Partnership agreement template
A partnership agreement sets out how a general partnership in England and Wales is owned and run: each partner's capital and profit share, drawings, decisions, and what happens when a partner leaves or the partnership ends. Without one, the default rules of the Partnership Act 1890 apply, including equal profit shares and dissolution by notice. Solicitors and accountants prepare one whenever partners start or restructure a firm, with the partners, the shares and the terms changing each time.
Made by DocuWeave. Use at your own discretion.
What changes each time
17 values. Everything else is your wording, kept exactly.
The firm
- Business and firm name
- Start date
- Main place of business
Partners and money
- Partners, addresses, capital and shares
- Capital deadline
- Interest on capital
- Profit sharing
- Partnership salary
- Monthly drawings
Running the firm
- Bank and dual-approval threshold
- Year end and accountant
- Decisions needing all partners
- Holiday
Leaving
- Retirement notice
- How the outgoing partner is paid
- Restrictions after leaving
- Dissolution and mediation
The rules it usually needs
Written in plain English when the template is set up.
- Once for each item
“One row in Schedule 1 and one signature line for each partner.”
Three partners, so Schedule 1 has three rows with their capital and shares, and there are three signature lines.
- One of several wordings
“Share profits and losses equally, or in the shares set out in Schedule 1.”
The partners agreed 40%, 35% and 25%, so profits follow Schedule 1.
- One of several wordings
“Pay the outgoing partner in a lump sum within a set time, or in equal instalments.”
The heads of terms said four equal quarterly instalments with interest at 4% a year.
- The AI decides from the paperwork
“Include the partnership salary and the post-departure restrictions only if agreed.”
A salary for one partner and a 12-month non-dealing restriction were agreed, so both were included, without a non-compete.
One worked example, start to finish
The partnership agreement in DocuWeave, from upload to approval.
1The document uploaded
The partnership agreement, a Word file, uploaded as it is.
- 2
The template it became
It found 42 sections and 44 values, and asked 24 questions before publishing. Profits are shared equally or in the Schedule 1 shares.
3The paperwork dropped in
The partners' heads of terms email and the capital and profit shares sheet.
4What was found, with sources
40 of 44 values filled from the paperwork, each with the passage it came from.
5What it asked
4 things for a person, starting with the partnership salary to confirm.
6The approved output
Approved, with Word and PDF downloads.
A free partnership agreement to download
- Partnership agreement, filled with fictional details (Word)
- Partnership agreement, filled with fictional details (PDF)
Use it as it is, or upload it to DocuWeave and make it a template.
DocuWeave is not a law firm. A general template for common situations in England and Wales. It is not tailored to you and we do not update it when the law changes, so check it suits your situation before you use it. Terms.
Made by DocuWeave. Use at your own discretion.
Questions people ask
What happens without a partnership agreement?
The Partnership Act 1890 applies. Among other things, profits are shared equally whatever each partner put in, and any partner can end a partnership at will by notice.
Is this agreement for an LLP?
No. It is for a general partnership in England and Wales, where each partner is personally liable for the firm's debts. An LLP or a limited partnership needs a different agreement.
Do partners have to share profits equally?
No. They can agree any shares. This agreement lets them choose equal shares or the shares set out in Schedule 1.
What happens when a partner leaves?
Under this agreement the partnership continues, the remaining partners buy the leaver's share on the agreed terms, and the firm tells its clients and suppliers. A notice in the London Gazette can also be published.
Are restrictions on a leaving partner enforceable?
Only if they are reasonable in length, area and scope, to protect the firm's legitimate interests.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.