Partnership Agreement Template for Denmark

A Partnership Agreement outlines how two or more partners will run their business together in Denmark. It spells out each partner's rights, responsibilities, and share of profits or losses - much like a rulebook for your business relationship.

Under Danish business law, these agreements help prevent future disputes by clearly defining how partners make decisions, handle finances, and resolve conflicts. While not legally required for general partnerships (interessentskab), having one protects all partners and makes daily operations smoother. The agreement can cover everything from work duties and capital contributions to what happens if someone wants to leave the business.

Create a Partnership Agreement when starting any business venture with others in Denmark, especially before money starts flowing or major decisions need to be made. This agreement becomes essential for protecting everyone's interests in businesses like professional services, retail shops, or consulting firms.

Time-sensitive moments that call for a Partnership Agreement include bringing on new partners, expanding into new markets, or making significant investments. Danish law gives partners broad liability for each other's actions, so having clear written terms about decision-making authority, profit sharing, and exit procedures helps prevent costly disputes and keeps operations running smoothly.

• Simple Partnership Agreement: Basic version for small businesses with straightforward operations and equal partner shares
• General Partnership Agreement: Comprehensive template for standard business partnerships with detailed operational terms
• Limited Partnership Agreement: Specialized format for partnerships with both active and passive investors (kommanditselskab structure)
• Standard Partnership Agreement: Balanced template with moderate complexity, suitable for most Danish businesses
• Distributorship Contract: Modified partnership structure specifically for distribution businesses and sales partnerships

• Business Partners: The primary parties who sign and are bound by the Partnership Agreement, sharing profits, losses, and management responsibilities
• Corporate Lawyers: Draft and review agreements to ensure compliance with Danish partnership laws and protect clients' interests
• Business Advisors: Help structure the partnership terms and provide guidance on financial and operational aspects
• Accountants: Assist in defining profit-sharing arrangements and tax implications under Danish regulations
• Bank Representatives: Often need to review the agreement when setting up business accounts or providing financing
• Danish Business Authority: Reviews partnership structures for registration and compliance purposes

• Partner Information: Collect full legal names, addresses, and CVR numbers of all partners involved
• Business Details: Define your company name, main business activities, and registered address
• Capital Contributions: Document each partner's initial investments, both monetary and non-monetary
• Profit Distribution: Agree on how profits and losses will be shared among partners
• Management Structure: Outline decision-making processes and voting rights
• Exit Strategy: Plan procedures for partner retirement, death, or voluntary departure
• Template Selection: Use our platform to generate a legally-sound agreement that includes all mandatory Danish requirements
• Internal Review: Have all partners carefully review the draft before signing

• Partner Details: Full legal names, addresses, and CVR numbers of all participating partners
• Business Purpose: Clear description of the partnership's main activities and objectives
• Capital Structure: Initial contributions, profit-sharing ratios, and loss allocation terms
• Management Rights: Decision-making procedures and voting thresholds for key business matters
• Financial Provisions: Banking arrangements, accounting methods, and tax reporting obligations
• Exit Mechanisms: Procedures for partner withdrawal, death, or business sale
• Dispute Resolution: Danish arbitration or court jurisdiction preferences
• GDPR Compliance: Data handling procedures and privacy protection measures
• Signature Block: Space for dated signatures with witness requirements

A Partnership Agreement differs significantly from a Consortium Agreement, though both involve multiple parties working together. Let's explore the key differences:

• Legal Structure: Partnership Agreements create a single business entity where partners share profits and losses directly, while Consortium Agreements temporarily unite separate companies for specific projects without forming a new entity
• Duration: Partnerships typically operate indefinitely until dissolved, whereas consortiums usually exist for a defined project period
• Liability Scope: Partners share unlimited liability for business debts under Danish law, while consortium members maintain separate legal identities and limited cross-liability
• Tax Treatment: Partnerships are tax-transparent with profits taxed at partner level, but consortium members file separate tax returns
• Daily Operations: Partnerships involve shared management of ongoing business activities, while consortiums focus on coordinating specific project contributions from independent members