The Simple General Partnership Agreement is a crucial document used when two or more parties wish to establish a business partnership in Saudi Arabia. This agreement type is particularly suitable for small to medium-sized businesses where partners intend to be actively involved in management and are willing to accept joint and several liability for the partnership's obligations. The document must comply with the Saudi Companies Law 2015, Sharia principles, and other relevant regulations, making it essential to include specific provisions required by Saudi Arabian law. It covers all fundamental aspects of the partnership, from formation and capital contribution to management structure and profit distribution, while also addressing potential future scenarios such as partner exits or business dissolution. The agreement serves as both a legal requirement for registration purposes and a practical guideline for partnership operations.

1. Parties: Identification of all partners with full legal names, addresses, and national ID/commercial registration numbers

2. Background: Context of the partnership formation and partners' intention to establish a general partnership

3. Definitions: Key terms used throughout the agreement, ensuring consistent interpretation

4. Partnership Formation: Declaration of partnership establishment, business purpose, and official name

5. Capital Contributions: Details of initial capital contributions from each partner, including cash, assets, or services

6. Profit and Loss Sharing: Formula and mechanism for distributing profits and losses among partners

7. Management and Decision Making: Partnership management structure, voting rights, and decision-making processes

8. Partners' Rights and Obligations: Detailed responsibilities and rights of each partner, including participation in management

9. Banking and Financial Matters: Banking arrangements, accounting procedures, and financial reporting requirements

10. Transfer of Partnership Interest: Rules governing the transfer of partnership interests to other partners or third parties

11. Term and Termination: Duration of partnership and circumstances leading to termination

12. Dissolution and Liquidation: Procedures for winding up the partnership and distributing assets

13. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction of Saudi courts

14. Notices: Communication procedures between partners and formal notice requirements

15. General Provisions: Miscellaneous legal provisions including amendments, severability, and entire agreement