UK Partnership: What You Need to Know About Agreements, Governance, and Revenue Sharing

When you start a UK partnership, a legal business structure where two or more people share ownership, profits, and responsibilities. Also known as business partnership, it’s one of the most common ways entrepreneurs in the UK launch ventures without forming a limited company. Unlike corporations, partnerships don’t need formal incorporation—but that doesn’t mean they’re simple. Without clear rules, even good relationships can turn into legal messes. A partnership agreement, a written contract that defines roles, profit splits, decision-making, and exit rules isn’t optional—it’s your insurance policy. Over 60% of UK partnerships without one end in dispute, according to legal surveys from the Law Society.

What makes a UK partnership work isn’t just trust. It’s structure. Business partnership governance, how partners make decisions, resolve conflicts, and manage daily operations determines long-term survival. Do you need unanimous votes for major spending? What happens if someone wants out? Who controls the bank account? These aren’t theoretical questions—they’re daily realities. The same rules apply whether you’re running a London design studio, a Manchester food truck, or a Leeds consulting firm. And when money’s involved, revenue sharing models, how profits and losses are divided among partners become just as critical as the agreement itself. Some split evenly. Others tie shares to time invested, capital put in, or client responsibility. Get it wrong, and resentment builds fast.

UK partnership law doesn’t force you to write a formal contract, but it does have default rules—and they’re rarely what you want. For example, under the Partnership Act 1890, profits are split equally, no matter who brought in the clients or worked 80-hour weeks. And if someone leaves? The partnership legally dissolves unless you’ve planned for it. That’s why the best partnerships start with clear documentation: roles, responsibilities, exit clauses, and dispute resolution. You’ll find posts here that break down exactly what clauses to include, how to avoid the top five mistakes, and how top UK firms structure their partnerships to grow without friction. Whether you’re launching with a friend or scaling with a co-founder, this collection gives you the tools to build something that lasts—not just starts.