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50 50 Partnership Agreement for Indonesia

50 50 Partnership Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates a 50-50 partnership between two parties. This document outlines equal ownership rights, responsibilities, profit-sharing arrangements, and operational procedures in accordance with the Indonesian Civil Code and relevant business regulations. It includes detailed provisions for capital contributions, management structure, decision-making processes, dispute resolution mechanisms, and termination procedures, all specifically tailored to comply with Indonesian legal requirements and business practices.

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50 50 Partnership Agreement

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What is a 50 50 Partnership Agreement?

The 50-50 Partnership Agreement is a crucial legal document used in Indonesia when two parties wish to establish a business partnership with equal ownership and control. This document is essential for partners seeking to formalize their business relationship under Indonesian law, particularly under the provisions of the Indonesian Civil Code (KUHPerdata) and relevant business regulations. It is commonly used when partners want to ensure equal participation in business decisions, share profits and losses equally, and have identical capital contribution requirements. The agreement provides comprehensive coverage of partnership operations, including management rights, financial arrangements, dispute resolution procedures, and termination provisions. This type of agreement is particularly relevant for both domestic Indonesian partnerships and international collaborations, subject to foreign investment regulations where applicable.

What sections should be included in a 50 50 Partnership Agreement?

1. Parties: Identification and details of the two partners entering into the 50-50 partnership

2. Background: Context of the partnership formation and partners' intention to enter into a 50-50 partnership arrangement

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

4. Partnership Structure: Details of the 50-50 ownership structure and confirmation of partnership type under Indonesian law

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

6. Profit and Loss Sharing: Terms for the equal (50-50) distribution of profits and losses

7. Management and Control: Framework for joint management and decision-making processes

8. Rights and Obligations: Detailed responsibilities and rights of each partner

9. Banking and Financial Matters: Procedures for handling partnership finances and banking arrangements

10. Records and Accounts: Requirements for maintaining partnership records and financial accounts

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

12. Dispute Resolution: Procedures for resolving disagreements between partners

13. Governing Law: Confirmation of Indonesian law as governing law and relevant jurisdictional matters

What sections are optional to include in a 50 50 Partnership Agreement?

1. Intellectual Property: Required when the partnership involves creation, use, or licensing of intellectual property

2. Non-Competition: Include when partners agree to restrictions on competing business activities

3. Foreign Investment Provisions: Necessary when one partner is a foreign entity or individual

4. Employee Management: Include when the partnership will have employees

5. Insurance: Required when specific insurance coverage is necessary for the partnership

6. Environmental Compliance: Include for partnerships operating in environmentally sensitive sectors

7. Force Majeure: Optional clause for handling unforeseen circumstances affecting partnership operations

What schedules should be included in a 50 50 Partnership Agreement?

1. Schedule 1 - Initial Capital Contributions: Detailed breakdown of each partner's initial capital contributions, including valuations of non-cash contributions

2. Schedule 2 - Business Plan: Initial business plan and strategic objectives of the partnership

3. Schedule 3 - Management Structure: Detailed organizational structure and management procedures

4. Schedule 4 - Asset Register: List of all partnership assets and their ownership status

5. Schedule 5 - Bank Account Details: Partnership bank account information and signing authorities

6. Appendix A - Partner Information: Detailed information about each partner, including contact details and registration numbers

7. Appendix B - Required Licenses: Copies or details of all required business licenses and permits

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions













































Clauses












































Relevant Industries

Retail

Manufacturing

Professional Services

Technology

Food and Beverage

Real Estate

Construction

Agriculture

Trading

Consulting

Hospitality

E-commerce

Education

Healthcare

Relevant Teams

Legal

Finance

Operations

Corporate Affairs

Compliance

Business Development

Strategic Planning

Risk Management

Investment

International Business

Relevant Roles

Business Owner

Managing Director

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Business Development Manager

Operations Director

Partnership Manager

Investment Manager

Company Secretary

Compliance Officer

Corporate Lawyer

Finance Director

Strategic Planning Manager

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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