Key Statements in a Partnership Agreement that Determine the Future of Business

Every business comes with its responsibilities and imperatives that are to be accomplished in order to achieve the target growth and profitability. There are myriad aspects involved in conducting and running a business organization. It is a must to ensure that all the must-do’s are conducted most efficiently for the overall progress and growth of a business.    

      

A single-handedly run organization can experience hindered progress. It limits the true potential of the brand and disrupts innovation by constraining ideas for enhancement. Thus in order to ensure consistent growth of business and to alleviate the monotonous nature of an organization, partnerships are immensely valuable. 

  

            

Every business partnership is based on an agreement that defines the terms and conditions of the same. It forms to be the foundation of conducting business and also states the legal conditions that determine the responsibilities of each partner. At Gupta Anoop & Co we offer expert guidance in formulating business agreements that ensure you cherish a hassle-free partnership. 

    

Every business has to go through stages of challenges and sometimes the differentiated opinions of the partners or founders lead to troubles in business. Such misunderstandings and business conflicts can increment thus leading to serious issues in the same. At such times, the agreement of partnership is the only piece of writing that could safeguard the prospects of the business as well as the founders and determine the course of action to be adopted in order to legally settle the issues without further escalation of the same.  

    

The following are the imperative clauses and terms of the partnership that must be included in the agreement to avoid future conflicts in the business -   

§  Statement of percentage in ownership    

   

 The percentage of ownership determines the benefits and overall business control to be enjoyed by each partner. The division of ownership ratio clearly indicates the decision making the power of the partners and thus alleviates any conflicts that could arise at the time of critical decision making.   

Partner or partners with higher capital investment and greater work contribution deserve higher percentages of benefits in ownership. 

§  A clear definition of financial distribution       

             

An agreement of partnership occurring between the conducting founders of a business organization should clearly state the ratio of profit or loss to be shared. It is imperative that the deed of the partnership should mention the distribution of profit or loss between the partners and thus eliminate the chances of disputes at any stage. This agreeable division of finances should prevent any future issues and thus ensure better prospects for the enterprise.  

§  The conditions for termination of the partnership   

                       

The termination of a business partnership and the terms that lead to the same must be mentioned in the agreement. In order to prevent future hassles, a clear clause stating the causes of termination and dissolution of the firm or partnership should also be included in the deed.  

            

The professional chartered accountants and financial consultants at Gupta Anoop & Co. help businesses draft effective partnership deeds in order to prevent any troubled times for the founders and the organization at large. Their expert insights help alleviate any awful consequences and thus pave a way for streamlined business functioning.   

              

GACO also offers professional assistance in all financial aspects of business including accounting, bookkeeping, PAN application, GST, taxation, TAN application, etc to help businesses achieve enhanced progress and better financial gains.