Ƶ

60 40 Partnership Agreement for Saudi Arabia

60 40 Partnership Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes a partnership structure with a 60-40 profit-sharing arrangement between partners. This document outlines the terms and conditions of the partnership, including capital contributions, management responsibilities, profit and loss distribution, operational procedures, and dispute resolution mechanisms. It ensures compliance with both Saudi Companies Law and Sharia principles while providing a clear framework for the partnership's operation, decision-making processes, and partner obligations.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
60 40 Partnership Agreement

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a 60 40 Partnership Agreement?

The 60 40 Partnership Agreement is a critical legal document used in Saudi Arabia when establishing business partnerships where partners agree to a specific 60-40 profit-sharing ratio. This arrangement is common in situations where one partner contributes greater capital, expertise, or resources and therefore receives a larger share of profits. The document must comply with Saudi Companies Law, Ministry of Commerce regulations, and Sharia principles, making it suitable for both local and foreign investors (subject to foreign investment restrictions). It includes comprehensive details about capital contributions, management rights, profit distribution mechanisms, partner obligations, and exit procedures. This type of agreement is particularly relevant for new business ventures, joint projects, or restructuring existing partnerships in Saudi Arabia.

What sections should be included in a 60 40 Partnership Agreement?

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

2. Background: Context of the partnership formation and brief description of the business purpose

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

4. Partnership Structure and Purpose: Legal structure of the partnership and detailed description of its business objectives

5. Capital Contributions: Details of initial and any subsequent capital contributions by partners

6. Profit and Loss Distribution: Specific mechanism for 60-40 profit sharing and loss allocation

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

8. Partners' Rights and Obligations: Detailed rights, responsibilities, and duties of each partner

9. Business Operations: Day-to-day operational procedures and business management

10. Banking and Financial Matters: Banking arrangements, accounting procedures, and financial management

11. Term and Termination: Duration of partnership and circumstances for termination

12. Withdrawal and Transfer of Interest: Procedures for partner withdrawal and transfer of partnership interests

13. Dispute Resolution: Mechanisms for resolving disputes between partners

14. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction

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

What sections are optional to include in a 60 40 Partnership Agreement?

1. Non-Competition and Confidentiality: Restrictions on competitive activities and protection of confidential information - used when partners have other business interests

2. Intellectual Property Rights: Ownership and usage of IP - included when the partnership involves significant IP assets

3. Foreign Ownership Provisions: Special provisions required for foreign partners - included when any partner is non-Saudi

4. Shariah Compliance: Detailed provisions ensuring compliance with Islamic law - included when specifically required by partners or nature of business

5. Employment of Partners: Terms for partners' employment in the business - used when partners will take active roles

6. Insurance and Liability: Special insurance requirements and liability allocation - included for high-risk businesses

7. Exit Strategy: Detailed procedures for business sale or IPO - included for larger partnerships with potential exit plans

What schedules should be included in a 60 40 Partnership Agreement?

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

2. Schedule 2 - Business Plan: Initial business plan and strategic objectives

3. Schedule 3 - Management Structure: Detailed organizational structure and management responsibilities

4. Schedule 4 - Profit Distribution Mechanism: Detailed calculations and timing for the 60-40 profit distribution

5. Schedule 5 - Partner Information: Detailed information about each partner including contact details and representatives

6. Appendix A - Required Licenses: Copies of business licenses and permits

7. Appendix B - Property Details: Details of any property owned or leased by the partnership

8. Appendix C - Key Contracts: List and copies of important contracts and agreements

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

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions





































Clauses









































Relevant Industries

Manufacturing

Retail

Professional Services

Real Estate

Technology

Healthcare

Construction

Trading

Hospitality

Education

Consulting

Import/Export

Financial Services

Transportation and Logistics

Relevant Teams

Legal

Finance

Corporate Governance

Compliance

Risk Management

Business Development

Operations

Investment

Strategy

Executive Leadership

Relevant Roles

Chief Executive Officer

Managing Director

Business Owner

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Business Development Manager

Company Secretary

Partnership Manager

Investment Manager

Compliance Officer

Risk Manager

Finance Director

Operations Director

Board Member

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

Find the exact document you need

Industrial Partner Contract

A Saudi Arabian law-governed agreement establishing industrial partnership terms, including operational, financial, and regulatory compliance requirements.

find out more

Venture Capital General Partner Agreement

A Saudi Arabian agreement establishing the General Partner's rights and obligations in managing a venture capital fund, ensuring compliance with local laws and Shariah principles.

find out more

Trading Partner Agreement

A Shariah-compliant agreement under Saudi Arabian law that establishes terms and conditions for ongoing trading relationships between commercial partners.

find out more

Alliance Agreement

A strategic partnership agreement governed by Saudi Arabian law that establishes terms for collaboration between multiple entities while ensuring compliance with local regulations and Sharia principles.

find out more

Software Channel Partner Agreement

A Saudi Arabian law-governed agreement establishing terms for software distribution through channel partners, including licensing, territorial rights, and compliance requirements.

find out more

Memorandum Of Understanding Between Partners

A Saudi Arabian law-governed preliminary agreement establishing partnership framework and cooperation principles between parties, aligned with local commercial laws and Sharia requirements.

find out more

Agreement For Partnership Deed

A Saudi Arabian legal agreement establishing a business partnership and defining partner relationships, rights, and obligations under Saudi law and Sharia principles.

