Free Joint Venture Agreement Template (PDF for Canada)

Formation of the Joint Venture : All you need to know for Canada

This agreement establishes a formal joint venture between two parties operating in Canada. It defines the venture’s purpose, legal status, and how both companies will work together under a unified business goal, whether it’s launching a new product, expanding to new markets, or pooling resources for investment.

Capital Contributions and Ownership Structure

Each party’s initial and ongoing financial contributions are clearly outlined. The agreement includes a schedule for tracking each party’s cash, assets, or services contributed. This section ensures transparency and forms the basis for determining ownership percentages and control within the venture.

Profit Sharing and Loss Allocation

This clause governs how net profits will be divided and how losses are handled. Parties can select a profit-sharing formula or percentage split. Whether equal or proportionate, this structure is key to fair revenue distribution and sustainable joint operations.

Management Responsibilities and Voting Rights

The agreement allows for either a board of directors or a joint management committee. It outlines voting rights, meeting schedules, and how decisions are made. For Canadian businesses, having a clear governance framework prevents operational deadlocks and protects each party’s interests.

Operational Duties of Each Party

In addition to money, parties often bring expertise, personnel, licenses, or equipment. This section outlines each side’s responsibilities, timelines, and obligations. It ensures both parties actively contribute to the joint venture’s success and outlines what is expected beyond funding.

Intellectual Property and Ownership Rights

This clause addresses the handling of pre-existing intellectual property and any new IP created during the partnership. It ensures jointly developed intellectual property is shared fairly and may include licensing terms, usage rights, and post-termination access agreements.

Confidentiality and Non-Disclosure in Joint Venture Agreement

This section ensures sensitive business information remains protected throughout the partnership. It includes detailed definitions of confidential information and prohibits unauthorized sharing or use - critical for preserving business strategy, client data, and proprietary knowledge.

Termination Terms and Dispute Resolution

Partnerships may end - this clause defines how. It covers voluntary termination, breach, insolvency, or force majeure. It also includes a process for resolving disputes through negotiation, mediation, or arbitration, and confirms that Canadian law governs the agreement.

Why a Joint Venture Agreement Is Essential

A joint venture agreement protects both parties by clearly defining roles, profit sharing, and contributions. It minimizes risk, prevents disputes, and ensures your partnership is structured for success. Whether you're co-investing or launching a shared product, this document helps Canadian businesses move forward with confidence.

What’s Included in This Joint Venture Agreement Template

• A clear definition of the joint venture’s purpose and legal formation.
• Capital contribution schedules and ownership breakdowns.
• Profit and loss sharing terms with customizable formulas.
• Management structure with voting rules and dispute resolution.
• Specific obligations and deliverables from each party.
• Intellectual property clauses for jointly developed assets.
• Confidentiality and non-disclosure terms to protect sensitive data.
• Termination rights, exit strategies, and legal jurisdiction.