Partnership Agreement Template

(England & Wales)

Create your partnership agreement with profit sharing, capital contributions, decision-making authority, and exit provisions.

Professionally drafted — structured following the Partnership Act 1890 for England and Wales.

Download a professionally drafted partnership agreement template for UK business partners. Also known as a business partnership deed or partnership deed. Covers capital contributions, profit and loss sharing, management duties, decision-making, new partner admission, partner retirement and expulsion, dissolution procedures, and dispute resolution. Without a written agreement, the Partnership Act 1890 default rules apply — including equal profit sharing regardless of contribution. Structured following the Partnership Act 1890 for England and Wales.

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Who Needs a Partnership Agreement?

Essential for any two or more people going into business together — protects all partners and avoids costly disputes.

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Professional Practices
Accountants • Solicitors • Architects
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Property Investors
Joint ventures • Buy-to-let • Development
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Retail Businesses
Shops • Restaurants • Cafes
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Trade Businesses
Builders • Electricians • Plumbers
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Tech Startups
Co-founders • Side projects • Apps
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Creative Agencies
Design • Marketing • Media
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Family Businesses
Siblings • Parent/child • Spouses
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Friends in Business
Joint ventures • New ventures • Side hustles
Partnership Law

Why You Need a Partnership Agreement

Protect your business and your relationships with clear, written terms

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Profit Protection

Without an agreement, the Partnership Act 1890 defaults apply — equal shares regardless of who contributed what. Your agreement specifies the split you actually want.

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Exit Strategy

What happens if a partner wants out? Dies? Goes bankrupt? Your agreement provides clear procedures instead of expensive legal battles.

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Dispute Resolution

Disagreements happen. Your agreement specifies how decisions are made, what requires unanimous consent, and how disputes are resolved.

A partnership agreement — also called a partnership deed — is a legally recognised contract that defines how business partners share profits, make decisions, and resolve disputes, overriding the default rules of the Partnership Act 1890.▼ Tap below to read more

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What Is a Partnership Agreement?

A partnership agreement is a contract between two or more people who agree to carry on a business together with a view to profit. It sets out how the partnership will operate, how profits and losses are shared, and what happens when partners join, leave, or the partnership ends.

Key Elements:

  • Partners: Who is in the partnership and their roles
  • Capital contributions: How much each partner puts in
  • Profit/loss sharing: How profits and losses are divided
  • Management: Who makes decisions and how
  • Drawings: How much partners can withdraw
  • New partners: How to admit new partners
  • Exit provisions: What happens when a partner leaves
  • Dissolution: How to wind up the partnership

Without a written agreement, the Partnership Act 1890 defaults apply — which may not be what you want.

Without a written partnership agreement, the Partnership Act 1890 default rules apply — meaning profits are split equally regardless of investment, any partner can bind the business to contracts, and dissolution requires court involvement.▼ Tap below to read more

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Risks of No Written Agreement

Partnership Act 1890 Defaults (What You Get Without an Agreement):

  • Equal profit sharing: Even if one partner contributed £100,000 and another contributed nothing, profits are split 50/50
  • No salary for partners: Partners aren't entitled to any salary for work done
  • Equal management rights: Every partner has equal say, regardless of contribution or expertise
  • Any partner can dissolve: One partner can end the entire partnership by giving notice
  • No expulsion mechanism: You can't remove a problem partner without their consent
  • Joint and several liability: Each partner is fully liable for all partnership debts

Common Disputes Without Written Terms:

  • Partner disputes about who does what work
  • Arguments about profit shares when one partner works more
  • Deadlock when partners disagree on decisions
  • Chaos when a partner dies or becomes ill
  • Expensive litigation to dissolve partnerships

A written agreement with clear terms helps avoid these costly problems.

This partnership agreement template covers capital contributions, profit and loss allocation, management duties, decision-making authority, drawings and salary provisions, new partner admission, retirement and expulsion procedures, dissolution terms, and dispute resolution.▼ Tap below to read more

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What's Included in Our Agreement

Comprehensive Partnership Coverage:

  • ✓ Partnership name and business
  • ✓ Partners' details and roles
  • ✓ Commencement date and duration
  • ✓ Capital contributions (initial and future)
  • ✓ Profit and loss sharing ratios
  • ✓ Partner salaries and drawings
  • ✓ Bank accounts and financial management
  • ✓ Decision-making procedures
  • ✓ Duties and restrictions on partners
  • ✓ Non-compete and confidentiality
  • ✓ Admitting new partners
  • ✓ Retirement and withdrawal
  • ✓ Death or incapacity provisions
  • ✓ Expulsion of partners
  • ✓ Valuation of partnership share
  • ✓ Dissolution procedures
  • ✓ Dispute resolution

Related documents: Partners starting a business typically also need Shareholders Agreement (if incorporating), NDA, and Business Plan.

Common partnership agreement mistakes include failing to address unequal contributions, omitting death or incapacity provisions, not defining decision-making authority, and relying on verbal agreements that leave partners exposed to Partnership Act 1890 default rules.▼ Tap below to read more

Common Partnership Agreement Mistakes

Don't Make These Critical Errors:

  • No written agreement: "We're friends, we trust each other" — until money is involved and disagreements arise
  • Vague profit sharing: "We'll split it fairly" doesn't specify what fair means when one partner works 60 hours and another works 20
  • No exit mechanism: Partners trapped in relationships they want to leave, or unable to remove problem partners
  • Equal shares regardless of contribution: Partner who invested £50,000 gets same return as partner who invested £5,000
  • No decision-making process: Deadlock when partners disagree on major decisions
  • Missing death provisions: What happens to the partnership share? Do remaining partners have to work with deceased's spouse?
  • No non-compete clause: Partner leaves and immediately starts competing business, taking clients
  • Forgetting tax implications: Partners are personally liable for partnership tax — agreement should address this

Our template addresses all these issues with clear, professionally drafted terms.

Frequently Asked Questions

Is this Partnership Agreement legally binding?

Yes. When signed by all partners, this agreement creates a legally recognised contract under UK law.

It supersedes the default Partnership Act 1890 rules and will be recognised by UK courts.

Partnership agreements are widely used across the UK to establish clear business terms.

Can we have unequal profit sharing?

Yes. Unlike the Partnership Act 1890 default (equal shares), our template allows you to set any profit/loss ratio you agree on — whether 50/50, 60/40, 70/30, or any other split.

You can also have different ratios for profits vs losses, and different ratios for different partners.

What if we want to add a partner later?

Our agreement includes provisions for admitting new partners, including the process, required consents, and how the new partner's capital contribution and profit share are determined.

All existing partners must typically consent unless you specify otherwise in the agreement.

How do I register this partnership?

Ordinary partnerships don't register with Companies House.

You only need to register with HMRC for Self Assessment and notify them of the partnership within 3 months of starting.

If you're forming an LLP (Limited Liability Partnership), you must register with Companies House separately.

Do I need a solicitor to review my Partnership Agreement?

Many complete standard partnership agreements without a solicitor. Our template is based on UK partnership law and includes all essential clauses.

Consider solicitor review if: international partners, large capital investments (£100k+), complex profit structures, or regulated professions.

Your choice based on your situation and complexity.

What if UK law changes after I purchase?

You receive free lifetime updates — no subscription required, no monthly fees, ever.

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