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Agreement For Partnership Deed for Saudi Arabia

Agreement For Partnership Deed Template for Saudi Arabia

A comprehensive legal document governed by Saudi Arabian law that establishes and regulates the relationship between two or more partners in a business venture. This agreement outlines the essential elements of the partnership including capital contributions, profit-sharing arrangements, management responsibilities, and operational procedures, while ensuring compliance with both Saudi Companies Law and Sharia principles. The document incorporates specific requirements of Saudi Arabian jurisdiction including commercial registration requirements, ministry approvals, and relevant regulatory compliance measures.

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What is a Agreement For Partnership Deed?

The Agreement For Partnership Deed is a fundamental legal document used in Saudi Arabia when establishing a business partnership between two or more parties. This document is essential for formalizing partnerships under Saudi Companies Law and must comply with both civil law requirements and Sharia principles. It becomes necessary when partners wish to establish a formal business relationship, whether for professional services, trading, or other commercial activities. The agreement typically includes detailed provisions about capital contributions, profit-sharing, management structure, partner obligations, and dispute resolution mechanisms. It must be executed in accordance with Saudi Arabian legal requirements, including proper authentication and registration with relevant authorities such as the Ministry of Commerce. The document serves as the governing framework for the partnership throughout its lifetime and is crucial for protecting partners' rights and defining their obligations.

What sections should be included in a Agreement For Partnership Deed?

1. Parties: Identification of all partners with their full legal names, addresses, and national ID/commercial registration numbers

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

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

4. Partnership Structure: Legal form of partnership, business address, and registration details

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

6. Capital Contribution: Details of each partner's capital contribution, whether monetary or in-kind

7. Profit and Loss Distribution: Agreement on how profits and losses will be shared among partners

8. Management and Control: 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, financial year, accounting practices

11. Duration and Termination: Partnership term and conditions for termination

12. Dispute Resolution: Procedures for resolving disputes between partners

13. Governing Law: Confirmation of Saudi law application and Sharia compliance

14. Notices: Process for formal communications between partners

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

What sections are optional to include in a Agreement For Partnership Deed?

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 the partnership involves creation or use of intellectual property

3. Death or Incapacity: Procedures following death or incapacity of a partner - particularly important for family businesses

4. Insurance: Insurance requirements - include when partnership has significant assets or operational risks

5. Employee Matters: Employment policies and procedures - include when partnership will have employees

6. Foreign Investment Provisions: Special provisions for foreign partners - include when any partner is non-Saudi

7. Zakat and Tax Matters: Detailed tax planning arrangements - include for complex tax structures or foreign partners

What schedules should be included in a Agreement For Partnership Deed?

1. Schedule 1: Capital Contributions: Detailed breakdown of each partner's capital contribution including valuation of non-cash assets

2. Schedule 2: Business Plan: Initial business plan and financial projections

3. Schedule 3: Management Structure: Detailed organizational chart and management responsibilities

4. Schedule 4: Property Details: Details of any property owned or leased by the partnership

5. Schedule 5: Intellectual Property: List and details of any IP rights owned or used by the partnership

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

7. Appendix B: Required Licenses: List of necessary licenses and permits for the partnership's operations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




































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Relevant Industries

Professional Services

Real Estate

Trading

Manufacturing

Construction

Technology

Healthcare

Retail

Hospitality

Consulting

Education

Agricultural

Transportation

Financial Services

Relevant Teams

Legal

Corporate Affairs

Finance

Compliance

Risk Management

Business Development

Operations

Board of Directors

Executive Leadership

Administrative

Relevant Roles

Business Owner

Managing Partner

Legal Counsel

Chief Executive Officer

Chief Financial Officer

Company Secretary

Business Development Manager

Corporate Lawyer

Compliance Officer

Risk Manager

Finance Director

Operations Manager

Managing Director

Board Member

Commercial Director

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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