Joint ventures

A joint venture is a company set up by two or more other companies.

For example, Company X is a joint venture, and Company A and Company B each own equal parts. Under the Act, Company A and Company B will often be relevant employers.

If Company A and Company B both own 50% of Company X, then Company X:

• also counts as a relevant employer if it has 100 or more employees
• must report for itself as a standalone.

But if Company A has more control than Company B, Company X becomes a subsidiary of Company A.

• If control is equally shared and no company owns a majority stake, then the joint venture is treated as a standalone entity.