Partnership Agreement

By: Australian Small Business Centre Pty Ltd   29-Jun-2011
Keywords: Partnership Agreements, Starting a Pty Ltd.


You will have heard that partnerships are the most risky of all business structures for new business and it is therefore a wise move to ensure that you have a quality document to protect both you, your partner/s AND your assets should the partnership fail. This means you must have all the necessary clauses to cover all contingencies.

The Australian Taxation Office has a requirement of proof of partnership in order to access lower tax rates. A partnership in the eyes of the ATO is two or more parties (persons, companies or combination of both) who share a business interest  with the view to making a profit. This agreement is suitable for two people, three person or four person partnership.

Apart from that, ALL business advisors agree that a agreement should be set up prior to commencement of the business. NO EXCEPTIONS. Don't fall for the 'we're friends - we don't need a contract' line. It's your life, it's your money - Protect it.


1. You can have it NOW
2. It's comprehensive - includes ALL aspects
3. It's CHEAP

To be more specific

1.Easy access.   You can download and be working on it within five minutes.  As soon as the payment is made we EMAIL you a  download link (at the bottom of a page that looks like this - so don't forget to scroll down- you have  not be sent back to the website) . Simple!

2.A workshop is enclosed to help you understand the clauses.   There are also alternate clauses so that you may swap to and from the template to ensure that the agreement reflects the TRUE wishes of the partners.

Which ever way you decide remember it is important to protect your assets and reduce tax so don't skimp on the process. It is too important. The workshop is for you and your partner to modify  our template  and ensure the detail for the document that will govern your business relationship.
You don't have to modify it but you have the choice.

Although we have covered all  the necessary clauses plus some, if your partnership has  issues which are peculiar to your partnership alone
you may want to create other clauses for them. If your situation or issue is really convoluted or if there is dissension or concern with any clause don't be afraid to seek legal help. Work out how you want the basics sorted as per this agreement and add the new clause. Just remember in the process don't miss any of the points in our template - they are there to protect you.

3. Template is included so all you have to do is fill in your information and print.  How easy can that be!

4. Template is in Word 2003   No having to deal with pdf documents and having to retype it. Your agreement is ready to be filled in. Even if you have an OLD computer you will be able to open Word 2003. 

5. All the Standard Clauses such as INVESTMENT by each partner, percentage of ownership ,MANAGEMENT ROLES,  EXIT clauses etc PLUS  New  Clause relating to INTELLECTUAL PROPERTY and  ownership of SOCIAL MEDIA ID's  - missing from many of our competitors' documents

Clauses within this agreement relate to : 

Partner details, Capital Input, On-going ownership rights related to Intellectual Property created both prior to and during the partnership,  ownership of Media ID's related to the business, money management, expenses incurred, loans to partnership, division of Net Profit, management of expenses related to partner's residence,  rules for management of books of accounts, roles and responsibilities of each partner, conduct at partnership meetings, employment standards, balance of efforts, drawings, conflict of interest,  personal affairs in relation to partnership, exit clauses including notification to quit partnership, death causing closure, sale of partnership business, admitting new partners, disagreements between partners and more.

Easy to understand language.  Both workshop and sample are in easy to understand language

7. Suitable for All States of Australia, New Zealand and Pacific Islands. The partnership agreement has standard clauses found in agreements in all countries however some countries may have extra clauses to cover points related to liability and agency which are covered by common law in Australia.

8. Multi-use.  Can be used for 2-4 person partnership or agreement between directors in Pty Ltd Company. (Supports and works with the common law  replaceable rules for company structure.)

9. Guarantee.  If you find an issue that is relevant to most businesses that is not covered in our agreement we will refund your total payment

10. Bonus.  Business Start-up Checklist and instructions.   We are assuming that as you are setting up a partnership that you could also be starting a business so we have included the Start-up Checklist to make sure that you get things right at the start.  Don't miss something that could bring you down later.

11. Dissolution of Partnership.  The exit Clauses in this agreement will cover you when you wish to end the partnership.

HELP!!  There is also a guide in the workshop to guide you if you wish to exit a partnership and haven't got a written agreement.

To Finalise your Agreement

When you have a finished your written agreement, each partner will need an original signed copy of your agreement. Anyone can witness your signature - in fact you can witness each others. Setting up your agreement this way is totally effective as all partners have to be fully involved in the decision making process and then as a consequence they then commit to the partnership principles.


Remember you are going into business and can't expect everything to be handed to you on a platter. Taking short cuts at the beginning could come back and hit you in the face later. Now it's decision time -  you know you need this document so be our guest
flick over to
purchase now and you can be talking it through with your partner in five minutes.   or Phone 02 9713 1041 to talk to consultant. 

Keywords: Partnership Agreements, Starting a Pty Ltd.

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