JOINT VENTURE AND PARTNERSHIP

Though joint venture is in the nature of a temporary partnership but in the strict

legal sense it is not a partnership. Both in joint venture and partnership some

business is carried on by two or more persons and the profits are shared by

all of them. But, there are some basic differences between the two. They are

as follows:




 

BASIS FOR COMPARISON

JOINT VENTURE

PARTNERSHIP

Meaning

Joint Venture is a business formed by two or more than two persons for a limited period and a specific purpose.

A business arrangement where two or more persons agree to carry on business and have mutual share in the profits and losses, is known as Partnership.

Governing Act

There is no such specific act.

The partnership is governed by the Indian Partnership Act, 1932.

Business carried on by

Co-venturers

Partners

Status of Minor

A minor cannot become a co-venturer.

A minor can become a partner to the benefits of the firms.

Basis of Accounting

Liquidation

Going Concern

Trade Name

No

Yes

Ascertainment of Profit

At the end of the venture or on interim basis as the case may be.

Annually

Maintenance of separate set of books

Not necessary

Mandatory

 

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