There are many advantages that help convince companies to enter into joint ventures: sharing costs and risks of projects that would be beyond the scope of a single company. Joint ventures are very important in those businesses in which there is a need for heavy initial investments to start a project that will bring long-term benefits (such as, for example, the oil sector or some large works).

For small, medium and large firms, joint venture offers an opportunity to act together to overcome barriers, including trade barriers in a new market or to compete more efficiently in the current one. It is very common, therefore, to find the creation of joint ventures to access foreign markets that require significant investments and specific know-how of the country in which one is trying to enter (for which one of the partners is usually a national company that knows the market, and the other one that intends to introduce its products).

The basic idea of ​​forming a joint venture is to unite knowledge, skills and resources, while sharing the profits and risks.

There are no requirements on how to act together. Companies can sign a collaboration contract (also an association contract), establish a UTE (recognized by Spanish[5]​ and Argentine law) or even a company in which both of them participate.

These types of associations are usually established in the medium or long term, since the objectives they seek are not easy to achieve and require a lot of planning and execution, so doing it in the short term would represent too many costs and little probability of its realization.

It is a distinctive characteristic of a joint venture that its members maintain their identity and independence towards it, as well as towards the other venturers, there is no merger or absorption to implement it, unless that has been one of the joint commitments agreed between the parties. The joint venture can also occur in the event that the venturers join only for the creation of a new product or the streamlining of an assembly line.

The difference between a joint venture and a merger is that in the case of a joint venture, companies A and B come together to create a company C; There are now three companies; This phenomenon is identified as a corporate or incorporated joint venture. On the other hand, in a merger (merger, in English), company A (merging) merges with company B (merger); From then on, only the merged company exists.[6]​.

In a joint venture, the partners typically continue to operate their businesses or companies independently. The joint venture represents one more business, this time with a partner, whose profits or losses will be reported in the income statement of each one depending on the legal form with which the joint venture itself has been structured.

It must be clarified whether a joint venture implies only the strategic partnership between private generation companies or if the concept can be applied to private companies in conjunction with national, provincial or municipal public administration organizations. If this is possible, the integration of private capital with public investment would bring benefits of imponderable characteristics for states, especially when these joint actions take place in the area of ​​science and technology.

There are many advantages that help convince companies to enter into joint ventures: sharing costs and risks of projects that would be beyond the scope of a single company. Joint ventures are very important in those businesses in which there is a need for heavy initial investments to start a project that will bring long-term benefits (such as, for example, the oil sector or some large works).

For small, medium and large firms, joint venture offers an opportunity to act together to overcome barriers, including trade barriers in a new market or to compete more efficiently in the current one. It is very common, therefore, to find the creation of joint ventures to access foreign markets that require significant investments and specific know-how of the country in which one is trying to enter (for which one of the partners is usually a national company that knows the market, and the other one that intends to introduce its products).