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Business Partnership Percentage Agreement for United Arab Emirates

Business Partnership Percentage Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes and regulates the partnership relationship between two or more parties, specifically detailing their respective ownership percentages, profit-sharing arrangements, and operational responsibilities. The agreement complies with UAE Federal Law No. 2 of 2015 (Commercial Companies Law) and related regulations, incorporating specific provisions for capital contributions, management rights, decision-making processes, and exit mechanisms, while ensuring alignment with UAE's business practices and legal requirements.

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Business Partnership Percentage Agreement

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What is a Business Partnership Percentage Agreement?

The Business Partnership Percentage Agreement is a crucial document for establishing formal business relationships in the United Arab Emirates, operating under the framework of UAE Federal Law No. 2 of 2015 and its amendments. This agreement is essential when two or more parties wish to formalize their business relationship with clearly defined ownership percentages, profit-sharing arrangements, and operational responsibilities. It's particularly relevant for new business ventures, existing business restructuring, or when bringing in new partners, and must comply with UAE's specific requirements regarding foreign ownership, local partner provisions, and economic substance regulations. The document serves as a foundational agreement that governs the entire partnership relationship, including capital contributions, management rights, profit distribution mechanisms, and dispute resolution procedures.

What sections should be included in a Business Partnership Percentage Agreement?

1. Parties: Identification and details of all partners entering the agreement, including full legal names, addresses, and registration details if corporate entities

2. Background: Context of the partnership formation, business purpose, and general intent of the parties

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Partnership Structure: Legal form of partnership, ownership percentages, and capital contributions of each partner

5. Business Scope: Detailed description of the partnership's business activities and limitations

6. Capital and Funding: Initial capital contributions, additional funding requirements, and capital maintenance obligations

7. Profit and Loss Sharing: Detailed breakdown of profit and loss distribution percentages and calculation methods

8. Management and Control: Management structure, voting rights, and decision-making processes

9. Partner Rights and Obligations: Detailed responsibilities and rights of each partner

10. Financial Management: Banking arrangements, accounting practices, and financial reporting requirements

11. Term and Termination: Duration of partnership and circumstances for termination

12. Exit Provisions: Procedures for partner exit, including buy-out mechanisms and valuation methods

13. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction for dispute resolution

What sections are optional to include in a Business Partnership Percentage Agreement?

1. Non-Competition: Restrictions on partners engaging in competing businesses - include when partners have other business interests

2. Intellectual Property Rights: IP ownership and usage rights - include when the partnership involves creation or use of intellectual property

3. Foreign Ownership Provisions: Specific provisions related to foreign ownership - include when foreign partners are involved

4. Force Majeure: Provisions for unforeseen circumstances - include for higher-risk business activities

5. Environmental Compliance: Environmental obligations - include for businesses with environmental impact

6. Shariah Compliance: Islamic law compliance provisions - include when partners require Shariah-compliant structure

What schedules should be included in a Business Partnership Percentage Agreement?

1. Schedule 1: Capital Contributions: Detailed breakdown of initial and agreed future capital contributions by each partner

2. Schedule 2: Profit Distribution Formula: Detailed calculation methods and timings for profit distribution

3. Schedule 3: Business Plan: Initial business plan and strategic objectives

4. Schedule 4: Partner Information: Detailed information about each partner, including contact details and representative authorities

5. Schedule 5: Management Structure: Detailed organizational structure and management responsibilities

6. Appendix A: Financial Procedures: Detailed financial management procedures and reporting requirements

7. Appendix B: Valuation Methodology: Agreed methods for business valuation in case of exit or dispute

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Cost

Free to use
Relevant legal definitions








































Clauses




































Relevant Industries

Retail and Trading

Professional Services

Real Estate and Construction

Technology and Digital Services

Manufacturing

Healthcare

Hospitality and Tourism

Financial Services

Consulting

Import/Export

Food and Beverage

Education

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Affairs

Compliance

Business Development

Operations

Commercial

Risk Management

Strategy

Executive Leadership

Relevant Roles

Business Owner

Managing Director

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Corporate Lawyer

Business Development Manager

Partnership Manager

Investment Director

Company Secretary

Compliance Officer

Finance Director

Operations Director

Commercial Director

Board Member

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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