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Joint ventures

joint venture  is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. The venture can be for one specific project only, or a continuing business relationship. This is in contrast to a strategic alliance, which involves no equity stake by the participants, and is a much less rigid arrangement.

The phrase generally refers to the purpose of the entity and not to a type of entity. Therefore, a joint venture may be a corporation, limited liability company,partnership or other legal structure, depending on a number of considerations such as tax and tort liability. For the foreign investor coming to Spain a Joint Venture will normally involve entering in some sort of relationship with a local partner. Not playing in your home turf makes retaining a trusted lawyer a crucial step for your success.