Writing a simple partnership agreement

This is a checklist of topics, not a legal template. Company law in Egypt, Saudi Arabia, and the UAE differs, and registered companies have their own rules. Ask a lawyer to review your agreement, especially when large amounts or property are involved.

1. Who the partners are

Full names, ID numbers, and contact details of every partner, and the date the partnership starts.

2. What the business does

The name of the business, its activity, and its location. A clear purpose helps when partners later disagree about a new direction.

3. What each partner contributes

Money, equipment, a shop or land, or work. Write the value of each contribution and the date it is due. If a contribution is an asset, say whether the partnership owns it or only uses it.

4. How profit and losses are shared

The percentage of each partner, how often profit is divided (monthly or quarterly), how much is kept in the business, and how losses are covered. Our guide on how to split profit explains the common methods.

5. Roles and decisions

Who manages day-to-day work, who can sign contracts or spend money, and the limit above which all partners must agree. Say how decisions are taken: by majority, by percentage, or unanimously.

6. Salaries and withdrawals

Whether working partners are paid a salary, how much, and whether partners may take money before profit is divided.

7. Record-keeping and review

Where the accounts are kept, who records entries, and how often partners review and approve them. For example: "All revenue and expenses are recorded in the shared ledger within three days. Partners review and approve each month by the 10th of the next month. Every partner can see the records at any time."

8. New partners and leaving

How a new partner can join, how a leaving partner's share is valued, how quickly it is paid, and whether the other partners have the first right to buy it.

9. Death or inability of a partner

What happens to a partner's share if they die or can no longer take part, and how heirs are treated.

10. Resolving disputes

A first step such as a meeting or a trusted mediator, and then the court or arbitration that will decide.

11. Signatures

Every partner signs and dates the agreement, and each keeps a copy. Some partners also attach a photo or PDF of the signed agreement in their shared records.

This guide is general information, not legal advice.