Overview
It is very important to make a robust, secure, and water-tight partnership agreement. Prior to the commencement of a business together by partner(s), it is imperative that they ensure that all the partners agree and are on the same page pertaining to the objectives of the firm. The partnership agreement makes a mention about the partner’s proportion of the ownership of the firm, and consequently their share in the profits, and liabilities. It also makes a mention of their rights, responsibilities, and duties. Further, the duration of partnership and conditions for the termination of the partnership are also some important details that are included in the partnership agreement. A partnership can also be a less formal operative structure than incorporation which would be able to inter a lip protects owners within the event of the death of one partner, a dispute, purchase to a replacement partner or the dissolution of the business. Our team at ASK AD-Wise is well versed with all factual and legal scenarios that are mainly required to interact in drafting a sound Partnership Agreement.
What Is The Process?
Understanding Requirements : The process of drafting a partnership agreement is initiated with the understanding of the requirements of both/all the partners, and the purpose for which the partnership is being proposed.
Discussion : After this, a detailed discussion usually takes place between the partners. As a consequence of this discussion, the partners finalize the terms of their partnership deed.
Drafting & Finalization : Pursuant to the detailed discussions between the parties, a partnership deed is drafted by a professional. Thereafter, the partners usually review it and after the detailed review by the partners, the agreement is finalized.
Details Required
- Name and address of the firm
- Name and address of the partners
- Nature of business that is to be carried on
- Date of commencement of the business
- Duration of partnership as decided between the parties
- Capital contribution by each partner
- Profit-sharing ratio as decided amongst the partners
Timeline
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