A partnership is a business structure that involves two or more persons going into business together with a view of making a profit.
In Trinidad and Tobago, partnerships are governed by the Partnership Act.
Persons forming a partnership business usually enter into a partnership agreement which is often drawn up to avoid the implications of the Partnership Act - the agreement usually varies or excludes the duties, rights and interests of the partners which would otherwise exist because of the Act. The partnership agreement may be oral, written, or can even be implied from the parties’ conduct.
It should be noted that a partnership can be created between two or more individuals, between individuals and companies, as well as between two or more companies.
Before entering into a partnership it would be prudent to have a lawyer prepare a formal partnership agreement outlining:
The advantages of a partnership:
The disadvantages of a partnership: