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Partnership Agreement Between 3 Parties for Indonesia

Partnership Agreement Between 3 Parties Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes and regulates a partnership between three distinct parties. This agreement outlines the terms and conditions of the partnership, including capital contributions, profit-sharing arrangements, management responsibilities, and operational procedures. It ensures compliance with Indonesian regulations, particularly the Civil Code (KUHPerdata) and Commercial Code (KUHD), while addressing specific requirements for multi-party business relationships. The document includes provisions for decision-making processes, dispute resolution mechanisms, and exit strategies tailored to the Indonesian legal framework.

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What is a Partnership Agreement Between 3 Parties?

The Partnership Agreement Between 3 Parties is a crucial legal instrument used in Indonesian business contexts where three entities wish to combine their resources, expertise, or market access for a common business venture. This document is particularly relevant in scenarios involving local-foreign collaborations, joint ventures, or strategic alliances under Indonesian law. It addresses key aspects required by Indonesian regulations, including capital investment rules, foreign ownership restrictions, and local business requirements. The agreement typically covers comprehensive operational frameworks, risk allocation, profit-sharing mechanisms, and governance structures, while ensuring compliance with Indonesian Civil Code and Commercial Code provisions. It's commonly used in various sectors from manufacturing to services, especially where complementary capabilities from multiple parties are needed for business success.

What sections should be included in a Partnership Agreement Between 3 Parties?

1. Parties: Detailed identification of all three partners, including full legal names, registration numbers, and addresses

2. Background: Context of the partnership formation, business objectives, and intention of the parties

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Partnership Formation and Term: Official establishment of the partnership, commencement date, and duration

5. Business of the Partnership: Detailed description of the partnership's business activities and scope

6. Capital Contributions: Initial and ongoing capital contributions from each partner

7. Profit and Loss Sharing: Distribution of profits and allocation of losses among partners

8. Management and Decision Making: Governance structure, voting rights, and decision-making processes

9. Partner Rights and Obligations: Detailed responsibilities and rights of each partner

10. Banking and Financial Records: Financial management, accounting practices, and banking arrangements

11. Meetings and Resolutions: Procedures for partner meetings and passing resolutions

12. Restrictions on Partners: Non-compete, confidentiality, and other restrictive covenants

13. Addition and Withdrawal of Partners: Procedures for admitting new partners or handling partner withdrawals

14. Termination: Circumstances and procedures for partnership termination

15. Dispute Resolution: Procedures for resolving disputes between partners

16. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction

17. General Provisions: Miscellaneous legal provisions including notices, amendments, and severability

What sections are optional to include in a Partnership Agreement Between 3 Parties?

1. Intellectual Property Rights: Required when the partnership involves creation, use, or licensing of intellectual property

2. Employee Management: Needed when the partnership will have employees or shared staff

3. Foreign Investment Provisions: Required when any partner is a foreign entity or involves foreign investment

4. Property and Asset Management: Necessary when the partnership owns or manages significant physical assets

5. Insurance: Required when specific insurance coverage needs to be maintained

6. Environmental Compliance: Needed for partnerships operating in environmentally sensitive industries

7. Technology and Data Protection: Required when the partnership involves significant IT systems or personal data processing

8. Export/Import Provisions: Necessary for partnerships engaged in international trade

What schedules should be included in a Partnership Agreement Between 3 Parties?

1. Schedule 1 - Capital Contributions: Detailed breakdown of each partner's initial and committed capital contributions

2. Schedule 2 - Profit Sharing Ratios: Specific percentages and calculations for profit and loss distribution

3. Schedule 3 - Business Plan: Initial business plan and strategic objectives of the partnership

4. Schedule 4 - Partner Representatives: Named representatives and their authority levels for each partner

5. Schedule 5 - Assets Register: List of partnership assets and their ownership status

6. Schedule 6 - Deed of Adherence: Template for admitting new partners

7. Appendix A - Operating Procedures: Detailed day-to-day operational procedures and policies

8. Appendix B - Required Licenses: List of required business licenses and permits

9. Appendix C - Key Performance Indicators: Agreed performance metrics and targets

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions








































Clauses









































Relevant Industries

Manufacturing

Technology

Real Estate

Retail

Professional Services

Agriculture

Mining

Construction

Healthcare

Education

Financial Services

Tourism and Hospitality

Logistics and Transportation

Energy and Resources

E-commerce

Relevant Teams

Legal

Corporate Affairs

Business Development

Finance

Compliance

Operations

Strategy

Commercial

Risk Management

Investment

International Business

Mergers & Acquisitions

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Business Development Manager

Chief Financial Officer

Corporate Secretary

Partnership Manager

Operations Director

Investment Manager

Compliance Officer

Strategy Director

Commercial Director

Joint Venture Manager

Corporate Lawyer

Risk Manager

Industries








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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