find out more

Software Implementation Partner Agreement

A Saudi Arabian law-governed agreement between a software provider and implementation partner for software deployment and integration services.

find out more

Real Estate Joint Venture Proposal

Template for real estate joint venture partnerships in Saudi Arabia, compliant with local regulations and Sharia principles.

find out more

Proposal For Joint Venture Letter

A Saudi Arabian law-governed proposal letter outlining key terms and structure for establishing a joint venture between parties, serving as a foundation for detailed negotiations.

find out more

Petrol Pump Partnership Agreement

A Saudi Arabian law-governed agreement establishing a partnership for operating a petrol station, including operational, financial, and regulatory requirements.

find out more

Partnership Agreement Proposal

A legal document under Saudi Arabian law proposing terms and conditions for establishing a business partnership, including structure, contributions, and responsibilities.

find out more

Ending Partnership Agreement

A Saudi Arabian law-governed agreement that formally dissolves a business partnership, outlining asset distribution and settlement terms in compliance with local regulations.

find out more

Simple Collaboration Agreement

A Saudi law-governed agreement establishing terms for business collaboration between parties, ensuring compliance with local regulations and Sharia principles.

find out more

Reseller Partnership Agreement

A Saudi Arabian law-governed agreement establishing a reseller partnership between supplier and distributor, defining commercial terms and territorial rights.

find out more

Non Binding Partnership Agreement

A non-binding agreement outlining proposed partnership terms under Saudi Arabian law, suitable for parties exploring potential business collaboration opportunities.

find out more

Start Up Business Partnership Agreement

A Saudi Arabian law-governed agreement establishing partnership terms and operational framework for startup ventures, aligned with local business regulations and Vision 2030.

find out more

Simple Partnership Contract

A foundational agreement establishing a business partnership between two or more parties under Saudi Arabian law, outlining key partnership terms and responsibilities.

find out more

Joint Venture Partnership Agreement

A Saudi Arabian law-governed agreement establishing a joint venture partnership, detailing business collaboration terms and ensuring regulatory compliance.

find out more

Deed Of Partnership Between Two Partners

A legal document under Saudi Arabian law establishing a partnership between two parties, outlining their rights, obligations, and business relationship terms.

find out more

Distributorship Contract

A Saudi Arabian law-governed agreement establishing terms and conditions for product distribution between a supplier and distributor within the Kingdom.

find out more

Land Partnership Agreement

A Saudi Arabian agreement establishing partnership terms for land ownership and development, governed by local law and Sharia principles.

find out more

Authorized Reseller Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions between a supplier and authorized reseller for product distribution.

find out more

Software Distributor Agreement

A Saudi Arabian law-governed agreement establishing terms for software distribution rights, obligations, and commercial relationships between software suppliers and distributors.

find out more

Social Media Partnership Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for social media partnerships, content creation, and digital marketing collaboration.

find out more

Partnership Deed

A legal document under Saudi Arabian law establishing a partnership between two or more parties, defining their rights, obligations, and business relationship.

find out more

Simple General Partnership Agreement

A Saudi Arabian law-governed agreement establishing a general partnership, defining partners' rights, obligations, and operational framework in accordance with local regulations.

find out more

Partnership Agreement Termination Letter

A formal document used to terminate business partnerships in Saudi Arabia, complying with Saudi Commercial Law and outlining dissolution terms and settlements.

find out more

Limited Company Partnership Agreement

A Saudi Arabian law-governed agreement establishing a Limited Liability Company partnership, defining partner relationships, capital contributions, and management structure.

find out more

Collaboration Partnership Agreement

A Saudi law-governed agreement establishing terms and conditions for collaborative partnerships between multiple parties, ensuring compliance with local regulations and Sharia principles.

find out more

Vacation Home Partnership Agreement

A Saudi Arabian law-governed agreement establishing shared ownership and management terms for a vacation property, including usage rights and partner obligations.

find out more

Technology Partnership Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for technology partnerships, including IP rights, data protection, and technical collaboration frameworks.

find out more

Strategic Technology Partnership Agreement

A Saudi law-governed agreement template for strategic technology partnerships, incorporating local regulatory requirements and Sharia compliance.

find out more

Startup Partnership Agreement

A Saudi Arabian law-governed agreement establishing partnership terms and regulations for startup ventures, including capital structure, management rights, and operational framework.

find out more

Software Partnership Agreement

A Saudi Arabian law-governed agreement establishing terms for software partnership, including development, licensing, and operational collaboration.

find out more

Software Partner Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for software partnership arrangements, including licensing, distribution, and revenue sharing.

find out more

Shareholders Agreement Joint Venture

A Saudi law-governed agreement establishing terms and conditions between joint venture shareholders, including governance, operations, and exit provisions.

find out more

Revenue Share Partnership Agreement

A Saudi Arabian law-governed agreement establishing terms for revenue sharing partnerships, including profit distribution mechanics and operational framework.

find out more

Restaurant Profit Sharing Agreement

A Saudi Arabian law-governed agreement establishing profit-sharing arrangements and operational terms between parties in a restaurant business venture.

find out more

Sales Cooperation Agreement

A Saudi Arabian law-governed agreement establishing terms for cooperative sales activities between parties, including territory rights, commissions, and compliance requirements.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it