“Alone we can do so little; together we can do so much.” — Helen Keller.
Partnership with the right person can have an incredible impact on your business success and a partnership agreement in place can save you from being doomed. In the present-day scenario, it becomes an essential requirement to have a partnership agreement or a partnership deep spelling out the rights, liabilities, and other important terms between the partners to avoid any bitter and adverse litigation in the future. Since faith and trust are the hallmarks of a successful partnership, all businesses, especially small business owners, must have an agreement in place.
In this article, we are going to discuss the importance of a partnership agreement for small businesses with the help of our Business Setup Lawyers In UAE.
What is a partnership agreement?
It’s a written agreement between two or more individuals who are associated with the control and management of the company. Hire the Contract Law for assistance in drafting such a crucial document.
Why do you need it?
Small businesses have limited resources and a lot of their capital is at stake when entering into a new partnership. If this risk can be lowered by having a legally binding contract then, why not get it in writing! The agreement can keep the partners of small businesses on the same page and help resolve any potential disputes in a cost-effective manner.
Our top lawyers give the following reasons for drawing up a partnership agreement:
- It determines the roles and responsibilities of the partners.
- It determines the objectives of the company and enhances the credibility of your business.
- It establishes voting rights and the decision-making process.
- It fixes the liability of the partners.
- It specifies dispute resolution methods.
- It can avoid ambiguity and legal conflicts between partners.
- It can include a pre-emptive rights clause.
- It outlines the financial management and control of the company.
- It keeps unpleasant dissolution at bay.
- It decides the profit-sharing ratio and the capital contribution.
- It provides the procedure for an easy exit from and entry into the partnership.
Conclusion
Above all, this document provides certainty to the relationship between partners. BSB legal Consultants, the best law firm in UAE, provides a range of legal drafting services including assistance in drafting a perfect partnership agreement. Retain an experienced lawyer, contact us at info@bsb.legal or call us at +97150 8014003.