Partnerships can be complex depending on the size of the activity and the number of partners involved. The creation of a partnership agreement is a necessity to reduce the potential for complexity or conflict between partners within this type of business structure. A partnership agreement is the legal document that determines how a business is managed and describes the relationship between the different partners. An alternative to arbitration is to refer the dispute to the courts, but in the case of a partnership, litigation between partners could attract the public and harm the company – arbitration offers a confidential way of dealing with major disputes. If one of the partners withdraws, the others may decide to close the business instead of paying the outgoing partner`s share, and clause 18 covers this possibility. Please note that the agreement expressly provides that no partner can unilaterally dissolve the partnership. Often, but not always, a partnership will retain a portion of its profits to cover each partner`s expected income tax commitments and to ensure that the partnership accountant can settle income tax obligations with Income Customs. Article 6.4 provides that if the tax debt of a single partner is lower than expected, the balance of the amount reserved will be repaid to that partner. Similarly, when a partner receives a tax reduction for the profits of associates, he is required to repay this discount to the company. The interest rate to be included is the interest rate to be paid by the company to each partner on the social capital. Since partners often borrow from a bank, it is customary for the interest rate under a partnership agreement to be slightly higher than the interest rate each partner must pay to his bank. If, under item 5.2, the costs that could be borne by the partners but which should not be considered as partnership expenses, some adjustment to Clause 5.2 may be necessary. Indeed, it is unlikely that a partnership agreement will cover all issues that might arise in the context of a partnership activity and which, if any, will have to be supplemented by a statute or jurisprudence [note 4].

In paragraph 3.1, insert the name of the company and, in paragraph 3.2, the address of the headquarters. Section 3.3 makes it clear that partnership premises (the „property“) and furniture and office equipment are unmasked.