Partnership Deed/ Agreement

Before starting a partnership business, the partners need to come to a common understanding. A typical partnership agreement would include

• Capital - the amount of capital put in by each partner, which will include both money and equipment and other capital goods.
• The role and responsibilities of each partner.
• The apportionment of profits and losses. Is this equal (50/50) and if not how is this split and why?
• The amount of drawing allowed to each partner.
• The salary, if nay, to be paid to any partner.
• There interest, if any, to be allowed on capital and charged on drawing.
• What are the arrangements in case of dissolving the company, including the retirement, death or long-term illness of a partner.
• Management of the finances, bank account, signing of cheques and orders
• Hours of work and holidays allocated.
• Arrangement for arbitration in the event of disagreement.