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Partnership Agreement Profit Sharing for Indonesia

Partnership Agreement Profit Sharing Template for Indonesia

This Partnership Agreement with Profit Sharing is a comprehensive legal document governed by Indonesian law that establishes the terms and conditions for a business partnership between two or more parties. The agreement details the structure of profit sharing, capital contributions, management responsibilities, and operational procedures while ensuring compliance with Indonesian Commercial Code and relevant business regulations. It includes specific provisions for financial reporting, dispute resolution mechanisms, and partnership governance, all aligned with Indonesian legal requirements and business practices.

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What is a Partnership Agreement Profit Sharing?

The Partnership Agreement Profit Sharing document is essential for businesses establishing formal collaborative relationships in Indonesia. It is particularly relevant when two or more parties wish to combine their resources, expertise, or capital while maintaining a clear structure for sharing profits and responsibilities. This document type is commonly used in various business sectors across Indonesia and must comply with the Indonesian Civil Code, Commercial Code, and relevant business regulations. The agreement typically includes detailed sections on capital contributions, profit-sharing mechanisms, management rights, and operational procedures. It's especially important for foreign investors partnering with Indonesian entities, as it needs to address both local legal requirements and international business standards. The document should be drafted with consideration of specific Indonesian partnership laws and may require review by local legal experts to ensure full compliance with Indonesian business regulations.

What sections should be included in a Partnership Agreement Profit Sharing?

1. Parties: Identification and details of all partnership parties, including their legal status and registered addresses

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

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Partnership Structure: Legal form of partnership, ownership percentages, and management structure

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

6. Profit Sharing Mechanism: Detailed framework for calculating and distributing profits among partners

7. Management and Control: Decision-making processes, voting rights, and management responsibilities

8. Rights and Obligations: Specific duties and entitlements of each partner

9. Financial Management: Accounting principles, financial reporting requirements, and audit provisions

10. Term and Termination: Duration of partnership and conditions for termination

11. Dispute Resolution: Procedures for resolving conflicts between partners

12. Governing Law: Confirmation of Indonesian law application and jurisdiction

13. General Provisions: Standard clauses including notices, amendments, and severability

What sections are optional to include in a Partnership Agreement Profit Sharing?

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

2. Non-Competition: Include when partners need to be restricted from competing activities

3. Foreign Investment Provisions: Necessary when one or more partners are foreign entities

4. Employee Management: Include when the partnership will have direct employees

5. Insurance Requirements: Required for partnerships with significant physical assets or operational risks

6. Environmental Compliance: Necessary for partnerships in industries with environmental impact

7. Technology and Data Protection: Include when partnership involves digital assets or personal data processing

8. Islamic Banking Compliance: Required when partnership needs to comply with Sharia principles

What schedules should be included in a Partnership Agreement Profit Sharing?

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

2. Schedule B - Profit Sharing Formula: Mathematical formulas and examples of profit calculation and distribution

3. Schedule C - Business Plan: Initial business plan and financial projections

4. Schedule D - Management Structure: Organizational chart and detailed management responsibilities

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

6. Schedule F - Partner Representatives: Named representatives and their authority levels

7. Appendix 1 - Required Licenses: Copies of business licenses and permits

8. Appendix 2 - Partner Identification Documents: Official documentation of partner identities and registrations

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

Agriculture

Mining

Retail

Professional Services

Real Estate

Tourism and Hospitality

Financial Services

Energy

Infrastructure Development

E-commerce

Food and Beverage

Healthcare

Education

Relevant Teams

Legal

Corporate Affairs

Finance

Business Development

Commercial

Compliance

Operations

Investment

Strategy

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Director

Chief Financial Officer

Legal Counsel

Partnership Manager

Business Owner

Corporate Lawyer

Investment Manager

Operations Director

Finance Director

Compliance Officer

Company Secretary

Commercial Director

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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