Cross-border JVs

There is no ‘one size fits all’ approach when forming cross-border Joint ventures (JVs) (ie where one or more of the JV parties is based outside the UK and they intend to form a JV vehicle outside the UK). The terms of any agreement must ultimately describe the commercial arrangement between the parties. However, many of the legal issues set out in this and the following Practice Notes: Cross-border joint ventures—initial considerations, Cross-border joint ventures—taxation and funding issues and Cross-border joint ventures—termination may in fact influence the choice of jurisdiction for the JV entity, as well as the commercial deal itself, and should therefore be considered as early as possible to give the JV the best chance of success.

Even if a joint venture agreement (JVA) has a familiar governing Law, such as English law, establishing a cross-border JV can lead to unexpected and unfamiliar issues arising. Each of the issues is discussed at a relatively