Cyprus Chapter Of International Joint Ventures – Second Edition – Release 4

Introduction

In Cyprus, as in other economies, joint ventures have become an increasingly common form of business organization, where two or more natural persons or business entities combine and pool their financial resources, specialized knowledge, and practical experience to implement a specific project or undertaking. There is no definition of a joint venture in Cyprus law, but four forms of joint ventures can be identified in current practice: contractual joint ventures, partnership joint ventures (general or limited), corporate joint ventures, and European Economic Interest Groupings (EEIG).

Contractual Joint Venture

In General

A contractual joint venture is an unincorporated form of cooperation based on a contract between the interested parties. It does not involve the conduct of business in common, as in a partnership.¹ The parties to a contractual joint venture remain autonomous and retain distinct roles, rights, and obligations. Nevertheless, a