When it comes to running a business, partnerships can be a great way to combine resources, share risk and workload, and ultimately achieve success together. However, before entering into a partnership, it`s important to have a clear and comprehensive agreement in place that outlines the rights, responsibilities, and expectations of each partner. This is particularly important when doing business in Bangladesh, where regulations and cultural practices may differ from other parts of the world.
Here is a sample of a partnership agreement that could be used for a business in Bangladesh:
This Partnership Agreement (“Agreement”), made and entered into on [date], by and between [Partner 1], residing at [address], and [Partner 2], residing at [address], collectively referred to as “Partners” and individually referred to as “Partner,” sets forth the terms and conditions of their partnership.
1. Purpose and Business
The purpose of this partnership is to operate a business in the [industry] sector in Bangladesh. The business will be named [company name]. The business will provide [products/services], and any other activities related or incidental to the foregoing, as determined by the partners in agreement.
2. Capital Contributions
Each partner shall contribute to the partnership, in cash, property, or services, an amount equal to [percentage] of the total initial capital investment. The total initial capital investment for this business shall be [amount]. Any additional contributions from any partner must be approved by the other partner.
3. Profits and Losses
Profits and losses of the partnership shall be shared equally between the partners, unless otherwise agreed in writing. The annual profits and losses of the partnership shall be determined by preparing a financial statement on an annual basis.
4. Management and Control
The partners shall manage the business jointly and each partner shall have equal authority to bind the partnership in all transactions. Decisions shall be made by the partners in mutual agreement, and if no agreement can be reached, then a third party or mediator shall be consulted. Each partner shall devote their full time, attention, and energy to the business.
5. Withdrawal of Partners
Either partner may withdraw from the partnership upon written notice to the other partner. Upon withdrawal, the partnership shall be dissolved, unless the remaining partner elects to continue the business by undertaking to pay to the withdrawing partner the fair market value of their interest in the partnership.
6. Death or Retirement of Partner
If a partner dies or retires from the partnership, the partnership shall not be dissolved but shall continue to operate under the remaining partner. The retiring or deceased partner shall be entitled to receive the fair market value of their interest in the partnership.
The partnership shall be dissolved upon the happening of any of the following events:
a) The mutual agreement of the partners,
b) The withdrawal, death or retirement of either partner,
c) The insolvency, bankruptcy, or dissolution of either partner.
8. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of Bangladesh.
All notices and other communications required under this Agreement shall be in writing and shall be deemed given when delivered personally or sent via certified mail, return receipt requested, addressed to the other partner at their last known address.
10. Entire Agreement
This Agreement represents the entire understanding and agreement between the partners and supersedes all prior negotiations, understandings, and agreements between them relating to the subject matter of this Agreement.
In conclusion, having a comprehensive partnership agreement in place is crucial for any business in Bangladesh, or anywhere in the world for that matter. This sample agreement can serve as a starting point, but it`s important to tailor it to your specific business needs and seek legal advice when necessary to ensure compliance with local regulations and laws.