![]() ![]() The duration of the agreement is at the basis of any Joint Venture. Signed by all partners, a contractual Joint Venture is a contract stipulating the basic rules of the partnership, its objectives and its means of implementation. Joint Venture agreements must comply with the general rules of French contract law. No additional specific rules apply to companies created with the aim of establishing a Joint Venture.Īll types of Joint Venture agreements are allowed under French law. Because of the flexibility of the governance provisions applicable to SASs, corporate Joint Ventures are often incorporated as SASs. For corporate Joint Ventures, the applicable rules will depend on the corporate form chosen for the Joint Venture. For contractual Joint Ventures, general contract law will apply. The applicable rules therefore depend on the type of Joint Venture. Hence, no specific legal framework applies to Joint Ventures. Later in this entry we will look at how different structures can be used to organise a Joint Venture between two or more parties. Thus, a Joint Venture does not designate any particular structure under the French law, but refers to a form of association, on a well-defined subject, between two or more companies. The concept has been developed in common law countries, and there is therefore no exact equivalent of it under French law per se. Joint Ventures can be distinct business units (a new business entity may be created) or simply collaboration between businesses. Other agreements may be extremely complex, such as a consortium of major telecom companies, airline or media firms, etc. Joint Ventures may be very informal, such as a handshake. It is similar to a business partnership, with one key difference: a partner ship generally involves an ongoing, long-term business relationship,whereas a Joint Venture is based on a single business transaction.Individuals or companies choose to enter a Joint Venture in order to share strengths,minimize risks,and increase competitive advantages in the market place. A Joint Venture is a voluntary cooperative agreement between two or more organizations, the goal of which is to improve performance by sharing tasks or resources. Though, it’s an Anglo-Saxon invention, France has climbed on the bandwagon and has developed legal tools to facilitate its use. While Joint Venture have existed for several decades, their importance in firms’ strategies has dramatically increased with globalization and the creation of the European market. Inasmuch as the French market is a complete terra incognita for you.Ĭross-border mergers/acquisitions and international joint ventures have entered a golden age in France. We will also help you investigate the solidity of your future French business partners by running a due diligence analysis on each of them until you are fully satisfied. In summary, our goal is to deliver a millimeter-scale bespoke business incubator service to our clients. We will, not only help advise you on the right type of Joint Venture, but will also run reality checks on your business plan. The multidisciplinary and multi-tasking team of Enter France will take a holistic approach of your business desideratum. In any case, Enter France is tooled and ready to accompany you in all of your Joint Undertakings. In general, you must be aware that the complexity of the Joint Venture, rather than its form, will have the biggest impact on the time and expenses required to properly establish it.Įven though a separate entity is never established, some contractual joint ventures may be just as complex as a partnership, and/or corporate Joint Venture due to the inherent nature of the joint undertaking.įor example, strategic alliances often involve shared liabilities, intellectual property, financial and non-financial investments, dispute resolution, the exchange of confidential information as well as exit provisions that can be just as complex, if not more, than Joint Ventures involving the establishment of separate entities.
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