In certain circumstances, companies are required to keep annual accounts for each fiscal year. Parties to a joint venture agreement for a business entity can consider the impact of their participation on their existing group structure, accounts and taxes. In particular, if their participation in the joint venture would be considered a stake or a subsidiary. If this is the case, the entity may be consolidated into the financial accounts of the parties to the joint venture. Are there rules that specifically apply to parties outside the joint venture? South African labour law is generally favourable to workers with special legal rights granted to workers in various labour laws. Thus, women workers have legal leave, a right to strike and legal protection against dismissal. In general, they would apply to a joint venture in South Africa and workers employed in the joint venture would benefit from this legal protection. In the event of the transfer of workers from the parties to the joint venture to the joint venture, the joint venture would, in certain circumstances, be responsible for the recognition of certain employment protection measures before the transfer of the workers to the joint venture (mainly when the activity of the parties to the joint venture is entrusted as a current enterprise). Detachments from the common areas to the joint venture itself should be carefully considered, since some of the legal rights may be attached to the joint venture. Depends on the circumstances. Very often, intellectual property rights are held by the parties to the joint venture and are granted to the joint venture. Sometimes a separate IP entity containing the IP is created and that entity authorizes the IP to the joint venture.

The rights of the joint venture itself are generally transferred to the joint venture and would be treated in the same way as other assets at the time of termination. Are there any restrictions on the contribution of assets to a joint venture? Apart from South African exchange control rules, there are no specific rules for foreign partners.