advise for joint venture.

Ranjit Asati (Querist) 19 June 2008 This query is : Resolved
Dear Sir,
I am going to start a joint venture with a land developer.In this joint venture we will buy land and develope it,build duplaxes and sale it.I have to invest some money(50%) in the venture.Please advise me,which document should I prepare with him for future security of money and to minimize the risk of fraud?

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Dhrumil (Expert) 19 June 2008
First i suggest you to incorporate Company for limited liablity and make sure company's Articles of Association is drafted with ristrictions and benifits available as per companies Act.

Guest (Expert) 19 June 2008
Dhrumil has given the best suggestion, but to start with a partnership should be alright, as it is easy to manage it and compliance issues will be less.

Srinivas.B.S.S.T (Expert) 20 June 2008
You can even enter into a MOU with him, if you are not interested in floating a company.

Manish Singh (Expert) 20 June 2008
you can enter into a collaboration agreement with the developer.
but since as you say that the other party is also a developer that means you wish to enter into the real estate sector. so i would also advise you to float a private company.