Joint venture or called as JV is a partnership between two or more parties who agree to collect the sources to meet the same goals. In a business field, it can be interpreted as a join partnership between two partners or more to collect the capital and establishing a new company. Even though it is unlike other companies such as LLC or representative office, JV can be brought to the legal structure by applying the procedures on registration of a company in Indonesia.
Required Steps for Joint Venture
- Register business license
It becomes an important requirement to legalize the company so that it can be officially operated without any law interruption or problem. This license is differentiated between local and foreign company. All the registration can be done through BKPM.
- Certificate of approval
Certificate of approval can refer to many sector and institutions. It can be related to the export-import license of the company in trading, housing, plantation, and many more.
- Name internal supervisor
The identity of the supervisor in the company should be attached as the requirements. Sometimes it includes the photograph, identification card, passport, and others.
In Joint venture, each part has the responsibility and right for loss, profit, and arranging the management of the work. A joint venture is possible to bring the big companies up and invite them to work together. Therefore, it is crucial to be aware of the agreement between the parties. What kind of their rights, duty, goal, and every detail of the joint venture.
The point should be noted
- The total of the parties. It may look simple, but it is important to remember that joint venture is started from the people who have the same vision.
- The field of the joint venture. Limiting the area will help the focus of the company.
- The structure of JV. When JV is pointed out to have legal structure, it is necessary to think over from the start.
- The management of JV. When friends working together, sometimes the mistake cannot be avoided. Then, to prevent this condition, arranging the management even before the deal is fair enough to see the prospect of the profit.
- The way the rights, obligations, and contribution should be arranged well. Misunderstanding is right in the corner, so try to stay away from it by doing this prevention.
Benefits of Joint Venture
The joint venture can run well if the cooperation between the parties can be maintained. Every party can gain the mutual benefits. For instance, between the foreigner and an Indonesian who want to work together in creative industry. Both parties need each other, and the foreigner can widen the product or goods from its country, so does the Indonesian.
Moreover, the knowledge on how to see the market distribution will enhance the sensitiveness of them. If this partnership grows faster, the widen border will be easy to reach.
The term joint venture may seem unfamiliar in Indonesia, but it is easy to start with friends. If you need to think more, going to the company registration and asking for advice is an excellent idea especially if you want change JV into legal structure. You only need to browse at www.company-registration.co.id, a professional company specialized in the registration of a company in Indonesia.