International Joint Ventures
The increasing globalization of business frequently calls for joining forces with international partners. As with all things related to business, this requires planning, preferably before you undertake any steps bonding your company to a foreign partner.
- Deal Structuring
Each international deal is unique, joint ventures being no exception. At our first meeting, we will work on formulating your long- and short-term objectives for the deal. If the engagement is of the one-off, irregular type, there rarely is a need to overcomplicate things by creating domestic and foreign entities, doing complex tax planning, or retaining foreign counsel to ensure ongoing compliance with foreign law.
However, when the goal of the joint venture is to form a lasting and continuous relationship, it is worth both the time and the money to look into every small thing that may complicate that relationship down the road. Not only will we work with you and your foreign or American partners to select the best deal and entity structure for your joint enterprise. As your advisor, we will also look into ways that the law can make your venture more profitable.
For example, domiciling your joint venture entity in an overseas jurisdiction may not just save you a significant amount of money in corporate taxes but also give you significantly more freedom to choose the terms of your transaction, particularly the applicable law and the dispute resolution procedures. If no production line relocation or placement is involved, this option may result in an increased profitability and the ease of doing business in the future. Conversely, if your joint venture involves being physically present in a jurisdiction, The Stewart Firm will help you select the one that is right for your venture, as well as assist you in procuring and maintaining all licenses and permits that are required to do business at your chosen location. Regardless of the location and the structure of your business, if a technological know-how is involved, with or without the transfer of intellectual property rights to your joint venture or business partners, we will ensure that the chosen jurisdiction provides the best protection for your rights.
- Due Diligence
At The Stewart Firm, we understand the added risks of working with a partner that does business far away from your corporate domicile. That is why we partnered with multiple domestic, foreign, and international trade organizations, which puts us in a unique position to make enquiries about the goodwill and reputation of your business partners that go beyond the common public record searches.
If you are planning to enter American markets with a foreign product or service, The Stewart Firm can use its domestic network in a similar fashion, in addition to the normal records enquiries, to ensure the reliability and stability of your new business connection and the lasting success of your international venture.
- Terms of Engagement
The applicable law is among the most important and, at the same time, the most overlooked terms of any joint venture agreement. While attorneys traditionally opt for the law of their licensing state or agree with the other party's choice of law and forum, it is of utmost importance to note that despite the overwhelming and pervasive presence of joint ventures in the world trade, some foreign jurisdictions either do not recognize the concept the way our law does or treat it very differently from the way American attorneys are used to dealing with. Our job at this point is to help you select the best domicile for your joint venture that will secure its ongoing and uninterrupted existence, without the added risks of changes in the law or the regulatory environment.
After the most favorable legal regime is chosen, The Stewart Firm will work with you and your partners to negotiate and formalize all other terms of your deal. This is particularly important if you and your partners intend for your venture to continue in the long term. While a short-term engagement warrants a degree of diligence that ensures an easy and clear-cut ways out for all participants, a long-term deal needs to account for most, if not all, possible disagreements that may arise between you and your partners and provide for a collaborative way to resolve those differences. Our Managing Attorney will put at your service years of experience negotiating and documenting multilingual international joint venture agreements and remain by your side for the lifetime of your deal and beyond to make sure that your legal risks are kept at the minimum, with a view to maximizing monetary benefits of your international business enterprise.