50 50 Business Partnership Contract for United Arab Emirates

50 50 Business Partnership Contract Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes an equal (50-50) partnership between two parties for business purposes. This contract complies with UAE Commercial Companies Law (Federal Law No. 2 of 2015) and related regulations, defining the equal rights, responsibilities, and obligations of both partners. The document covers essential aspects including capital contributions, profit sharing, management structure, decision-making processes, and dispute resolution mechanisms, all specifically tailored to meet UAE legal requirements and business practices.

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What is a 50 50 Business Partnership Contract?

The 50-50 Business Partnership Contract is a fundamental legal document used in the United Arab Emirates when two parties wish to establish an equal partnership business venture. This document is essential for compliance with UAE Commercial Companies Law and must be executed in accordance with local regulations and practices. It's particularly relevant for new business formations, joint ventures, or when restructuring existing businesses into equal partnerships. The contract comprehensively covers all aspects of the partnership, including capital contributions, profit sharing, management rights, operational procedures, and exit strategies. It requires careful consideration of UAE-specific requirements such as local ownership rules (if applicable), economic substance regulations, and appropriate dispute resolution mechanisms under UAE law. The document serves as the founding agreement that governs the entire business relationship between the partners and provides a clear framework for business operations and partner interactions.

What sections should be included in a 50 50 Business Partnership Contract?

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

2. Background: Context of the partnership formation and brief description of the business purpose

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

4. Partnership Structure: Legal form of partnership and confirmation of 50-50 ownership structure

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

6. Capital Contributions: Details of initial and any agreed future capital contributions from each partner

7. Profit and Loss Sharing: Terms for 50-50 distribution of profits and losses

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

9. Partners' Duties and Obligations: Specific responsibilities and commitments of each partner

10. Banking and Financial Matters: Banking arrangements, accounting practices, and financial management procedures

11. Transfer of Partnership Interest: Rules and restrictions regarding the transfer of partnership shares

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

13. Dispute Resolution: Procedures for resolving disputes between partners

14. Governing Law: Confirmation of UAE law governance and jurisdiction

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

What sections are optional to include in a 50 50 Business Partnership Contract?

1. Non-Compete and Confidentiality: Restrictions on competitive activities and protection of confidential information - recommended when sharing sensitive business information

2. Intellectual Property Rights: Ownership and usage of intellectual property - needed when the business involves creation or use of IP

3. Insurance: Required insurance coverage - important for high-risk businesses

4. Employee Matters: Guidelines for hiring and managing employees - needed when the partnership will have employees

5. Exit Strategy: Detailed procedures for partner exit or business sale - recommended for complex businesses

6. Force Majeure: Provisions for unforeseen circumstances - important in certain industries or locations

7. Compliance with Islamic Law: Specific provisions ensuring Shariah compliance - needed if partners require Islamic law compliance

What schedules should be included in a 50 50 Business Partnership Contract?

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

2. Schedule 2: Business Plan: Initial business plan and strategic objectives

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

4. Schedule 4: Banking Arrangements: List of authorized signatories and banking procedures

5. Schedule 5: Intellectual Property: List of owned and licensed intellectual property

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

7. Appendix B: Required Licenses: Copies or details of necessary business licenses and permits

8. Appendix C: Property Details: Information about any business premises or assets owned by the partnership

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

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail

Professional Services

Technology

Manufacturing

Real Estate

Food and Beverage

Construction

Trading

Consulting

Healthcare

Education

Tourism and Hospitality

Media and Entertainment

Financial Services

E-commerce

Relevant Teams

Legal

Finance

Corporate Governance

Compliance

Business Development

Operations

Risk Management

Strategy

Investment

Administrative

Relevant Roles

Business Owner

Managing Partner

CEO

Legal Counsel

Chief Financial Officer

Business Development Manager

Company Director

Operations Manager

Compliance Officer

Risk Manager

Corporate Secretary

Investment Manager

General Manager

Partnership Manager

Strategy 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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