Corporation Partnership Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Corporation Partnership Agreement

"I need a Corporation Partnership Agreement for a Saudi-owned technology services company being formed in Riyadh, with three corporate partners (all Saudi entities) contributing equal capital shares, planned to commence operations in March 2025."

Document background
The Corporation Partnership Agreement serves as the foundational document for establishing formal business partnerships in Saudi Arabia, particularly useful for ventures involving multiple corporate entities or a combination of corporate and individual partners. This document is essential when forming a new business partnership or restructuring an existing one, ensuring compliance with Saudi Companies Law and related regulations. The agreement comprehensively addresses all aspects of the partnership, including capital structure, management rights, profit distribution, and dispute resolution mechanisms. It must be carefully drafted to comply with both Sharia principles and Saudi commercial regulations, particularly regarding local ownership requirements and foreign investment restrictions. The Corporation Partnership Agreement is especially relevant in the context of Saudi Arabia's Vision 2030 economic reforms, which have created new opportunities for business partnerships across various sectors.
Suggested Sections

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

2. Background: Context of the partnership formation, business objectives, and confirmation of partners' intention to form a partnership

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation

4. Partnership Structure and Duration: Legal form of partnership, commencement date, and term of partnership

5. Capital Contributions: Details of initial and subsequent capital contributions, valuation methods, and timing

6. Ownership and Shareholding: Distribution of ownership interests and share classes if applicable

7. Management and Control: Management structure, appointment of managers, powers and limitations

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

9. Decision Making: Voting rights, quorum requirements, and decision-making processes

10. Profit and Loss Distribution: Method and timing of profit/loss allocation and distribution

11. Accounts and Records: Financial reporting requirements, accounting standards, and record-keeping obligations

12. Transfer of Interests: Rules regarding transfer of partnership interests, including pre-emptive rights

13. Partner Exit Provisions: Procedures for partner withdrawal, retirement, or death

14. Termination and Dissolution: Grounds for termination and procedures for partnership dissolution

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

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

Optional Sections

1. Foreign Investment Provisions: Required when foreign partners are involved, addressing specific requirements under Saudi foreign investment laws

2. Intellectual Property Rights: Needed when the partnership owns or develops significant IP assets

3. Non-Competition and Confidentiality: Additional restrictions on partners' activities and information handling

4. Islamic Finance Compliance: Specific provisions ensuring Sharia compliance for financial arrangements

5. Industry-Specific Regulations: Additional provisions required for regulated industries

6. Employee Matters: Required when partnership has significant employment considerations or Saudization requirements

7. Related Party Transactions: Procedures for handling transactions with related parties or affiliates

8. Tag-Along and Drag-Along Rights: Additional exit provisions for more complex ownership structures

Suggested Schedules

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

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 - Reserved Matters: List of decisions requiring special approval

5. Schedule 5 - Initial Assets: Inventory of assets contributed to or owned by the partnership

6. Schedule 6 - Accounting Principles: Specific accounting policies and procedures

7. Schedule 7 - Partner Contact Details: Complete contact information for all partners and authorized representatives

8. Appendix A - Form of Transfer Notice: Standard form for notifying transfer of partnership interests

9. Appendix B - Shareholders' Resolution Template: Standard format for partnership resolutions

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

Healthcare

Real Estate

Financial Services

Professional Services

Retail

Construction

Energy

Telecommunications

Logistics

Education

Tourism

Agriculture

Mining

Relevant Teams

Legal

Corporate Affairs

Board of Directors

Executive Leadership

Finance

Compliance

Corporate Governance

Business Development

Investment

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Chief Legal Officer

Corporate Lawyer

Chief Financial Officer

Business Development Director

Company Secretary

Board Member

Compliance Officer

Investment Manager

Partner

Shareholders

General Counsel

Legal Director

Corporate Governance Officer

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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