Joint Venture (Consortium Company)
A Joint Venture is a type of company where two or more partners agree by contract to share the profits or losses of one or more commercial enterprises, which will be carried on in the name of one of the partners. Contract of Joint Ventures may be written or oral and not required to be notarized. Third parties can recourse only to the partners with whom they deal. However, should the Joint Venture is disclosed to the third parties, all the partners are liable to the third parties. Existence of Joint Venture may be proved by any method of proof.
Consortium Joint Venture Company is in fact a clandestine company confined to the relationship between the partners for the execution of specific projects in the name of one partner (e.g. owner of the license while the other partner undertakes the management of the company).Usually no special license will be issued in the name of the company, but the license belonging to the original partner will be sufficient for the execution of the project with the collaboration of the other partner who will participate in running the company.
Though the name of the company shall not be entered in the Commercial Register and not be declared to the public, yet it operates as per proper agreement legally binding to the concerned partners and may be attested before the Notary Public. BVI Offshore Company.
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