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Joint Venture is a business preparation in which more than two organizations or parties share the ownership, expense, return of investments, profit, governance, etc. To gain a positive synergy from their competitors, various organizations expand either by infusing more capital or by the medium of Joint Ventures with organizations.

Joint Ventures can be with a company of same industry or can be of some other industry, but with a combination of both, they will generate a competitive advantage over other players in the market.

Each entity in the joint venture, which could be individuals, groups of individuals, companies, or corporations, keeps its separate legal status. A joint venture may be set up by a contract that outlines the resources, such as money, properties, and other assets, each entity will bring to the venture

A joint venture might involve two companies with different areas of expertise working together to create a new product or provide a new service. Or a company looking to break into a new geographical market might form a joint venture with a company that is based in or has an established presence in the country or region.