Document background
The Small Business Operating Agreement is a crucial document for enterprises operating under Indian jurisdiction that seek to establish clear governance and operational structures. This agreement becomes necessary when two or more individuals or entities come together to form a small business, whether as a private limited company, LLP, or partnership firm. It addresses key aspects of business operations including capital contributions, profit sharing, management responsibilities, and decision-making processes, while ensuring compliance with Indian regulatory requirements. The document serves as a foundation for preventing future disputes and providing clarity on business operations, making it essential for new business formations and existing business restructuring. This agreement is particularly relevant in the Indian context where small businesses form a significant portion of the economy and require clear operational frameworks to ensure smooth functioning and growth.
