How Do I Write a Joint Venture Business Plan?

Also known as joint venture, referred to as JV (joint venture), is generally defined as the establishment of two companies jointly invested in capital, each of them owns part of the equity, and jointly share profits, expenses, risks and control of the company.

Joint venture

Also known as

A joint venture may be formed for only one project or plan, or it may be like

Joint ventures are very common in oil companies and are often established as a partnership between a domestic company and a foreign company (of which 3/4 are international companies). Through this form of cooperation, domestic companies can obtain the technical equipment it lacks, and foreign companies can also use the domestic companies' familiarity with the country and

According to research, there is a 30% to 61% chance that companies will not be able to negotiate a joint venture, or that the joint venture will fail within five years (Osborn, 2003). In addition, joint ventures in low-developed countries are also less stable, and joint ventures with local governments have a greater chance of failure.

The two AB companies cooperate in development and investment. Company A wants to join others in joint venture B by holding the land use rights. It can be said that since the value of the investment is already higher than the value of the account of Enterprise A, from this link In other words, can enterprise A not pay business tax and land value-added tax? What kind of taxes should the enterprise B pay, and is the value of the land use right the assessed value and based on it?

For enterprise A, we need to discuss whether the taxes and fees to be paid are business tax, land value added tax and corporate income tax. According to the relevant regulations of the State Department of Finance and Taxation, enterprises that invest in shares of intangible assets and real estate must share risks in the process of receiving profits from investors, so they cannot levy business taxes. If an enterprise invests in a joint venture based on real estate, and for an associated party, if the enterprise that invests in land as a shareholding investment uses real estate as an asset to invest in the joint venture, the land value-added tax may be exempted. If the real estate for investment and associate business is to be transferred, the land value-added tax fee will be levied. According to the relevant regulations of the country, if the investment is made by using as the price, if it is a real estate company, Real estate development enterprises that use real estate as the price for joint ventures are exempt from land value-added tax. If the company has a non-monetary asset exchange, if it is selling goods or transferring assets and providing labor services, the company can handle assets at fair value. Whether it is disposing of assets or investing, it must pay corporate income tax. ^[1]

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