. The dilemma is not the ideal model for international joint venture agreements and the implacable diverse backgrounds of the InternationalLawyers had come to an end.

In 2002, agreed to some 55 specialists from 45 countries, all of legal cultures, a few models based on international joint-venture agreements have. Interestingly, they have agreed to the international business community to focus on helping small business enterprises or SMEs, emerging in small economies. In general, it offers two choices, that is - short term activity for a single project or a long-term business relationship between the partners forvarious projects.

Both differ in goals and objectives. The first can be a creation of a new company, the second, the inclusion of two or more companies without the need to create a new society. To say it more concrete, these are as follows:

1. Joint venture agreement - this model intends to create a new company in a particular country. In this variation, the model enables collection of two or more companies and lead a joint activity, a statutoryInstruments such as ordinances, statutes and shareholder's agreement.

2. Contractual Joint Venture Contract - this model does not require the creation of a new society. Thus, a new legal entity is not created. This is true for industries such as transportation, hotel and tourism and the exploration and development of natural resources.

These models are pretty much the important needs of small and large business enterprises. This includes the initial and additional contributionsthe parties, the bureaucracy, a legal department for the joint venture, liabilities of partners (internal and external), sharing of resources, profits, potential risks and lose a deadlock resolution to any possible conflict, exclusion of a partner, dispute resolution, acquisition , transfer and loss of partnership status and the termination of the contract of the joint venture agreement.

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