The Simple Partnership Contract is a fundamental legal instrument used in Indonesia to establish formal business partnerships between two or more parties. This document is particularly relevant when individuals or entities wish to combine their resources, expertise, and efforts to conduct business together while maintaining a relatively straightforward operational structure. It is designed in compliance with Indonesian Civil Code (KUHPer) requirements and includes essential elements such as capital contributions, profit-sharing arrangements, and management responsibilities. The contract is commonly used by small to medium-sized businesses, professional service providers, and local entrepreneurs who need a clear but uncomplicated legal framework for their partnership. It offers sufficient flexibility to accommodate various business types while providing adequate legal protection for all partners involved. This document is especially suitable for businesses that don't require the more complex structures of corporations or limited liability companies but still need a formal legal foundation for their operations.
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1. Parties: Identification and details of all partners entering into the partnership agreement
2. Background: Context of the partnership formation and the parties' intention to enter into the partnership
3. Definitions: Key terms used throughout the agreement and their specific meanings
4. Partnership Formation: Declaration of partnership formation and its effective date
5. Purpose and Business: Specific business objectives and scope of the partnership's activities
6. Capital Contributions: Details of initial and any agreed future capital contributions by each partner
7. Profit and Loss Sharing: Agreement on how profits and losses will be distributed among partners
8. Management and Operation: Day-to-day management structure and decision-making processes
9. Rights and Obligations: Specific rights and responsibilities of each partner
10. Duration: Term of the partnership and conditions for renewal
11. Termination: Circumstances and procedures for partnership dissolution
12. Governing Law: Specification of Indonesian law as the governing law
13. Dispute Resolution: Procedures for resolving disputes between partners
14. Signatures: Execution block for all partners to sign
1. Non-Competition: Restrictions on partners engaging in competing businesses - used when partners have other business interests
2. Intellectual Property: Ownership and use of IP within the partnership - relevant when the business involves IP assets
3. Insurance: Requirements for business insurance - important for high-risk activities
4. Admission of New Partners: Procedures for adding new partners - useful for partnerships planning future expansion
5. Death or Incapacity: Procedures following death or incapacity of a partner - important for long-term partnerships
6. Foreign Investment Provisions: Special provisions for foreign partners - required when foreign partners are involved
1. Schedule A - Capital Contributions: Detailed breakdown of each partner's initial capital contributions
2. Schedule B - Profit Sharing Ratio: Specific percentages or formulas for profit and loss distribution
3. Schedule C - Business Plan: Initial business plan and operational strategy
4. Schedule D - Partner Contact Details: Complete contact information for all partners
5. Appendix 1 - Partnership Registration Documents: Copies of official registration documents and licenses
6. Appendix 2 - Asset Inventory: List of partnership assets and their valuations
Relevant legal definitions
Clauses
Relevant Industries
Retail
Professional Services
Food and Beverage
Manufacturing
Agriculture
Creative Industries
Technology
Trading
Hospitality
Construction
Consulting
E-commerce
Traditional Markets
Handicrafts
Local Services
Relevant Teams
Legal
Commercial
Business Development
Operations
Finance
Administration
Compliance
Corporate Secretariat
Risk Management
Business Advisory
Relevant Roles
Business Owner
Managing Partner
Legal Counsel
Business Development Manager
Entrepreneur
Small Business Advisor
Contract Administrator
Partnership Manager
Legal Manager
Company Secretary
Business Consultant
Commercial Manager
Operations Manager
Finance Manager
General Manager
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