When working with a partnership agreement, there are things that need to be taken into account. When deciding whether a partnership is the best structure of your business relationship, make sure that all parties involved fully understand the agreement. Depending on the jurisdiction, there may be tax benefits for a joint venture in a partnership in which a member of a joint venture may be treated differently from a partner in a partnership. In principle, a partnership agreement is reached to deal with all kinds of situations where there may be confusion, disagreement or change. A partnership in Hong Kong is a business entity created by the Hong Kong Trade Agreement, which defines a partnership as “the relationship between people who have a joint venture for profit” and is not a limited company or a registered company.  When the business entity registers with the Registrar of Companies, it takes the form of a single limited partnership defined in the Limited Partnerships Ordinance.   However, if this entity does not register with the Registrar of Companies, it becomes a general partnership as a late payment.  All partners are jointly liable for the company`s debts and obligations. Individual partners may be exposed to different personal risks due to the failure of the partnership.
A successful partner may be much more willing to take significant risks. A less fortunate partner can risk all personal assets. To protect the interests of all partners, major purchases may require the unanimous agreement of all partners. Partnerships can be complex depending on the size of the activity and the number of partners involved. The creation of a partnership agreement is a necessity to reduce the potential for complexity or conflict between partners within this type of business structure. A partnership agreement is the legal document that determines how a business is managed and describes the relationship between the different partners. Partnerships often continue to operate for an indeterminate period, but there are cases where a business is destined to dissolve or end after reaching a certain stage or a certain number of years. A partnership agreement should contain this information, even if the timetable is not set. While industrial partnerships strengthen mutual interests and accelerate success, some forms of cooperation can be considered ethically problematic. For example, when a politician works with a company to promote the interest of a company against a certain utility, there is a conflict of interest; Therefore, the common good may suffer.