A Partnership Agreement in Singapore is a legally binding document that outlines the rights, responsibilities, and obligations of the partners in a partnership. It serves as a contract between the partners and helps establish the framework for how the partnership will operate. While not mandatory, having a Partnership Agreement is highly recommended for partnerships in Singapore as it can help prevent misunderstandings and disputes among partners.
Key components typically included in a Partnership Agreement in Singapore:
Name and Purpose of the Partnership: Clearly state the name of the partnership and its purpose or business objectives.
Partnership Contributions: Specify the capital contributions of each partner, whether in the form of cash, property, or services and how profits and losses will be allocated among the partners.
Management and Decision-Making: Define how decisions will be made within the partnership, including voting rights and the responsibilities of each partner in managing the business.
Distribution of Profits and Losses: Outline how profits and losses will be distributed among the partners, including any provisions for salaries or draws.
Withdrawal or Retirement of Partners: Describe the process for partners to withdraw from or retire from the partnership, including any buyout provisions or restrictions.
Dispute Resolution: Specify procedures for resolving disputes among partners, including mediation or arbitration clauses.
Admission of New Partners: Detail the process for admitting new partners to the partnership, including any requirements or approval procedures.
Dissolution of the Partnership: Outline the circumstances under which the partnership may be dissolved and the procedures for winding up the business and distributing assets.
Non-Compete and Confidentiality: Include provisions to protect the partnership’s confidential information and prevent partners from competing against the partnership during and after their involvement.