tiktok成人版

Partnership Operating Agreement for Saudi Arabia

Partnership Operating Agreement Template for Saudi Arabia

A comprehensive legal document governed by Saudi Arabian law that establishes and regulates the relationship between partners in a business partnership. This agreement outlines the rights, responsibilities, and obligations of all partners, including capital contributions, profit-sharing arrangements, management structure, and decision-making processes. It ensures compliance with both Saudi Companies Law and Sharia principles while providing a framework for business operations, dispute resolution, and partnership governance. The document addresses key aspects such as partner admission, withdrawal, and succession planning, tailored to meet Saudi regulatory requirements and business practices.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free

Your data doesn't train Genie's AI

You keep IP ownership聽of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Partnership Operating Agreement?

The Partnership Operating Agreement serves as the foundational document for business partnerships operating in Saudi Arabia, providing a comprehensive framework for partner relationships and business operations. This document is essential when two or more parties wish to establish a formal partnership structure under Saudi law, whether as a general partnership, limited partnership, or professional partnership. The agreement must comply with the Saudi Companies Law, Ministry of Commerce regulations, and Sharia principles, making it particularly important to address both legal and religious considerations. The Partnership Operating Agreement includes crucial provisions regarding capital contributions, profit-sharing, management rights, decision-making processes, and dispute resolution mechanisms. It is commonly used when establishing new partnerships or restructuring existing ones, and becomes especially critical when dealing with mixed Saudi and foreign ownership structures requiring SAGIA approval.

What sections should be included in a Partnership Operating 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 operate the business

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. Partnership Formation and Purpose: Official establishment of the partnership, its business objectives, and scope

5. Capital Contributions: Details of initial and subsequent capital contributions from each partner

6. Profit and Loss Distribution: Formula and procedures for distributing profits and losses among partners

7. Management and Decision Making: Partnership governance structure, voting rights, and decision-making processes

8. Partners' Rights and Obligations: Detailed responsibilities and rights of all partners

9. Business Operations: Day-to-day management procedures and operational guidelines

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

11. Transfer of Partnership Interests: Rules governing the transfer of partnership shares and admission of new partners

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

13. Dispute Resolution: Procedures for resolving conflicts between partners, including Sharia-compliant arbitration

14. Governing Law: Confirmation of Saudi law governance and Sharia compliance

15. General Provisions: Miscellaneous legal provisions including notices, amendments, and severability

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

1. Intellectual Property Rights: Used when the partnership owns or develops significant IP assets

2. Non-Competition and Confidentiality: Added when partners need specific restrictions on competitive activities

3. Foreign Partner Provisions: Required when partnership includes non-Saudi partners, addressing SAGIA requirements

4. Zakat and Tax Provisions: Detailed section needed for partnerships with specific tax structures or foreign partners

5. Partner Death or Incapacity: Detailed provisions for succession planning, particularly important in family partnerships

6. Islamic Finance Compliance: Required for partnerships engaging in specific financial activities requiring Sharia compliance

7. Employee Profit Sharing: Used when partnership implements employee incentive schemes

What schedules should be included in a Partnership Operating Agreement?

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

2. Schedule 2: Profit Sharing Ratios: Specific formulas and percentages for profit and loss distribution

3. Schedule 3: Management Structure: Organizational chart and detailed management responsibilities

4. Schedule 4: Business Plan: Initial business plan and strategic objectives

5. Schedule 5: Partner Contact Details: Complete contact information and official notifications addresses

6. Appendix A: Required Governmental Approvals: List of licenses, permits and registrations required for operation

7. Appendix B: Banking Resolutions: Approved banking arrangements and authorized signatories

8. Appendix C: Accounting Policies: Detailed accounting procedures and policies

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

Jurisdiction

Saudi Arabia

Document Type

Agreement Contract

Cost

Free to use

Find the exact document you need

Selling Real Estate Contract

A Saudi Arabian real estate sales contract template compliant with local laws and Sharia principles, facilitating property transfers and ensuring regulatory compliance.

Download

Wholesaling Real Estate Contract

A Saudi Arabia-compliant wholesale real estate contract governing bulk property transactions under local law and Shariah principles.

Download

Non Binding Agreement

A non-binding agreement template for use under Saudi Arabian jurisdiction, combining Sharia law principles with modern commercial practices to document parties' intentions without creating legal obligations.

Download

Non Compete Form

A Saudi Arabian legal document restricting post-employment competitive activities, governed by Saudi Labor Law and Sharia principles.

Download

Agreement For Job Work

A Saudi Arabian law-governed agreement between client and contractor defining terms and conditions for specific job work or project-based services.

Download

Non Disclosure Form

Saudi Arabia-compliant Non-Disclosure Agreement template for protecting confidential information exchange under Saudi law and Shariah principles.

Download

Videography Contract

A Saudi Arabian law-governed agreement for professional videography services, ensuring compliance with local regulations while defining service terms and deliverables.

Download

Subscription Agreement

A Saudi law-governed agreement establishing terms for subscription-based services, compliant with local regulations and Shariah principles.

Download

Production Contract

A Saudi Arabian law-governed agreement establishing terms and conditions for manufacturing or production activities, ensuring compliance with local regulations and Sharia principles.

