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 |