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Partnership Agreement Form for Saudi Arabia

Partnership Agreement Form Template for Saudi Arabia

A comprehensive legal document governed by Saudi Arabian law that establishes and regulates a business partnership between two or more parties. This agreement outlines the essential elements of the partnership including capital contributions, profit-sharing arrangements, management responsibilities, and operational procedures, all while ensuring compliance with both Saudi Companies Law and Sharia principles. The document incorporates specific provisions for partner rights, obligations, decision-making processes, and dispute resolution mechanisms, tailored to meet Saudi Arabian regulatory requirements and business practices.

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What is a Partnership Agreement Form?

The Partnership Agreement Form is a crucial legal document used in Saudi Arabia when two or more parties wish to establish a formal business partnership. This document is essential for compliance with Saudi Companies Law and Sharia principles, providing a comprehensive framework for the partnership's operation. It details capital contributions, profit-sharing mechanisms, management structures, and partner obligations, while incorporating necessary provisions for foreign investment if applicable. The agreement serves as the foundational document for partnership registration with relevant Saudi authorities, including the Ministry of Commerce and Investment. It's particularly important given Saudi Arabia's evolving business landscape under Vision 2030, requiring careful consideration of both traditional partnership elements and modern business requirements.

What sections should be included in a Partnership Agreement Form?

1. Parties: Identification of all partners, including full legal names, addresses, and registration details for corporate partners

2. Background: Context of the partnership formation, including the business purpose and intentions of the parties

3. Definitions: Key terms used throughout the agreement, including technical, financial, and legal terminology

4. Partnership Structure: Legal form of partnership, registration details, and compliance with Saudi Companies Law

5. Business Purpose: Detailed description of partnership's business activities and scope, ensuring Sharia compliance

6. Capital Contributions: Details of initial and ongoing capital contributions, including valuation of non-cash contributions

7. Profit and Loss Sharing: Distribution of profits and losses, including Zakat considerations and dividend policies

8. Management and Control: Partnership management structure, voting rights, and decision-making processes

9. Partner Rights and Obligations: Detailed responsibilities and rights of each partner, including operational involvement

10. Financial Management: Banking, accounting practices, financial reporting, and audit requirements

11. Transfer of Partnership Interests: Rules for transferring partnership shares, including pre-emptive rights and restrictions

12. Term and Termination: Duration of partnership and circumstances allowing termination or withdrawal

13. Dispute Resolution: Procedures for resolving disputes, including Saudi court jurisdiction and alternative resolution methods

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

15. General Provisions: Standard clauses including notices, amendments, and severability

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

1. Foreign Investment Provisions: Required when any partner is non-Saudi, addressing SAGIA requirements and foreign investment regulations

2. Intellectual Property Rights: Needed when the partnership involves significant IP assets or technology transfer

3. Non-Competition: Restrictions on partners' involvement in competing businesses, if agreed upon

4. Employee Matters: Required when partnership will have significant employment operations, addressing Saudization requirements

5. Religious Observance: Specific provisions for business operations during prayer times and religious holidays

6. Succession Planning: Required for family businesses or when specific succession arrangements are needed

7. Environmental Compliance: Needed for partnerships in industries with environmental impact

8. Technology and Data Protection: Required when partnership involves significant digital assets or personal data processing

What schedules should be included in a Partnership Agreement Form?

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

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

3. Schedule 3: Partner Information: Detailed information about each partner, including corporate structure for company partners

4. Schedule 4: Key Personnel: List of key management personnel and their roles

5. Schedule 5: Assets Schedule: Inventory of partnership assets including valuation

6. Appendix A: Partnership Certificate: Official partnership registration documents and licenses

7. Appendix B: Special Resolutions: Pre-agreed special resolutions or partner decisions

8. Appendix C: Power of Attorney: If required, powers of attorney for partnership operations

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

Saudi Arabia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions












































Clauses













































Relevant Industries

Manufacturing

Real Estate Development

Technology and Digital Services

Professional Services

Trading and Distribution

Construction and Engineering

Healthcare Services

Education and Training

Financial Services

Retail and Consumer Goods

Energy and Utilities

Tourism and Hospitality

Agriculture and Food Production

Logistics and Transportation

Mining and Natural Resources

Relevant Teams

Legal

Corporate Affairs

Compliance

Finance

Business Development

Operations

Risk Management

Strategy

Investment

Corporate Governance

Partner Relations

Commercial

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Business Development Manager

Chief Financial Officer

Corporate Secretary

Compliance Officer

Investment Manager

Partner Relations Manager

Operations Director

Risk Manager

Strategy Director

General Counsel

Commercial Director

Board Member

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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