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Accounting Partnership Agreement Template for England and Wales

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Key Requirements PROMPT example:

Accounting Partnership Agreement

"I need an Accounting Partnership Agreement for a new three-partner firm based in London, where two partners will contribute equal capital and the third partner will join with a reduced capital contribution but equivalent profit share after 2 years; the agreement should start from March 2025."

Document background
The Accounting Partnership Agreement is essential when two or more qualified accountants decide to establish a professional practice together or when new partners join an existing accounting firm in England and Wales. This document outlines the fundamental aspects of the partnership, including capital contributions, profit sharing, management responsibilities, and professional obligations. It ensures compliance with the Partnership Act 1890, ICAEW regulations, and other relevant legislation while protecting the interests of all partners and maintaining professional standards.
Suggested Sections

1. Parties: Identification and details of all partners entering the agreement

2. Background: Context of the partnership formation and its objectives

3. Definitions: Key terms used throughout the agreement

4. Partnership Structure: Legal form, name, and place of business

5. Capital Contributions: Initial and ongoing capital requirements

6. Profit and Loss Sharing: Distribution of profits and allocation of losses

7. Management and Decision Making: Governance structure and voting rights

8. Partner Duties and Obligations: Responsibilities and commitments of partners

9. Professional Standards: Compliance with accounting regulations and ethical requirements

Optional Sections

1. Restrictive Covenants: Non-compete and confidentiality provisions for protecting business interests post-departure

2. International Practice: Rules and procedures for international operations when partnership operates across multiple jurisdictions

3. Retirement Provisions: Partner retirement process, benefits and arrangements

Suggested Schedules

1. Schedule 1: Initial Capital Contributions: Detailed breakdown of each partner's initial capital contribution

2. Schedule 2: Profit Sharing Ratios: Specific percentages or formulas for profit distribution

3. Schedule 3: Partner Details: Personal and professional information of all partners

4. Appendix A: Professional Indemnity Insurance: Insurance requirements and coverage details

5. Appendix B: Office Procedures: Standard operating procedures and administrative protocols

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Partnership Act 1890: Core legislation defining basic partnership principles, rights and duties of partners, and partnership dissolution rules

Limited Liability Partnerships Act 2000: Legislation governing LLP structure, formation requirements, member responsibilities, and financial/administrative obligations

Companies Act 2006: Relevant sections covering financial reporting requirements and registration obligations for partnerships

ICAEW Regulations: Professional body regulations covering conduct requirements, ethical guidelines, and practice management standards for accountants

Financial Services and Markets Act 2000: Legislation governing regulated activities, client money handling, and financial promotions

Income Tax Act 2007: Tax legislation covering partnership taxation and partner profit allocation

Value Added Tax Act 1994: Legislation governing VAT registration and compliance requirements for partnerships

Money Laundering Regulations 2017: Regulations covering client due diligence and record keeping requirements for accounting firms

Data Protection Act 2018 and UK GDPR: Legislation governing client data protection and information security requirements

Equality Act 2010: Legislation covering non-discrimination provisions and equal opportunities in partnership operations

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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