There are different forms and types of Joint Venture. Before choosing the type of the Joint Venture it is important to judge the requirement for operating business then decide if the requirement can be fulfill through the "partnership agreement, by means of trading agreement or through a company with shareholders having degree of control over the company's activities". Joint Venture selection depends upon the nature and purpose of the venture, size of the organization, number of people involve, the tax considerations, requirement of the capital, and other important things. If the size of the organization is small and only two people are involve then in that case a partnership or simple trading agreement would be more constructive. On the other hand if the size is large and huge investment is required with high risk sharing then it would be advisable to choose the joint venture operation through company.
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Although there are many types of Joint Venture but before selecting any one need to consider many points. It is very important to select the right type of Joint Venture to run the organization in the fruitful way. Other types of Joint Venture are "Risk-Sharing Joint Venture", "R&D Joint Venture", and "International Joint Venture", "Pro-Competitive Joint Venture". R&D joint Venture is not very popular. It is a partnership between a high-tech issuer and tax-averse investors. If the project is very huge and includes high amount of profit and risk sharing then people often go for Risk-Sharing Joint Venture.
One needs to choose one among all types of joint Venture with proper care and precautions. Joint Venture agreement is also an important document which needs to be draft.