1. Of equity
It involves the formation of a new business entity by two or more companies that decide to join forces through a joint capital investment.
In this type of arrangement, each company contributes financially based on its equity stake in the joint venture. For example, if two companies decide to form a joint venture and each invests 50% of the initial capital, then each will own 50% of the new entity. This model allows for sharing not only the potential benefits but also the risks associated with the joint venture, while providing a platform for combining resources, knowledge and experiences in pursuit of a common business goal.
2. By contract
A joint venture is a collaborative agreement between two or more companies that decide to work together for a specific project or activity without necessarily creating a new, separate business entity. In this type of joint venture, the companies involved sign a contract detailing the terms and conditions of their collaboration , including responsibilities, resource contributions, distribution of costs and benefits, as well as the duration and scope of the collaboration.
3. Cooperative
A cooperative is a specific form of business organization in united kingdom number data which people join together voluntarily to meet their common economic, social and cultural needs through a jointly owned and democratically operated enterprise.
In a cooperative, members are the ones who actively participate in decision-making and management of the enterprise, often using a democratic model in which each member has one vote, regardless of the amount of capital they have contributed. Cooperatives can operate in a variety of industries and sectors, including agriculture, financial services, housing, consumer, labor, and more.
Some key principles of cooperatives include voluntary and open membership, democratic member control , member economic participation, autonomy and independence, education, training and information, cooperation between cooperatives and concern for the community.
4. Horizontal
It is a type of collaboration agreement between companies that operate at the same level of the value chain or at the same stage of the production process , that is, they are direct competitors in a specific market and decide to join forces to achieve common objectives.
Its main characteristic is that the companies involved have similar or complementary business activities in the same sector or industry. By collaborating in a horizontal joint venture, these companies can share resources, technology, research and development costs, or even distribution networks to improve their competitive position in the market or to address specific problems affecting the industry as a whole.