In certain circumstances, companies are required to keep a register for each fiscal year. Parties to a joint venture agreement on an entity may wish to consider the impact of their participation on their existing structure, accounting and taxes. In particular, whether their participation in the joint venture would be considered an investment or a subsidiary. In the latter case, the entity may need to be consolidated in the financial accounts of the parties to the joint venture.  This is the case under UAE law, while KSA contains certain limited provisions that are relevant to contractual joint ventures in the rules for the enforcement of public procurement law, as we will explain later. Interestingly, Qatar`s Law on Commercial Companies contains some general provisions regarding UJVs, which we will discuss below. However, it is important to note that much of the debate generally applies to joint ventures in other countries. The registered joint venture requires numerous formalities, including legalised and translated documents from the foreign shareholder(s), the drawing up of a shareholders` agreement, the preparation and official signature of company articles and the obtaining of various licences to be provided by the competent authorities. Incorporated joint ventures offer the parties to the joint venture significantly better patrimonial protection than non-registered companies. This is because the company`s liabilities are usually included in the joint venture and are limited to it, instead of being directly supported by the joint ventures.
Once the holdings and governance of the Joint Undertaking have been taken into account, financial provisions will be equally essential. Members will wish to establish principles for their respective contributions with respect to working capital and financing policies, bonds and guarantees, profit-sharing, costs, risks and liability participation, insurance and bank accounts. In accordance with regional practice, banks generally accept and request the opening of bank accounts in the name of the joint venture, provided that each member has a correct registration, complies with the bank`s customer verification procedures and that the rules for operating the accounts are clearly defined. This means that the bank accounts of a joint venture can be targeted not only by the employer, but also by each member`s creditors, as we will see below. If the joint venture concludes a contract (whether it is the main contract with the employer or contracts with suppliers, subcontractors or consultants), this actually means that each member of the joint venture has given a mandate to a common representative who is entitled to sign that contract on behalf of each member. . . .