Meaning of Joint Venture: When two or more persons join hands to jointly undertake a very short term business (which may be limited to only one transaction) without the use of a firm name, we may call it a joint venture. This may be to construct a bridge or underwrite shares of a company or purchase and sale of some goods. This is a kind of short term partnership which automatically ends with the completion of its tenure or business.
1. Joint Venture is a limited to a single venture but this is not the case in Partnership.
2. No specific Act governs joint ventures but Partnerships are governed by Partnership Act, 1932.
3. Joint Venture does not have a firm name but in case of Partnership, it is a must.
4. A partner is a Principal and agent of any other partner, which is not the case with co-venturers.
5. Separate set of books is mandatory for Partnerships but it is not mandatory for Joint Ventures.
6. Accounts of Partnerships are written on the basis of Going Concern Concept while Joint Venture Accounts are written on liquidation basis.
7. A minor can be admitted to benefits of Partnership but he cannot be a co-venturer because he is not competent to enter a contract.