LLC Business Partnership Agreement Template for Indonesia

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Key Requirements PROMPT example:

LLC Business Partnership Agreement

"I need an LLC Business Partnership Agreement for a technology joint venture in Indonesia between our local software company and a Singapore-based tech investor, with operations starting March 2025, including specific provisions for intellectual property protection and technology transfer arrangements."

Document background
The LLC Business Partnership Agreement is a crucial document used when establishing a formal business partnership under Indonesian law through a Limited Liability Company (PT) structure. This document is essential when two or more parties, whether local or foreign, wish to formalize their business relationship while operating within Indonesia's legal framework. The agreement must comply with Law No. 40 of 2007 on Limited Liability Companies and related regulations, including foreign investment restrictions where applicable. It covers vital aspects such as capital structure, management rights, profit sharing, decision-making processes, and dispute resolution mechanisms. The document is particularly important in Indonesia's business environment, where clear partnership terms and compliance with local regulations are crucial for successful business operations.
Suggested Sections

1. Parties: Identification of all partnership parties, including their complete legal names, registration numbers, and addresses

2. Background: Context of the partnership formation, business objectives, and intention of the parties

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

4. Partnership Structure: Legal form of the partnership, ownership percentages, and corporate structure

5. Capital Contributions: Details of initial and subsequent capital contributions from each partner

6. Business Scope: Defined scope of partnership business activities and limitations

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

8. Rights and Obligations: Detailed rights and responsibilities of each partner

9. Profit and Loss Distribution: Formula and procedures for distributing profits and losses

10. Transfer of Interests: Rules and restrictions regarding the transfer of ownership interests

11. Financial Management: Financial reporting, accounting practices, and audit requirements

12. Meetings and Resolutions: Procedures for partner meetings and passing resolutions

13. Confidentiality: Protection of confidential information and trade secrets

14. Term and Termination: Duration of partnership and grounds for termination

15. Dispute Resolution: Methods and procedures for resolving disputes between partners

16. Governing Law: Specification of Indonesian law as governing law and jurisdiction

17. General Provisions: Miscellaneous legal provisions including notices, amendments, and severability

Optional Sections

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

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

3. Employee Matters: Necessary when the partnership involves significant employee management or transfer

4. Foreign Investment Provisions: Required when any partner is a foreign entity

5. Environmental Compliance: Include for businesses with environmental impact considerations

6. Related Party Transactions: Include when partners have other business interests that may interact with the partnership

7. Force Majeure: Optional clause defining circumstances beyond parties' control that may affect performance

8. Insurance: Include when specific insurance requirements need to be maintained by the partnership

Suggested Schedules

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

2. Schedule B - Business Plan: Initial business plan and strategic objectives of the partnership

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

4. Schedule D - Profit Distribution Formula: Detailed calculations and timing for profit/loss distribution

5. Schedule E - Reserved Matters: List of decisions requiring special approval or unanimous consent

6. Appendix 1 - Corporate Documents: Copies of relevant corporate registration documents and licenses

7. Appendix 2 - Shareholder Particulars: Detailed information about each partner's corporate structure and ownership

8. Appendix 3 - Asset Register: List of assets contributed to or 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

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Real Estate

Mining

Agriculture

Retail

Financial Services

Construction

Healthcare

Education

Tourism

Transportation

Energy

Telecommunications

Professional Services

E-commerce

Relevant Teams

Legal

Finance

Corporate Affairs

Compliance

Business Development

Risk Management

Operations

Corporate Governance

Investment

Strategy

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Chief Legal Officer

Corporate Secretary

Business Development Director

Investment Manager

Compliance Officer

Company Director

Board Member

General Counsel

Partnership Manager

Corporate Lawyer

Finance Director

Operations Director

Risk 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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