Partnership Deed Online Template for Saudi Arabia

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Key Requirements PROMPT example:

Partnership Deed Online

"I need a Partnership Deed Online for a technology consulting firm in Saudi Arabia between three partners (two Saudi nationals and one British national), with initial capital of SAR 1,000,000 and specific provisions for intellectual property protection and profit sharing based on both capital contribution and active involvement in the business."

Document background
The Partnership Deed Online is a fundamental legal document used in Saudi Arabia when two or more parties wish to formalize their business relationship and establish a partnership entity. This document is essential for compliance with Saudi Companies Law and must be drafted in accordance with both civil law requirements and Islamic Shariah principles. It becomes necessary when partners want to establish clear legal frameworks for their business venture, defining capital contributions, profit-sharing ratios, management responsibilities, and dispute resolution mechanisms. The deed must address specific Saudi Arabian regulatory requirements, including partner nationality restrictions, commercial registration procedures, and Saudization requirements where applicable. It serves as the foundational document for the partnership's legal existence and operations within the Kingdom.
Suggested Sections

1. Parties: Identification of all partners, including full legal names, addresses, and nationality details as required by Saudi law

2. Background: Context of the partnership formation, business objectives, and confirmation of Sharia compliance

3. Definitions: Key terms used throughout the deed, including Arabic legal terms and their English equivalents where applicable

4. Partnership Name and Details: Official name of the partnership, registered address, and business activities permitted

5. Capital Contribution: Details of initial capital contributions from each partner, including valuation of non-cash contributions

6. Profit and Loss Sharing: Distribution ratio of profits and losses among partners, aligned with Sharia principles

7. Management Structure: Management rights, decision-making processes, and partner authorities

8. Partner Obligations: Duties, responsibilities, and commitments of each partner

9. Term and Termination: Duration of partnership and conditions for termination or dissolution

10. Dispute Resolution: Process for resolving disputes, including reference to Saudi courts and applicable arbitration

11. Governing Law: Explicit reference to Saudi law and Sharia principles as governing law

Optional Sections

1. Non-Competition: Restrictions on partners engaging in competing businesses - include when partners have other business interests

2. Intellectual Property Rights: IP ownership and usage rights - include when the partnership involves technological or creative business

3. Foreign Partner Provisions: Additional requirements for foreign partners - include when any partner is non-Saudi

4. Zakat and Tax: Specific arrangements for handling Zakat and tax obligations - include when partners have different tax statuses

5. Partnership Insurance: Insurance requirements and coverage - include for high-risk business activities

6. Employee Management: Guidelines for hiring and managing employees - include when the partnership will have employees

7. Banking Operations: Banking arrangements and signatory powers - include for partnerships with significant financial operations

Suggested Schedules

1. Capital Contribution Schedule: Detailed breakdown of each partner's capital contributions, including timing and form

2. Business Plan: Detailed business objectives, strategy, and operational plans

3. Partner Information: Detailed information about each partner including copies of IDs and required regulatory documentation

4. Assets Schedule: List and description of partnership assets, including valuations

5. Commercial Registration Documents: Copies of commercial registration certificates and licenses

6. Management Procedures: Detailed procedures for day-to-day management and decision-making

7. Shariah Compliance Certificate: Documentation confirming compliance with Islamic principles, if required

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

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Relevant Industries

Professional Services

Trading

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Technology

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Consulting

Retail

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Hospitality

Agriculture

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Relevant Teams

Legal

Compliance

Corporate Affairs

Business Development

Finance

Risk Management

Operations

Commercial

Investment

Strategy

Relevant Roles

Legal Counsel

Corporate Lawyer

Business Development Manager

Managing Partner

CEO

CFO

Compliance Officer

Company Secretary

Business Owner

Entrepreneur

Investment Manager

Commercial Director

Operations Manager

Risk Manager

Industries
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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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