80 20 Partnership Agreement for United Arab Emirates

80 20 Partnership Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates a partnership structure where one party holds an 80% stake and another party holds a 20% stake. The agreement complies with UAE Commercial Companies Law and related regulations, detailing capital contributions, profit-sharing arrangements, management rights, operational procedures, and dispute resolution mechanisms. It includes specific provisions required under UAE legislation regarding local ownership, corporate governance, and business operations, while protecting both partners' interests through clearly defined rights and obligations.

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What is a 80 20 Partnership Agreement?

This 80/20 Partnership Agreement is a fundamental document for establishing business partnerships in the UAE where specific ownership structures are required or desired. It is particularly relevant for foreign investors seeking to establish a presence in the UAE mainland (outside free zones) where local partnership requirements may apply. The agreement comprehensively addresses all aspects of the partnership relationship, including capital contributions, profit sharing, management control, and operational matters, while ensuring compliance with UAE Commercial Companies Law and related regulations. This document is essential for businesses requiring local partnership arrangements and provides a framework for long-term collaboration while protecting both partners' interests through clear governance structures and risk allocation mechanisms.

What sections should be included in a 80 20 Partnership Agreement?

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

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

3. Definitions: Key terms used throughout the agreement including Partnership, Business, Territory, etc.

4. Partnership Structure: Details of the 80/20 partnership structure, legal form, and registration requirements

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

6. Profit and Loss Distribution: 80/20 profit sharing arrangement, loss allocation, and distribution mechanics

7. Management and Control: Decision-making processes, voting rights, and management responsibilities

8. Partner Rights and Obligations: Detailed rights and duties of each partner, including non-compete and confidentiality

9. Business Operations: Day-to-day management, operational procedures, and business policies

10. Banking and Financial Matters: Banking arrangements, accounting procedures, and financial reporting requirements

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

12. Exit Provisions: Procedures for partner exit, including buyout mechanisms and valuation methods

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law

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

What sections are optional to include in a 80 20 Partnership Agreement?

1. Intellectual Property Rights: Required when the partnership involves significant IP assets or development

2. Employee Matters: Needed when the partnership will have employees or specific employment policies

3. Insurance: Required when specific insurance coverage is necessary for the business

4. Real Estate: Include when the partnership owns or leases property

5. Technology and Systems: Necessary when the partnership relies on specific technology or systems

6. Environmental Compliance: Required for businesses with environmental impact or regulations

7. Islamic Finance Compliance: Include when partners require Shariah-compliant arrangements

What schedules should be included in a 80 20 Partnership Agreement?

1. Schedule 1: Business Plan: Detailed business plan including objectives, strategy, and financial projections

2. Schedule 2: Initial Capital Contributions: Detailed breakdown of each partner's initial capital contributions

3. Schedule 3: Profit Distribution Mechanism: Detailed procedures for calculating and distributing profits

4. Schedule 4: Management Structure: Organizational chart and detailed management responsibilities

5. Schedule 5: Key Performance Indicators: Metrics for measuring partnership and business performance

6. Schedule 6: Partner Contact Details: Complete contact information for all partners and key representatives

7. Schedule 7: Assets Register: List of partnership assets and their ownership status

8. Appendix A: Required Licenses and Permits: List of necessary business licenses and regulatory permits

9. Appendix B: Partner Resolutions: Key resolutions and decisions made by partners

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

Manufacturing

Construction

Trading

Technology

Healthcare

Education

Real Estate

Hospitality

Consulting

Industrial

Logistics

Media and Entertainment

Relevant Teams

Legal

Corporate Affairs

Finance

Compliance

Business Development

Operations

Strategy

Risk Management

Commercial

Investment

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Corporate Lawyer

Business Development Manager

Chief Financial Officer

Operations Director

Compliance Officer

Investment Manager

Partnership Manager

Commercial Director

Company Secretary

Board Member

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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