Document background
The Equity Partnership Agreement serves as the foundational document for establishing formal business partnerships in the Philippines, subject to local laws and regulations including the Civil Code and Revised Corporation Code. This document is essential when two or more parties wish to enter into a business relationship involving shared ownership, profits, and responsibilities. It's particularly crucial for businesses requiring substantial capital investment, professional services firms, and family-owned enterprises looking to formalize their structure. The agreement comprehensively addresses capital contributions, profit sharing, management rights, transfer restrictions, and dispute resolution mechanisms. It must comply with Philippine foreign ownership restrictions where applicable and should be carefully drafted to protect all partners' interests while ensuring operational efficiency.
