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Simple Partnership Agreement for United Arab Emirates

Simple Partnership Agreement Template for United Arab Emirates

A Simple Partnership Agreement governed by UAE law is a fundamental legal document that establishes the terms and conditions of a partnership between two or more parties conducting business in the United Arab Emirates. This agreement, structured in accordance with UAE Commercial Companies Law (Federal Law No. 2 of 2015) and UAE Civil Code, outlines essential elements including capital contributions, profit-sharing arrangements, management responsibilities, and partnership operations. It provides a comprehensive framework for partnership governance while ensuring compliance with UAE legal requirements and business regulations.

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What is a Simple Partnership Agreement?

The Simple Partnership Agreement is a crucial document for businesses establishing a partnership structure in the United Arab Emirates. This agreement is particularly suitable for small to medium-sized enterprises looking to formalize their business relationship under UAE law. It encompasses essential provisions required by UAE Commercial Companies Law, including partner responsibilities, capital contributions, profit and loss sharing, management structure, and dissolution procedures. The document serves as both a regulatory compliance tool and a operational framework, helping partners clearly define their rights and obligations while meeting local legal requirements. It's commonly used when two or more parties wish to combine their resources and expertise to conduct business activities in the UAE, whether they are local or foreign investors.

What sections should be included in a Simple Partnership Agreement?

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

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

3. Definitions: Key terms used throughout the agreement

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

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

6. Capital Contributions: Details of initial and any agreed future capital contributions from each partner

7. Profit and Loss Sharing: Ratio and mechanism for distributing profits and losses among partners

8. Management and Decision Making: Partnership management structure and decision-making processes

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

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

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

12. Dissolution and Liquidation: Process for winding up the partnership and asset distribution

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

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

What sections are optional to include in a Simple Partnership Agreement?

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

2. Intellectual Property: IP ownership and usage rights, necessary when the partnership will develop or use significant IP

3. Insurance: Required insurance coverage and responsibilities, important for high-risk businesses

4. Dispute Resolution: Detailed dispute resolution procedures including mediation, useful for complex partnerships

5. Force Majeure: Provisions for unforeseen circumstances affecting partnership operations

6. Confidentiality: Protection of partnership's confidential information, important for knowledge-based businesses

7. Death or Incapacity: Specific provisions for handling partner death or incapacity, important for family businesses

What schedules should be included in a Simple 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 profit and loss distribution mechanisms including any varying ratios

3. Schedule 3 - Business Plan: Initial business plan and operational framework

4. Schedule 4 - Partner Details: Complete partner information including contact details and representatives

5. Schedule 5 - Partnership Assets: List of assets contributed to or owned by the partnership

6. Appendix A - Specimen Signatures: Authorized signatures for partnership operations

7. Appendix B - Required Licenses: List of required business licenses and permits

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

Document Type

Agreement Contract

Cost

Free to use

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