General Partnership Agreement

A General Partnership Agreement ('the Agreement') is a contract between at least two persons who wish to manage and operate a business together with the goal of making profit, and where each partner will be personally responsible for the liabililties of the partnership.

A General Partnership is a business arrangement where two or more persons to run an own a business together in which they will share responsibilities, assets, profits and all/any arising legal liabilities associated with the business.

A general partnership requires a minimum of 2 individuals for one to be formed. Each Partner has a share in the partnership's profits and losses and each Partner bears personal liability for the debt and obligations of the Partnership.

There are different types of partnership ventures in the UK, namely:

• General Partnership: in this form of partnership, each individual partner is personally responsible for the liabilities of the partnership. This Agreement can only be used for the General Partnership.
• Limited Partnership: in this form of partnership, there must be at least one partner who is personally responsible for the liabilities of the partnership, and one partner who has limited liability (i.e. a partner whose liability is limited to the amount he initially invested in the business).
• Limited Liability Partnership: in this form of partnrship, the partnership has separate legal personality that is distinct from the partners and the partners are not personally responsible for the liabilities of the partnership.

This document can be used for partnerships which are created in England and Wales, Scotland and Northern Ireland.

How to use this document

This document can either be created at the start of a new partnership venture or as the binding document of an already existing/operating partnership to help the partners clarify how the Partnership should operate. The Agreement will have clauses that address:

• The Partnership name;
• A description of the Partnership's business;
• Partners' information;
• The capital contributions of the Partners;
• Ownership interest;
• Responsibilities of the Partners;
• Profit and loss distribution;
• The sharing of profit and/or loss between the Partners;
• Management and voting process/requirements;
• Admission of new Partners and withdrawal, expulsion or retirment of existing Partners; and
• Dissolution of the Partnership.

The Partners have the opportunity to choose whether a managing partner will be appointed to oversee the day-to-day running of the partnership, or whether such matters will be handled collectively by the partners. Upon the creation of the Agreement, all the Partners should sign and date the Agreement and also keep copies of the Agreement for their personal records. Additionally, each partner must have a witness who observes them signing the agreement. Any proposed changes to the Agreement by the Partners should be done in writing.

Applicable law

The Partnership Act 1890

Limited Liability Partnership Act 2000

Help from a lawyer

You can choose to consult a lawyer if you need help.

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.