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Partnership Agreement Template

Two or more people set out how they will own, fund and run a business together and share its profits and losses. Download it in Word or PDF, or fill it in online and print it.

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PARTNERSHIP AGREEMENT

This Agreement is made on ____________ between:

(1) ____________, of ____________; and

(2) ____________, of ____________

(together the “Partners”).

1. Business and Name

The Partners shall carry on the business of ____________ in partnership under the name ____________ (the “Partnership”), from ____________ or any other place the Partners agree.

2. Commencement and Duration

The Partnership begins on ____________ and continues until it is dissolved under this Agreement.

3. Capital

The Partners shall contribute the following capital: First Partner ____________; Second Partner ____________. No Partner is required to contribute further capital unless all Partners agree in writing. Capital carries no interest.

4. Profits and Losses

The net profits and losses of the Partnership shall be shared as follows: First Partner ____________%; Second Partner ____________%. Each Partner may draw ____________ a month on account of profits, or another sum that the Partners agree.

5. Management and Decisions

Each Partner may take part in managing the business and shall give it the time and attention it reasonably requires. Ordinary decisions are made by majority. The following need the consent of all Partners: admitting a new partner; borrowing or lending more than ____________; buying or selling an asset worth more than ____________; changing the nature of the business; and giving any guarantee in the name of the Partnership.

6. Bank Account and Records

The Partnership’s money shall be kept in an account in its name at ____________, operated by ____________. Proper books of account shall be kept at the place of business and shall be open to every Partner at all reasonable times. Accounts shall be made up to ____________ each year.

7. Duties of the Partners

Each Partner shall act in good faith towards the others, account for all money received on behalf of the Partnership, and not carry on or have an interest in a competing business without the written consent of the others.

8. Retirement and Admission

A Partner may retire by giving the others ____________ months’ written notice. The share of a Partner who retires, dies or becomes incapable shall be valued as at that date and paid to that Partner or their estate within ____________ months, and the remaining Partners may continue the business.

9. Dissolution

The Partnership may be dissolved by agreement of all Partners. On dissolution the assets shall be applied first in paying the debts of the Partnership, then in repaying each Partner’s capital, and the balance shared in the proportions in clause 4.

10. Disputes

The Partners shall first try to settle any dispute by discussion in good faith. If it is not settled within ____________ days, it shall be referred to mediation, and failing that to the courts of ____________.

11. Governing Law

This Agreement is governed by the laws of ____________. It may be changed only in writing signed by all Partners.

First Partner

Signature: ____________

Name: ____________

Date: ____________

Second Partner

Signature: ____________

Name: ____________

Date: ____________

Witness 1 — Name: ____________ Signature: ____________

Witness 2 — Name: ____________ Signature: ____________

When is a partnership agreement used?

When two or more people start or run a business together without forming a company: a shop, a firm of professionals, a trading business. Without a written agreement, the law of the country decides how profits are shared and what happens when a partner leaves, which is rarely what the partners intended.

Signing and where it goes

All partners sign it, ideally before the business starts. In some countries a partnership can be registered with a registrar of firms, which makes it easier to open a bank account and to go to court.

Points to get right

Record each partner’s capital exactly, and whether it is money, equipment or work.
Agree now what happens when a partner wants to leave or dies: how the share is valued and how quickly it is paid.
List the decisions that need everyone’s consent, especially borrowing and guarantees.
Partners are usually personally liable for the debts of the partnership. If that is a concern, ask about forming a company or a limited liability partnership instead.

How to fill it in

Press Open in editor, or download the Word file to fill it in on your computer.
Replace every blank line with your own details, and delete the clauses and choices that do not apply.
Read it through once more as the other party would read it.
In the editor, press Print / PDF to make a PDF, or Word in the File tab to save a Word file.

Before you sign

These templates are general forms written to save time, not legal advice. The law differs from country to country and changes, and a paper about property, money or employment has legal effect. Fill in every blank, delete what does not apply, check the result against the law where you are, and have an important document reviewed by a lawyer before it is signed.

Questions

Questions and answers

Is a partnership deed the same as a partnership agreement?

Yes. In India and Pakistan the document is usually called a partnership deed. The content is the same.

Does a partnership agreement have to be registered?

That depends on the country. In some it is optional but brings benefits, in others it is required. Ask the registrar of firms or a lawyer where the business is.

Is this partnership agreement template free?

Yes. You can download it in Word or PDF, or fill it in online and print it, without payment or sign up, and no watermark is added.

Can I edit it online?

Yes. Press Open in editor: the template opens as an ordinary document in your browser. Fill in the blanks, change any clause, then download it as a Word file or a PDF.

Is it valid in my country?

It is written in a general form that is used in many countries, but the law differs from place to place. Check it against the rules where you are, and have an important document reviewed by a lawyer.

Is what I type sent anywhere?

No. What you type stays in your own browser on your device. Nothing is uploaded.

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