The difference between a joint venture and an associated enterprise

Legal analysis: A joint venture refers to an economic organization composed of two or more enterprises or institutions with the same or different ownership, which are jointly invested according to the principles of voluntariness, equality and mutual benefit. A joint venture has a great influence on the invested entity. A joint venture refers to an enterprise jointly invested and established by enterprises, companies or other economic organizations from two or more countries. According to the way of joint venture, there are two kinds: joint venture and cooperation. The investment of joint ventures and associated enterprises shall be accounted for by the equity method.

Legal basis:

1. Article 2 of the Partnership Enterprise Law. The term "partnership enterprise" as mentioned in this Law refers to the general partnership enterprise and limited partnership enterprise established in China by natural persons, legal persons and other organizations in accordance with this Law.

A general partnership consists of general partners, who are jointly and severally liable for the debts of the partnership. Where this Law has special provisions on the liability form of general partners, such provisions shall prevail.

Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.