If you do not have a joint venture contract, the law may decide on the allocation of risk and liability. The risk is that the law will work in a different way than you have in mind. In Ukraine, most joint ventures operate in the form of a limited liability company as there is no legal company as a joint venture. The protection of the rights of foreign investors is guaranteed by the Law of Ukraine « On Foreign Investment ». In Ukraine, the Joint Undertaking may be set up without the creation of a legal person and within the framework of the Cooperation Agreement  (Dogovir pro spilnu diyalnist); Ukr. Договір про спільну діяльність). Under the Civil Code of Ukraine, CA can be created by two or more parties; The rights and obligations of the parties are governed by the treaty. The cooperation agreement is widespread in Ukraine, especially in the field of oil and gas extraction. Follow these instructions to create your joint venture. Once you have a good partner in mind and have submitted your statement of intent, you may want to consider creating your template for the deal.
Some of the problems with a shareholders` agreement are this: if your agreement contains all of this, it would most likely be an effective agreement. Now let`s move on to the planning phase of your joint venture. The JV contract, which is accompanied by the statutes of the ITA, are the two most fundamental legal documents of the project. The articles reflect many provisions of the Joint Undertaking Treaty. In case of conflict, priority is given to the COMPANY`s document. These documents shall be drawn up at the same time as the feasibility report. There are also additional documents (called « offsets » in the United States) that cover know-how and brand and supply contracts. JVs are not recognized by the IRS, where the JV agreement determines how taxes are paid. One of the most important functions of the joint venture agreement is to explain the nature of the relationship between the joint ventures. As you can see, there are different types of joint ventures you can do, and they depend on your main purpose or goal to create one. As you can see, a joint venture can be beneficial for your business as long as you know everything about it and know how you would make your own deal and get the other party to sign. Before we start designing a template, we`ll look at the important elements that your agreement needs to contain.
A Joint Undertaking Agreement should contain the names of the signatories, the terms and purpose of the agreement, as well as any additional information on the project to be carried out. A joint venture agreement may also include clauses relating to the disclosure of sensitive information, termination and duration of the undertaking. This type of joint venture is usually created when a parent company or a main enterprise enters into an agreement with its branches or small enterprises to transfer resources (such as technology), safeguard their intellectual rights or market their products and services in the national territory. . . .