What is a partnership agreement?
A partnership agreement is a contract between business partners that sets out how profits are shared, how decisions are made, and each partner's rights and obligations.
Business & Startups
Partnership Agreement
Generate a partnership agreement for UK business partners, addressing profit sharing, decision-making, and liability under the Partnership Act 1890.
- Create a general partnership agreement
Generate a partnership agreement between [Partner 1] and [Partner 2] for [Business Name], covering capital contributions, profit and loss sharing percentages, and decision-making authority, consistent with the UK Partnership Act 1890.
- Create a professional services partnership agreement
Generate a partnership agreement for a professional services firm operated by [Partner 1], [Partner 2], and [Partner 3], covering client responsibility, drawings, and admission of new partners.
- Create a partnership dissolution / exit clause
Generate a dissolution and exit clause for the partnership agreement of [Business Name], setting out how a partner's share is valued and paid out if they retire, resign, or the partnership is wound up.
Partnership Agreement Generator (UK)
A partnership agreement is the contract between two or more people running a business together that sets out profit sharing, decision-making authority, and each partner's obligations, supplementing the default rules in the Partnership Act 1890. This free UK partnership agreement generator produces agreements for new business partnerships and professional partnerships, covering capital contributions, profit and loss distribution, and how disputes or a partner's exit are handled. It is designed for UK co-founders, professional practices, and family businesses operating as a general partnership rather than a company or LLP. Because partners in a UK general partnership have unlimited joint and several liability for partnership debts, the generator lets you set clear rules for decision-making authority and financial contributions to reduce disputes. Use it to avoid relying on the often unsuitable default rules that apply when no partnership agreement exists.
Frequently asked questions
Do I need a written partnership agreement in the UK?
It is not legally required, but strongly recommended, since without one the default rules under the Partnership Act 1890 apply, which often assume equal profit shares regardless of contribution.
Are partners personally liable for partnership debts in the UK?
Yes. In a general partnership, partners typically have unlimited joint and several liability, meaning each partner can be personally responsible for the full debts of the partnership.
What should a partnership agreement include?
Capital contributions, profit and loss sharing ratios, decision-making and voting rules, how new partners are admitted, and what happens if a partner wants to leave or the partnership dissolves.
How is a general partnership different from an LLP in the UK?
A general partnership offers no liability protection under the Partnership Act 1890, while a Limited Liability Partnership (LLP), formed under the LLP Act 2000, generally limits members' personal liability.
What happens if a partner wants to leave the partnership?
The partnership agreement should set out how the departing partner's share is valued and paid out, and whether the partnership continues or dissolves, to avoid disputes under the default Partnership Act 1890 rules.