In the United States and throughout Europe, there are differences between consortia and joint ventures. In the United States, consortia are often used in the non-profit sector, particularly in educational institutions, and include, for example, the Five College Consortium in Massachusetts, the Quaker Consortium, Claremont Colleges and the big ten Academic Alliance. On the other hand, consortia are rarely used in profit sectors, but joint ventures are very popular for entrepreneurs and entrepreneurs who want to come together and work together on a project or business. A growing number of consortium and joint venture projects also require the joint venture sponsor to take over the financial resources necessary to carry out the work. Such contractual cooperation is a way of sharing the risks inherent in a capital project and the financial burden on the borrowings of projects related to it, which can be very important. From a commercial point of view, the joint venture under contract offers more flexibility than the registered joint venture, which will permanently hire two or more companies as participation partners. On the other hand, the joint venture under contract will require much less formality, since it does not need to be registered, there will be no statutes in addition to the joint enterprise agreement and there will be no separate license to be obtained. GuWs are not recognized by the IRS, where the joint venture agreement determines how taxes are paid.  Thus, in its enforcement regulations, the GTPL in ksA deals with contractual joint ventures. Section 31 of this implementing regulation provides that bidders execute their contractual agreement (called a „solidarity agreement“) before submitting their bid and have it certified before the Chamber of Commerce or an equivalent authority.
Article 31 also contains several paragraphs on the expected content of such a solidarity agreement.  For example, a 55/45 or 60/40 redistribution is common for a bipartisan joint venture. Where there are three members, there is usually a 40/30/30-30 split or 50/30/20, although all types of redistribution are possible depending on the parties involved and the nature of the project. Sony. „Sony and Ericsson enter into a joint enterprise agreement.“ Access october 20, 2019. From the employer`s point of view, there can be no big difference between a joint venture and a consortium. However, the way contractors work is totally different for both solutions. It is important that employers and contractors understand these differences. For employers, this improves the understanding of contractors` behaviour. For contractors, every aspect of their relationship depends on the solutions chosen: price, margin, perimeter, liquidated damage, billing, etc. As a general rule, groups of economic operators have the right to tender or to be candidates („joint offer,“ also known as a „consortium“).
For the submission of an offer, the institution does not require consortia to adopt a specific legal form; it may be a permanent and legally established grouping or a grouping set up for a specific contracting procedure. Regardless of the legal structure used for the joint venture, the most important document will be the Joint Enterprise Agreement, which defines all the rights and obligations of the partners. The objectives of the joint venture, the first contributions of the partners, the day-to-day activities, the right to profits and the responsibility for the losses suffered by the joint venture are outlined in this document. It is important to design it carefully to avoid litigation along the way. From above, can we consider that the consortium and the JV (incorporated) are more or less equal? The registered joint venture is a self-governing legal entity with a distinct existence and purpose from those of its shareholders. A registered joint venture will also be required to establish audited accounts and file an annual tax return in countries in the region where income tax law is applicable (e.g. B to KSA or Qatar).