Definition and Concept

• An unincorporated joint venture does not form a new legal entity
  
• It is based solely on a contractual agreement between parties
  
• The parties collaborate to achieve a specific business goal
  
• It operates under mutual understanding without separate registration
  
• Each party retains its own legal identity and autonomy
  

Structure and Agreement

• Governed by the Indian Contract Act, 1872
  
• A joint venture agreement defines rights and obligations
  
• Covers roles, contributions, and revenue-sharing terms
  
• Specifies duration, scope, and decision-making process
  
• Legally binding for all participating parties
  

Management and Control

• Managed jointly as per contractual terms
  
• No board of directors or company structure is needed
  
• Each partner may take charge of specific functions
  
• Decision-making is mutual and collaborative
  
• Disputes are resolved based on agreement clauses
  

Liability and Financial Aspects

• Partners are individually responsible for their obligations
  
• There is no limited liability protection
  
• Tax is paid by each party on their respective income
  
• No requirement to file separate returns for the venture
  
• Costs and profits are directly handled by the partners
  

Use and Applicability

• Suitable for short-term projects and limited collaborations
  
• Common in construction, real estate, and service contracts
  
• Preferred where quick execution and flexibility are needed
  
• Involves less compliance and regulatory burden
  

Avoids the complexity of company formation and governance