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Deed Of Partnership Between Two Partners for Saudi Arabia

Deed Of Partnership Between Two Partners Template for Saudi Arabia

A Deed of Partnership Between Two Partners is a fundamental legal document under Saudi Arabian law that establishes and governs the relationship between two partners in a business venture. This document, governed by the Saudi Companies Law and Sharia principles, outlines essential elements including capital contributions, profit-sharing arrangements, management responsibilities, and dispute resolution mechanisms. It serves as the founding document of the partnership, ensuring compliance with local regulations while protecting the interests of all parties involved. The deed must be executed in accordance with Saudi legal requirements and typically requires authentication by appropriate authorities.

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What is a Deed Of Partnership Between Two Partners?

The Deed Of Partnership Between Two Partners is a crucial legal instrument used in Saudi Arabia when two parties wish to formalize their business relationship through a partnership structure. This document is essential for compliance with the Saudi Companies Law and must adhere to both civil law requirements and Sharia principles. It is typically used when establishing new business ventures, formalizing existing partnerships, or restructuring business relationships. The deed contains detailed provisions regarding capital contributions, profit and loss sharing, management rights, partner obligations, and termination procedures. It requires careful drafting to ensure all regulatory requirements are met, including those from the Ministry of Commerce and relevant regulatory bodies. The document serves as the primary reference point for the partnership's operation and dispute resolution throughout its lifecycle.

What sections should be included in a Deed Of Partnership Between Two Partners?

1. Parties: Identification of partners with full legal names, addresses, and national ID/commercial registration numbers

2. Background: Brief context of the partnership formation and partners' intention to enter into the partnership

3. Definitions: Key terms used throughout the deed defined for clarity and legal certainty

4. Partnership Name and Purpose: Official name of the partnership and detailed description of business activities

5. Capital Contribution: Detailed specification of each partner's capital contribution, whether monetary or in-kind

6. Profit and Loss Distribution: Agreement on how profits and losses will be shared between partners

7. Management and Administration: Rules for partnership management, decision-making processes, and partner authorities

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

9. Banking and Financial Matters: Arrangements for banking, accounting records, and financial management

10. Duration of Partnership: Term of the partnership and conditions for renewal

11. Competition and Confidentiality: Restrictions on partners' involvement in competing businesses and confidentiality obligations

12. Termination: Circumstances and procedures for partnership termination

13. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes

14. Execution: Formal execution block for partners' signatures and official authentication

What sections are optional to include in a Deed Of Partnership Between Two Partners?

1. Islamic Finance Compliance: Section confirming compliance with Sharia principles, used when partners specifically require Islamic finance structure

2. Intellectual Property Rights: Section dealing with IP ownership and usage, needed when partnership involves significant IP assets

3. Employee Management: Section on hiring and managing employees, included when partnership will have employees

4. External Investment: Procedures for accepting external investment, included if partners anticipate future external funding

5. Insurance: Requirements for business insurance, included based on business risk profile

6. Exit Strategy: Detailed procedures for partner exit, included when partners want specific exit mechanisms

7. Force Majeure: Provisions for unforeseen circumstances, included for higher-risk business activities

What schedules should be included in a Deed Of Partnership Between Two Partners?

1. Schedule 1: Capital Contributions Detail: Detailed breakdown of each partner's capital contribution including valuation of non-cash assets

2. Schedule 2: Business Plan: Initial business plan and projected financials

3. Schedule 3: Property Schedule: List of partnership properties and assets, including leased premises

4. Schedule 4: Intellectual Property Register: Register of all IP owned or licensed by the partnership

5. Schedule 5: Partner Representatives: List of authorized representatives for each partner

6. Appendix A: Required Licenses: Copies of business licenses and permits required for operation

7. Appendix B: Banking Arrangements: Details of partnership bank accounts and authorized signatories

8. Appendix C: Financial Procedures: Detailed procedures for financial management and reporting

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





































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Relevant Industries

Retail

Manufacturing

Professional Services

Construction

Technology

Healthcare

Education

Food and Beverage

Real Estate

Consulting

Trading

Hospitality

Logistics

Financial Services

Relevant Teams

Legal

Corporate Affairs

Compliance

Finance

Risk Management

Business Development

Operations

Management

Corporate Governance

Investment

Relevant Roles

Legal Counsel

Business Development Manager

Managing Partner

CEO

CFO

Company Secretary

Compliance Officer

Corporate Lawyer

Business Owner

Entrepreneur

Financial Controller

Partnership Manager

Operations Director

Risk Manager

Investment 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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