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Partnership Agreement for United Arab Emirates

Partnership Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes and regulates the relationship between two or more partners in a business venture. The agreement complies with UAE Commercial Companies Law (Federal Law No. 2 of 2015) and relevant emirate-specific regulations, outlining capital contributions, profit sharing, management structure, and partner obligations. It includes provisions for both local and foreign partnerships, incorporating necessary compliance with UAE foreign investment laws and local ownership requirements where applicable. The document serves as the foundational framework for partnership operations, dispute resolution, and eventual dissolution procedures.

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Partnership Agreement

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What is a Partnership Agreement?

A Partnership Agreement is a crucial legal document used when two or more parties wish to establish a business partnership in the United Arab Emirates. This document is essential for compliance with UAE Commercial Companies Law (Federal Law No. 2 of 2015) and must address specific local requirements, including potential local ownership quotas and foreign investment restrictions. The agreement should be drafted in both English and Arabic, with the Arabic version prevailing in UAE courts. It covers essential aspects such as capital contributions, profit sharing, management rights, partner obligations, and exit procedures. The document is particularly important in the UAE context due to the unique business environment, which includes free zones, mainland operations, and specific industry regulations. Partners should use this agreement to clearly define their rights and obligations while ensuring compliance with both federal and emirate-specific laws.

What sections should be included in a Partnership Agreement?

1. Parties: Identification of all partners, including full legal names, addresses, and registration details

2. Background: Context of the partnership formation and partners' intention to enter into the agreement

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

4. Partnership Formation: Declaration of partnership establishment, business name, and commencement date

5. Business Purpose: Detailed description of partnership's business activities and objectives

6. Capital Contributions: Details of initial and ongoing capital contributions from each partner

7. Profit and Loss Sharing: Formula and mechanisms for distributing profits and losses

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

9. Partners' Duties and Obligations: Specific responsibilities and commitments of each partner

10. Banking and Financial Matters: Banking arrangements, accounting procedures, and financial management

11. Transfer of Partnership Interest: Rules regarding transfer of partnership shares and admission of new partners

12. Term and Termination: Duration of partnership and conditions for termination

13. Dissolution and Liquidation: Procedures for partnership dissolution and asset distribution

14. Governing Law and Jurisdiction: Specification of UAE law application and jurisdictional matters

15. General Provisions: Standard clauses including notices, amendments, and severability

What sections are optional to include in a Partnership 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 partnership involves creation or use of IP

3. Dispute Resolution: Detailed arbitration or mediation procedures - include when partners want specific dispute resolution mechanisms

4. Islamic Finance Compliance: Specific provisions ensuring Sharia compliance - include when partnership requires Islamic finance structures

5. Force Majeure: Provisions for unforeseen circumstances - include when business has specific operational risks

6. Employment of Partners: Terms for partners' employment in the business - include when partners will be actively employed

7. Insurance: Required insurance coverage - include when business has specific insurance needs

8. Confidentiality: Detailed confidentiality obligations - include when partnership involves sensitive information

What schedules should be included in a Partnership Agreement?

1. Schedule 1 - Capital Contributions: Detailed breakdown of each partner's initial and committed capital contributions

2. Schedule 2 - Profit Sharing Ratios: Detailed formula and calculations for profit and loss distribution

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

4. Schedule 4 - Property and Assets: List of partnership's initial assets and properties

5. Schedule 5 - Management Structure: Detailed organizational structure and management procedures

6. Appendix A - Partner Information: Detailed information about each partner including contact details and representatives

7. Appendix B - Required Licenses: List of required licenses and permits for the partnership

8. Appendix C - Bank Account Details: Partnership's banking information and authorized signatories

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions














































Clauses









































Relevant Industries

Professional Services

Real Estate and Construction

Trading and Distribution

Technology and Digital Services

Healthcare

Hospitality and Tourism

Manufacturing

Retail

Financial Services

Consulting

Education

Media and Entertainment

Logistics and Transportation

Relevant Teams

Legal

Corporate Affairs

Compliance

Finance

Business Development

Operations

Risk Management

Strategy

Investment

Executive Leadership

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Company Secretary

Operations Director

Compliance Officer

Partnership Manager

Investment Manager

Business Owner

Entrepreneur

General Manager

Risk Manager

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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