Formal Letter confirming Business Partnership (Template)

In the course of business, many organizations may approach you for a business partnership. It is up to you to analyze and decide which ones among them will be sustaining in the long term and be profitable.

Once you receive a letter of intent from an organization for a business partnership, you can either agree to the association or reject it. If you decide to accept it, then you have to write them a formal letter regarding further terms and conditions.

Here are examples of official letters confirming business partnerships between two organizations. Please modify them suitably as needed in your cases.

TEMPLATE #1

Date: _________

To

(Name of the Person)

(Designation)

(Name of the Organization)

(Office Address)

Reg. Partnership.

Hello Mr./Ms. __________,

Greetings of the day!

We appreciate your interest in associating with us as our business partner for the (Product's Name). This letter confirms our intention to engage in such a partnership arrangement that will be mutually beneficial.

Please find below a summary of our discussion in the meeting on (Date), where we decided the next steps in our association:

i) The business partnership shall be initially for a period of ___ years. It can be renewed for further years as maybe mutually agreed upon.

ii) Any kind investment required for the business partnership will be in the ratio of ______; wherein your organization contributes ___% and ours contributes __%.

iii) Profit will be shared in the ratio of investment as mentioned above. Likewise, the losses will be borne by each party in the investment ratio.

iv) An audit firm will be appointed to carry out a detailed audit on the partnership business.

v) In order to deal with any disputes relating to the partnership, arbitration mechanisms will be followed as per international best practices.

vi) Each month at least one board meeting will be conducted to mutually review the operations.

We are enclosing herewith a draft copy of the legal agreement on our partnership for your perusal. Please go through the same thoroughly and let us know if any changes are to be incorporated. We agree to follow all applicable terms and conditions governing the agreement to the letter.

We look forward to establishing a long-term successful partnership with you. Please feel free to contact me at (Phone Number) or (Email) if you have any questions regarding this association.

Thanking you,

Yours faithfully,

    (Signature)

(Name of the Person)

(Designation)

TEMPLATE #2

Date: _________

To

(Name of the Person)

(Designation)

(Name of the Organization)

(Office Address)

Sub.: Business Partnership.

Dear Sir/Madam,

We acknowledge the receipt of your letter of intent for a possible business partnership. We have gone through the contents of the same. We hereby confirm that we are interested in becoming a business partner of your organization.

Please note that the primary conditions of our association will be as follows, based on which further relation will be developed:

1. Initial capital investment of (Amount) in the ratio of 60:40. 60 by you. 40 by us.

2. All operational expenses including salaries for additional human resources will be shared equally.

3. Profit after tax at the end of the will be shared equally. Otherwise, it will be reinvested as per mutual decision. Any losses will be borne equally by each party.

4. Any loans from financial institutions will be taken on joint names only after mutual discussion.

5. On the business front, our main responsibility will be more on strategic decision making, branding, and marketing, whereas your responsibility will be more on looking after the administrative and operational matters.

6. All major decisions will be taken only after mutual board meetings.

We propose that we meet at a time convenient to both of us to discuss and finalize the terms of this business partnership. Please call me at _________ or email me at _________ to set up a meeting.

Looking forward to a long-term fruitful business partnership.

Thanking you,

Yours faithfully,

    (Signature)

(Name of the Person)

(Designation)