The joint venture agreement under Italian Law
The joint venture is an agreement between two or more companies that combine their resources to collaborate on a specific business deal, for a limited period of time, generally with the aim of containing costs and increasing competitiveness.
Foreign investors usually choose to make joint ventures with local companies. In Italy, joint ventures have become increasingly common, because they represent an advantage for both parties in the international business arena. Indeed, joint ventures allow to share, not only profits, but also risks and losses.
Italy does not have specific legislation for joint ventures, but they are subject to existing rules on contracts and relations between companies.
In Italy, two main types of joint venture may be identified:
- Contractual joint venture: an agreement is stipulated including obligations and rights for the business deal at issue, and keeping the companies well separated and distinct.
- Corporate joint venture: the agreement creates a new company where the shareholders are the contracting companies. It, therefore, implies the registration of a company in Italy (a limited liability or a joint-stock company, depending on the share capital and business purpose).
All joint venture agreements must be registered with the Italian Revenue Agency (Agenzia delle Entrate) and they shall comply with corporate laws and competition regulations.VGS Corporate Team will be more than happy to assist and address any further questions you may have. For further information please contact us or leave your contact details in the Contact Form and you will be contacted within 24 hours.