Document background
The Partnership Contract Agreement is a fundamental legal document used when two or more parties wish to establish a formal business partnership in Indonesia. This document is essential for businesses operating under Indonesian jurisdiction and must comply with the Indonesian Civil Code (KUHPerdata) and related business regulations. It is particularly relevant when parties need to formalize their business relationship, define capital contributions, establish profit-sharing mechanisms, and set management structures. The agreement should be used at the commencement of a partnership or when formalizing an existing business relationship, and includes crucial provisions for partner rights, obligations, decision-making processes, and dispute resolution mechanisms. This document is vital for both domestic partnerships and those involving foreign partners, though additional requirements may apply for foreign investment partnerships under Indonesian investment laws.
