Partnership Agreement

A detailed agreement for a general partnership that replaces the Partnership Act 1890 default rules with clear terms on capital, profits, decisions, departures and dissolution.

Editable Word document
16
10pages
Guidance notes included
aml consultancy solutions

Company secretarial

Partnership Agreement

About this document

What it’s for

A written agreement between the partners of a general (unlimited) partnership. Without one, the Partnership Act 1890 applies: profits are split equally, any partner can end the partnership at any time by notice, and the death or bankruptcy of a partner dissolves it. This agreement replaces those rules with arrangements that suit a modern business.

When to use it

  • When two or more people start a business together without forming a company or LLP
  • When a partner joins or leaves an existing partnership with no written agreement
  • For farming, professional and family partnerships

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

  1. Definitions and interpretation
  2. The partnership
  3. Capital
  4. Profits, losses and drawings
  5. Partnership property
  6. Bank accounts and payments
  7. Accounts and records
  8. Partners’ duties
  9. Management and decisions
  10. Restrictions on Partners
  11. Holidays, sickness and family leave
  12. New Partners
  13. Retirement
  14. Expulsion and compulsory retirement
  15. Death and incapacity
  16. Payment for an Outgoing Partner’s share
  17. Restrictions after leaving
  18. Dissolution
  19. Insurance
  20. Confidentiality, data protection and intellectual property
  21. Dispute resolution
  22. Notices
  23. General
  24. Governing law and jurisdiction

Also included

  • Part 1 – Partners
  • Part 2 – Capital and Profit Shares
  • Part 3 – Property remaining with individual Partners

How to complete it

  • Fill in the partners, business name, capital and profit shares (Schedule 1)
  • Decide which decisions need everyone’s agreement (Schedule 2)
  • Choose the notice period for retirement and how outgoing partners are paid out
  • Each partner should sign and keep a copy; review it whenever the partners change

Key points to check

  • Partners have unlimited personal liability for the firm’s debts – consider an LLP or company if that is a concern
  • Each partner is taxed on their own share of profits through Self Assessment
  • In Scotland a partnership is a separate legal person – take Scottish advice

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

Company secretarial

£20

for every document in this category

Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

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