A Silent partnership contract is a business commitment entered between a business owner or an active business partner and an interested person who is willing to work as a silent partner. The terms of such a contract are different from a sample partnership contract.

Sample Silent Partnership Contract:

Partnership contract number: 349/ SP

Date: December 24th, 2010

This silent partnership contract is commenced between Eagles Companies Pvt. Ltd, Address: Plot No: 7/ K, Wind- H, Industrial Area- A, Toronto, Canada, hereinafter referred as the business partner.


Mr. Tim Hudson, Permanent Address: House no: 44/ L, Spencer road, Toronto, Canada, hereinafter called as the silent partner.

Whereas, the silent partner showed his interest to join the business venture silently and the business partner i.e. business owner has accepted this partnership proposal.

This contract is effective from December 27th, 2010 and is ending on December 27th, 2011.

Silent partnership clauses:

  • The silent partnership can share the full profit earning and losses.
  • The silent partner is responsible for investing the equal monetary values in the business.
  • He can withdraw from the silent partnership any time.
  • He can do the investments in other units of the business.

A silent business partner is not eligible for the followings:

  • He is not eligible for any salary except profits.
  • He cannot participate as an active partner and does not hold any right to check the business credit and withdrawal accounts.
  • He is not responsible for any special duties.

Term & conditions for the contract:

Business obligations:

As defined above, the silent partner will be responsible for certain rights and duties.

Renewal clause:

This silent partnership contract can be renewed if both the partners agree to work together in the future.

Contract fee:

The contract preparation charges will be adjusted by both the parties.

Termination term:

In case if any official issue is encountered or any violation is found to the above explained terms, this contract will be considered as dissolved.

Validation of the contract:

Signed by the business partner:

Emma Smith

Signed by the silent partner:

Tim Hudson

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