A partnership agreement is an essential document that outlines the responsibilities, obligations, and expectations of all partners in a business venture. If you`re starting a business in the UAE with one or more partners, it`s crucial to have a partnership agreement in place to avoid any misunderstandings or legal disputes down the road.
Here is a partnership agreement sample UAE that can serve as a starting point for your business. Keep in mind that this is just a template, and you should consult a legal professional to ensure that your agreement complies with UAE law and addresses the specific needs of your business.
PARTNERSHIP AGREEMENT SAMPLE UAE
This agreement (“Agreement”) is made on [date] by and between [name of partner 1] (“Partner 1”), [name of partner 2] (“Partner 2”), and [name of partner 3] (“Partner 3”) (collectively, “Partners”) to establish a partnership under the laws of the United Arab Emirates.
1. Purpose and Name of Partnership
The purpose of this partnership is to [describe the business activities of the partnership], and the name of the partnership shall be [insert the name of the partnership].
2. Contributions of Partners
Each Partner shall contribute the following to the partnership:
– Partner 1: [list the contributions of Partner 1, e.g., cash, equipment, expertise]
– Partner 2: [list the contributions of Partner 2, e.g., cash, equipment, expertise]
– Partner 3: [list the contributions of Partner 3, e.g., cash, equipment, expertise]
3. Allocation of Profits and Losses
Profits and losses shall be allocated among the Partners as follows:
[Insert the percentage or ratio of profits and losses that each Partner will receive. For instance, Partner 1 may receive 40% of profits and losses, Partner 2 may receive 30%, and Partner 3 may receive 30%.]
4. Management and Decision-Making
Management of the partnership shall be vested in all Partners equally, and all decisions affecting the partnership shall be made by unanimous agreement of the Partners. A Partner shall not be entitled to act on behalf of the partnership without the consent of all other Partners.
5. Duration of Partnership
The partnership shall commence on [date] and shall continue until terminated in accordance with this Agreement.
6. Termination of Partnership
The partnership may be terminated by mutual agreement of the Partners or upon the occurrence of any of the following events:
– The death, disability, or bankruptcy of a Partner
– The withdrawal of a Partner by written notice to the other Partners
– The occurrence of an event that makes the partnership illegal or impracticable
– The unanimous agreement of the Partners to dissolve the partnership
7. Distribution of Assets Upon Termination
Upon any termination of the partnership, the assets of the partnership shall be distributed among the Partners in proportion to their respective capital accounts, after first paying all outstanding liabilities and obligations of the partnership.
8. Confidentiality and Non-Competition
During and after the term of this Agreement, each Partner shall maintain the confidentiality of all information related to the business of the partnership and shall not compete with the partnership in any manner that is detrimental to its business. This obligation shall survive the termination of this Agreement.
9. Governing Law and Dispute Resolution
This Agreement shall be governed by and construed in accordance with the laws of the United Arab Emirates. Any dispute arising out of this Agreement shall be resolved through arbitration in accordance with the rules of the Dubai International Arbitration Centre.
10. Entire Agreement
This Agreement constitutes the entire agreement of the Partners and supersedes all prior negotiations, understandings, and agreements between the Partners. This Agreement may not be amended or modified except in writing signed by all Partners.
In conclusion, a partnership agreement is a critical document that defines the relationship between partners in a business venture. A partnership agreement sample UAE like the one provided above can be used as a starting point to create a tailored partnership agreement for your business. It is essential to review and modify the agreement as per your business requirements and seek legal advice to ensure compliance with UAE laws.