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Partnership Agreement
I need a partnership agreement for a joint venture between two companies in the technology sector, outlining profit-sharing, decision-making processes, and responsibilities of each partner. The agreement should include a dispute resolution mechanism and a clause for potential future expansion or dissolution of the partnership.
What is a Partnership Agreement?
A Partnership Agreement creates the legal foundation for two or more people to run a business together in Qatar. It outlines how partners will share profits, make decisions, and handle responsibilities in their venture, following Qatar's Commercial Companies Law No. 11 of 2015.
Beyond just splitting profits, this agreement protects all partners by clearly defining everyone's roles, capital contributions, and exit procedures. It helps prevent future disputes by establishing rules for adding new partners, resolving conflicts, and managing daily operations - making it an essential document for any Qatari business partnership.
When should you use a Partnership Agreement?
Create a Partnership Agreement before launching any joint business venture in Qatar. This essential step protects everyone's interests from day one, especially when starting professional services firms, retail operations, or construction companies under Qatar's Commercial Companies Law.
Use this agreement when pooling resources with business partners, setting up profit-sharing arrangements, or establishing decision-making protocols. It's particularly important for family businesses, international partnerships, and ventures where partners contribute different types of assets - from capital to expertise. Having clear terms in place helps avoid costly disputes and ensures smooth business operations.
What are the different types of Partnership Agreement?
- Partnership Contract Agreement: Basic template for standard business partnerships, covering essential terms and profit sharing under Qatar's Commercial Law
- Company Partnership Agreement: More detailed version for larger companies, including governance structure and shareholder rights
- Joint Partnership Agreement: Specialized format for temporary project collaborations or joint ventures
- Mou For Business Partnership: Preliminary agreement outlining partnership intentions before formal commitments
- Business Dissolution Agreement: Handles the orderly termination of partnerships and asset distribution
Who should typically use a Partnership Agreement?
- Business Partners: Primary parties who sign and are bound by the Partnership Agreement, contributing capital, expertise, or other assets to the venture
- Legal Consultants: Qatari lawyers who draft and review agreements to ensure compliance with local commercial laws
- Business Advisors: Financial experts and accountants who help structure profit-sharing and capital contribution terms
- Ministry of Commerce Officials: Government representatives who review and register partnership agreements under Qatar's regulations
- Bank Representatives: Financial institutions that require partnership agreements for business accounts and lending purposes
How do you write a Partnership Agreement?
- Partner Details: Collect full legal names, Qatar ID numbers, and contact information for all partners
- Business Basics: Define your business scope, trading name, and primary location in Qatar
- Capital Structure: Document each partner's initial investment and agreed profit-sharing ratios
- Operational Rules: Outline decision-making processes, voting rights, and management responsibilities
- Exit Strategy: Plan procedures for partner withdrawal, business sale, or dissolution
- Documentation: Gather required licenses, commercial registration, and partner identification papers
- Digital Generation: Use our platform to create a legally-sound agreement that meets Qatar's requirements
What should be included in a Partnership Agreement?
- Partner Information: Full legal names, nationalities, and Qatar ID numbers of all partners
- Business Details: Company name, type of business, registered address, and duration of partnership
- Capital Structure: Initial contributions, profit-sharing ratios, and loss distribution formulas
- Management Rights: Decision-making authority, voting procedures, and partner responsibilities
- Financial Terms: Banking arrangements, accounting methods, and distribution schedules
- Dispute Resolution: Arbitration procedures following Qatar Commercial Law
- Exit Provisions: Partner withdrawal, succession, and business dissolution procedures
- Governing Law: Explicit reference to Qatar's Commercial Companies Law No. 11 of 2015
What's the difference between a Partnership Agreement and a Business Acquisition Agreement?
A Partnership Agreement differs significantly from a Business Acquisition Agreement in Qatar's legal framework. While both involve business relationships, their purposes and applications are distinct.
- Purpose and Duration: Partnership Agreements establish ongoing business relationships between partners who jointly run a company, while Business Acquisition Agreements facilitate one-time transactions for buying existing businesses
- Legal Structure: Partnership Agreements create new business entities under Qatar's Commercial Companies Law, whereas Acquisition Agreements transfer ownership of existing entities
- Risk Distribution: Partners share ongoing business risks and liabilities, while acquisition deals typically transfer risks from seller to buyer on a specific date
- Operational Control: Partnership Agreements define shared management responsibilities, but Acquisition Agreements focus on transferring complete control to the new owner
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