When two companies want to combine their strengths to tackle a project or bring a new product to market, a Joint Venture Agreement sets the foundation for that collaboration.

The agreement ensures that both sides are aligned from the start, with clear rules about contributions, ownership, decision-making, and risk.

Whether it’s tech innovation, product development, or market expansion, this agreement helps businesses work together without giving up independence.

What is a Joint Venture Agreement?

A Joint Venture Agreement is a formal contract between two or more businesses (called “the parties”) who agree to work together on a specific project or commercial activity.

Unlike a merger, each company stays separate but creates a new entity, typically a limited liability company, to carry out the joint venture.

This agreement sets out the purpose of the venture, what each party will contribute, how profits and losses will be shared, and how decisions will be made.

Why Use a Joint Venture Agreement?

Partnering with another business can bring big rewards—but also big risks. A Joint Venture Agreement ensures the relationship is balanced, fair, and legally secure. It helps to:

• Clarify roles and contributions, such as money, expertise, or intellectual property.
• Define ownership and profit-sharing, to avoid confusion later.
• Set governance rules, including board structure and voting rights.
• Protect confidential information shared during the partnership.
• Reduce legal risks by defining responsibilities and indemnities.

This is especially valuable in industries like technology, real estate, energy, pharmaceuticals, and any project involving high investment or intellectual property.

How to Create a Joint Venture Agreement with Bind

With Bind, you can create a clear, professional Joint Venture Agreement in minutes. Just enter details about the parties, their contributions, and the structure of the venture. Bind generates a complete document, which you can edit yourself or with AI assistance.

Once finalised, you can sign it digitally and store it securely—all in one place. It's ideal for any UK-based or international business venture.

What Should a Joint Venture Agreement Include?

A solid Joint Venture Agreement typically includes:

• Parties
• Purpose and objectives
• Formation of the joint venture entity, e.g. new company details, location, and structure.
• Contributions by each party
• Ownership interests
• Profit and loss allocation
• Management structure
• Term and termination
• Indemnity and liability
• Confidentiality
• Dispute resolution
• Governing law

When and How a Joint Venture is Used

Joint ventures are most commonly formed when two or more businesses want to combine their resources for a specific goal—such as launching a new product, entering a new market, or collaborating on R&D—without permanently merging or giving up control of their own companies.

Example Scenario

Elite Solutions Inc. is a software company based in New York with a strong portfolio of patented artificial intelligence tools. They specialise in back-end machine learning infrastructure but have limited international distribution.

Futurr Inc., based in London, is a tech company with deep ties to global enterprise clients and a strong sales and distribution team—but less in-house AI expertise.

Both companies want to create a new product that combines cutting-edge AI with user-friendly commercial applications. They agree to form a joint venture, creating a new company—Innovative AI Solutions LTD—to co-develop and market the product globally.

Here’s how the joint venture works in practice:

• Purpose: To build, sell, and support a new AI-powered platform.
• Formation: A new UK company is set up, with clearly defined roles and a board equally appointed by both partners.
• Contributions: Elite contributes intellectual property. Futurr contributes cash and access to clients.
• Ownership: The companies agree on a 40/60 split based on their respective contributions.
• Control: Daily operations are run by a jointly appointed CEO, and big decisions are made by the board.

This kind of structure allows both companies to share risk, pool expertise, and profit together, while still keeping their own businesses independent.

Common Questions About Joint Venture Agreements

Is a Joint Venture a separate legal entity?
Yes, in most cases. The agreement often creates a new company—usually a limited liability company—owned by the joint venture partners.

Can the parties exit the joint venture?
Yes. The agreement should include exit terms, such as selling shares, transferring ownership, or dissolving the entity after the project ends.

What happens to intellectual property?
Ownership of existing and newly developed IP must be clearly defined in the agreement. Parties may license their technology to the joint venture or co-own any resulting inventions.

Can joint ventures operate internationally?
Absolutely. In fact, joint ventures are common in international trade, especially where local laws or markets require a domestic partner.

What’s the difference between a joint venture and a partnership?
A joint venture is usually for a specific project and limited time, while a partnership often implies a longer-term and broader collaboration.

Joint Venture Agreement – free template

This Joint Venture Agreement (the “Agreement”) is entered into by and between:

(1)  [Company Name], a company incorporated in [Country], with Company Number [Number], and having its registered office at [Address] (“First Party”); and  
(2)  [Company Name], a company incorporated in [Country], with Company Number [Number], and having its registered office at [Address] (“Second Party”).

The Parties wish to jointly [Specify].

1. Formation of Joint Venture
The Parties will form a new company: [Company name].
Principal Office:

2. Contributions
- First Party:
- Second Party:

3. Ownership
- First Party: 
- Second Party:

4. Profits and Losses
[Specify, e.g. shared in proportion to ownership.]

5. Management
A Board of [Number] Directors. First Party will appoint [number] and Second Party will appoint [Number]. CEO will be appointed by mutual agreement.

6. Term and Termination
Initial term: [Number] years. May be extended by mutual agreement.  
Termination: With [Number] days’ notice or upon breach.

7. Indemnification
Each Party shall indemnify the other from any losses caused by their actions or omissions.

8. Confidentiality
Parties will protect all shared confidential information and not use it outside this Agreement.

9. Dispute Resolution
Disputes will be resolved through negotiation, then arbitration under international rules if needed.

10. General Provisions
- Amendments require signatures  
- No assignment without consent  
- [Country] law applies  
- Jurisdiction: Courts of [City], [Country]

Signatures
This Agreement has been signed digitally.

Create a Joint Venture Agreement in minutes with Bind

Bind is the easiest way to create up-to-date contracts and business agreements. Use Bind to generate a custom Joint Venture Agreement tailored to your project—then edit, sign, and manage it online from start to finish.