Company Partnership Agreement for United Arab Emirates

Company Partnership Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes and regulates the relationship between two or more parties forming a business partnership. This agreement outlines the terms and conditions of the partnership, including capital contributions, profit sharing, management rights, and operational procedures, while ensuring compliance with UAE Federal Law No. 2 of 2015 (Commercial Companies Law) and other relevant UAE regulations. The document addresses key aspects such as partner responsibilities, decision-making processes, dispute resolution mechanisms, and exit provisions, tailored to meet both UAE legal requirements and the specific needs of the partnership.

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What is a Company Partnership Agreement?

The Company Partnership Agreement serves as the foundational document for establishing and governing business partnerships in the United Arab Emirates. This essential legal instrument is designed to comply with UAE Federal Law No. 2 of 2015 (Commercial Companies Law) and subsequent amendments, including provisions for foreign ownership under Federal Decree-Law No. 26 of 2020. The agreement is typically used when two or more parties wish to formalize their business relationship, whether in mainland UAE or in free zones, and requires careful consideration of local regulatory requirements. It outlines critical aspects such as capital contributions, profit-sharing arrangements, management structures, and partner obligations, while incorporating necessary provisions for dispute resolution under UAE jurisdiction. The document is particularly important given the UAE's dynamic business environment and can be customized to accommodate various business models while maintaining compliance with local laws and regulations.

What sections should be included in a Company Partnership Agreement?

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

2. Background: Context of the partnership formation and brief description of partners' intention to collaborate

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Partnership Structure: Legal form of partnership, business activities, and registered office details

5. Capital Contributions: Details of initial and subsequent capital contributions, valuation of non-cash contributions

6. Profit and Loss Sharing: Distribution of profits and losses, dividend policy, and capital accounts

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

8. Partners' Rights and Obligations: Detailed responsibilities, duties, and rights of all partners

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

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

11. Transfer of Partnership Interests: Procedures for transferring partnership shares, right of first refusal

12. Term and Termination: Duration of partnership, termination events, and procedures

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

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

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

1. Intellectual Property Rights: Include when partners bring existing IP or the partnership will develop new IP

2. Non-Competition: Include when partners need to be restricted from competing activities

3. Additional Capital Calls: Include when there's likelihood of requiring additional capital investments

4. Tag-Along and Drag-Along Rights: Include for larger partnerships with potential future sale prospects

5. Executive Committee: Include for larger partnerships requiring formal management structure

6. Branch Offices: Include if partnership plans to operate multiple locations

7. Shariah Compliance: Include if partnership needs to operate under Islamic finance principles

8. Free Zone Specific Provisions: Include if partnership is established in a UAE free zone

What schedules should be included in a Company Partnership Agreement?

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

2. Schedule 2: Business Plan: Initial business plan and projected financials

3. Schedule 3: Management Structure: Organizational chart and management responsibilities

4. Schedule 4: Property Details: Details of any property owned or leased by the partnership

5. Schedule 5: Intellectual Property: List of IP assets brought into or developed by the partnership

6. Appendix A: Partner Information: Detailed information about each partner including contact details

7. Appendix B: Required Licenses: List of licenses and permits required for operation

8. Appendix C: Banking Arrangements: Details of bank accounts and authorized signatories

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

Professional Services

Real Estate

Trading

Manufacturing

Technology

Financial Services

Healthcare

Retail

Construction

Hospitality

Consulting

Import/Export

Logistics

Education

Media and Entertainment

Relevant Teams

Legal

Corporate Affairs

Compliance

Finance

Executive Leadership

Business Development

Risk Management

Operations

Strategy

Investment

Corporate Governance

Administrative

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Corporate Lawyer

Business Development Manager

Chief Financial Officer

Company Secretary

Compliance Officer

Partnership Manager

Investment Manager

Operations Director

Risk Manager

Strategy Director

General Counsel

Managing Partner

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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