Document background
The Internal Agreement Between Partners is a crucial document used when establishing or formalizing business partnerships in Saudi Arabia. It serves as the primary governing document for partner relationships, detailing capital contributions, profit-sharing mechanisms, management responsibilities, and operational procedures. This agreement must comply with Saudi Companies Law, Ministry of Commerce regulations, and Sharia principles, making it essential for both new partnerships and existing businesses looking to formalize their internal arrangements. The document is particularly important in the Saudi context where business relationships often combine traditional practices with modern commercial requirements. It provides clear guidelines for partner conduct, decision-making processes, and dispute resolution while ensuring all arrangements are legally enforceable under Saudi jurisdiction.