Download

Novation Agreement (Real Estate)

A Saudi Arabian law-governed agreement transferring real estate contract rights and obligations from one party to another, ensuring compliance with Shariah principles and local property regulations.

Download

Option Contract (Real Estate)

A Sharia-compliant agreement under Saudi Arabian law granting the right to purchase specified real estate at predetermined terms within an agreed timeframe.

Download

Labor Contract

A Saudi Arabian employment agreement that establishes terms and conditions of employment while ensuring compliance with Saudi Labor Law and regulations.

Download

Franchise Agreement

A Saudi Arabian law-governed agreement establishing a franchise relationship, granting business operational rights while ensuring compliance with local regulations and Sharia principles.

Download

Common Agreement

A general-purpose legal agreement template compliant with Saudi Arabian law and Sharia principles, suitable for establishing business relationships in Saudi Arabia.

Download

Barter Agreement

A Saudi Arabian law-governed agreement facilitating the direct exchange of goods/services between parties, structured to comply with both Sharia and commercial law requirements.

Download

Unregistered Sale Agreement With Possession

A Saudi Arabian agreement facilitating property sale and possession transfer without immediate registration, compliant with local law and Sharia principles.

Download

Master Contract

A Saudi law-governed framework agreement establishing terms for ongoing business relationships, compliant with Shariah principles and local regulations.

Download

Notarial Contract

A legally authenticated contract under Saudi Arabian law, officially verified and certified by a licensed notary public, providing enhanced legal security and evidential value.

Download

House Rent Agreement Form

A Saudi Arabian residential lease agreement that establishes rental terms between landlord and tenant, compliant with local laws and Ejar system requirements.

Download

Partnership Agreement Form

A Saudi Arabian law-governed agreement establishing and regulating a business partnership, ensuring compliance with local regulations and Sharia principles.

Download

Landscape Contract

A Saudi Arabian law-governed contract for landscape construction and maintenance services, including works specifications and environmental compliance requirements.

Download

Guarantee Contract

A Saudi Arabian law-governed contract where a guarantor assumes responsibility for another party's obligations to a beneficiary, structured in compliance with Sharia principles and local commercial laws.

Download

Tenancy Agreement Form

A Saudi Arabian lease agreement template that establishes property rental terms between landlord and tenant, compliant with Saudi Tenancy Law and Sharia principles.

Download

Simple Rental Agreement Form

A Saudi Arabia-compliant rental agreement template for residential and commercial properties, incorporating local legal requirements and Shariah principles.

Download

Money Agreement Between Two Parties

A Sharia-compliant money agreement under Saudi Arabian law establishing financial arrangements between two parties with specific terms and conditions.

Download

Side Agreement

A supplementary agreement under Saudi Arabian law that modifies or adds to the terms of a primary agreement while ensuring Shariah compliance.

Download

Novation Contract

A Saudi Arabian law-governed agreement transferring contractual rights and obligations from one party to another, with consent of all parties involved.

Download

Mutual Agreement Between Two Parties

A bilateral agreement template compliant with Saudi Arabian law and Sharia principles, establishing mutual rights and obligations between two contracting parties.

Download

Contract For Selling A Car

A Saudi Arabian law-compliant agreement for the sale and transfer of vehicle ownership, incorporating local regulatory requirements and Sharia principles.

Download

Business Transfer Agreement

A Saudi law-governed agreement for transferring business ownership, including assets, liabilities, and operational elements from one entity to another.

Download

Tooling Agreement

A Saudi Arabian law-governed agreement establishing terms for industrial tooling supply, ownership, and usage, compliant with local commercial and Sharia law requirements.

Download

Representation Agreement

A Saudi law-governed agreement establishing the terms and conditions for commercial representation between a principal company and its Saudi representative.

Download

Notary Rent Agreement

A notarized rental agreement compliant with Saudi Arabian law and Ejar system requirements, establishing terms for property lease.

Download

Non Compete Agreement Between Companies

A Saudi Arabian law-compliant agreement restricting competitive activities between companies within specified parameters and timeframes.

Download

Land Agreement Between Two Parties

A Saudi Arabian land agreement document that formalizes property rights transfer between two parties, compliant with Sharia law and local regulations.

Download

Buyer Agency Agreement

A Saudi Arabian law-governed agreement establishing the relationship between a property buyer and their real estate agent, outlining services, obligations, and compensation terms.

Download

Commercial Lease Form

A Saudi Arabian commercial lease agreement template that establishes terms for leasing business properties, compliant with local laws and Shariah principles.

Download

Vending Machine Contract

A Saudi Arabia-governed agreement for vending machine installation and operation, compliant with local commercial law and Sharia principles.

Download

Contra Agreement

A Saudi Arabian law-governed agreement facilitating the exchange of goods/services between parties without primary monetary consideration, compliant with Sharia and local commercial regulations.

Download

Catering Contract

A Saudi Arabian law-governed agreement establishing terms for catering services provision, incorporating local regulatory requirements and Halal compliance.

Download
See more related templates

骋别苍颈别鈥檚 Security Promise

Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; 骋别苍颈别鈥檚 AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it