JVs between a foreign company and a local business are common in Macau and are typically structured through the setting up of a private company with liability limited by quotas.
Consortium Contract
It is also possible to establish a JV using the “consortium” concept, which is a contractual arrangement in which two or more parties work together to achieve a certain objective (see below list).
JVs between a foreign company and a local business are common in Macau and are typically structured through the setting up of a private company with liability limited by quotas.
It is also possible to establish a JV using the “consortium” concept, which is a contractual arrangement in which two or more parties work together to achieve any of the following objectives:
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Carrying out acts preparatory to a particular task or activity.
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Performing a particular project.
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Supplying goods, produced by the consortium members, to third parties.
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Researching or exploiting natural resources.
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Producing goods that can be shared, in kind, between the consortium members.
The rules governing the consortium contract are provided in Articles 528 to 550 of the MCC.
The consortium contract must be in writing. It can be a private document, unless another form is required by the nature of the assets each party contributes to the venture, for example, when a party contributes an asset, whose disposition is required by the law to be made in a certain legal form other than a private document, then the consortium contract must also be made in the same form.
The consortium contract does not create a separate legal personality distinct from its signatories. Generally, the terms and conditions of the contract are freely agreed between the parties.