Business betrayal

I started a catering business with my close friend, invested money and helped secure clients. We agreed to share profits equally, but we did not sign any agreement. Now she has registered the business at BRELA in her name alone. What can I do? Please enlighten me.
JM, Tanga

This situation highlights the risks associated with informal business arrangements. The relevant law for your situation is the Law of Contract Act, Cap 345 [R.E. 2023] (LCA). Section 190(1) of the LCA defines a partnership as a relationship between persons conducting a business together with the intention of making a profit. The relationship of a partnership arises from contract and not status. The terms of the contract are outlined in a document commonly referred to as the partnership deed or agreement. It is, however, not necessary that the terms be in written form. In determining whether a partnership exists, the law requires consideration of several factors, including mutual understanding, shared profits, and joint activities, which are sufficient indicators of a partnership.

Regarding the BRELA registration, it is governed by the Business Names (Registration) Act [Cap 213 R.E. 2023](BNRA). Registering a business name mainly serves regulatory compliance and does not automatically establish ownership rights in the business. Therefore, you can challenge the unilateral registration and assert your interest in the business by discussing it with your partner and effecting the joint names. Be sure to communicate the change to BRELA within 28 days as required under section 11 of the BNRA. We advise formalising the business arrangement through a written agreement to prevent further disputes. Consult your lawyer to guide you through this process.