Joint venture

A joint venture is an arrangement where two or more persons (participants) work together in a limited and defined business undertaking. Ordinarily, all participants of the joint venture contribute assets, share risks, and have mutual liability.

A joint venture agreement is not a continuing relationship between participants. For example, the venture may be for one specific business project. Once the project is completed, the joint venture ceases to exist.

Generally, participants in a joint venture name one participant to be the "joint venture operator". This person accounts for the day-to-day operations of the joint venture.

The BN of the operator is used.

The operator can add GST/HST and payroll accounts to their BN if they want to account for the joint venture activities separate from other activities.

What is the difference between a partnership and a joint venture

A joint venture is not considered a "person" for registration purposes, whereas a partnership is. Therefore, a partnership can have a BN; a joint venture cannot. A joint venture is limited in scope; a partnership is generally an ongoing business relationship that exists between persons carrying on common business. For more information see Partnership

Forms and publications

• The Business Number and Your Canada Revenue Agency Program Accounts pamphlet (RC2)
• Form RC1A, Business Number (BN) - GST/HST Account Information
• Form RC1B, Business Number (BN) - Payroll Deductions Account
• Form GST21, Joint Venture Election - Election to Have Joint Venture Operator Accounts for GST

Related topics

• Business Registration Online
• Canada Business
• Related provincial and territorial government sites
• Canada's Business and Consumer Site