A joint venture is when two existing companies, entities, or people agree to start a business together. Each company retains its own corporate identity. For purposes of this specific venture, they would create a new company together. The joint venture may or may not be its own unique business entity.
In a joint venture, the two parties will share in the income and losses. Here, the parties are pooling their assets and resources to accomplish whatever task is required by the venture. A joint venture can be a new business in an entirely new line, or it can be related to the partners’ existing venture.