Partnership deed

Partnership deed 

Partnership deed is an agreement among the partners that portrays the provisions and obligations of business. It is a legalized document acting as a security, guide and mutual trust to avoid disputes and disagreements over the function of the partner in the business. It is a document signed between the partners for his/her records to face disputes. Partnership deed consists of business name, address and a brief outline of the business partners. The partnership deed normally carries the name of the business, the address of its principal place of business and a short summary of the business the partners intend to operate.Partnership deed format you can download here
The document contains the investment of capital rendered by the partners, ownership of shares and how the distribution of the income prevails. It is a clear statement as how the revenue is distributed. Generally, partnership in business is a joint venture of companies who shares ownership and contributes enormous financial resources to position the business in this volatile market. Series of discussions between them would lead to good decision making and take prompt action.
Generally, Partnership Company is run by organization of individual mainly for profits. It can be done in both organized and unorganized sector. There are registered and unregistered partnership firms. But it is safe to register it by formulating partnership among the partners.
As per the Indian Stamp Act partnership deed is created on a stamp paper and registered with the registrar of firms and the copy of this form is retained with each one. The partnership abides with regulations by means of arbitration.

Are you interested to register the partnership firm?

You can follow the steps:

1. Choose a partnership name
The partners can choose the name of their own choice.
2. Create a partnership deed
• Specify the name and address of company and the partners
• Include the date at which the company is started
• Give the time period of partnership
• Specify the capital contribution between the partners
• Mention the revenue allocation among the partners
3. Register the partnership deed
• It complies with Indian Partnership Act, 1932.
• Registration is mandatory if any arbitration occurs in the court of law.
• Documents of application Form No.1, filled specimen of affidavit, true copy of partnership deed and ownership proof is produced.
• The application must by signed by the partners.
• Registrar is in charge of producing the certificate of registration.

 

Download Sample Format of Partnership deed

WordDownload from here  partnership-deed-format

PDF :partnership-deed-format

Deed of Partnership

This deed of partnership is made on [Date, Month, Year] between:
1. [First Partner’s Name], [Son/Daughter] of [Mr. Father’s Name], residing at [Address Line 1, Address Line 2, City, State, Pin Code] hereinafter referred to as FIRST PARTNER.
2. [Second Partner’s Name], [Son/Daughter] of [Mr. Father’s Name], residing at [Address Line 1, Address Line 2, City, State, Pin Code] hereinafter referred to as SECOND PARTNER.
3. [Third Partner’s Name], [Son/Daughter] of [Mr. Father’s Name], residing at [Address Line 1, Address Line 2, City, State, Pin Code] hereinafter referred to as THIRD PARTNER.
4. [Fourth Partner’s Name], [Son/Daughter] of [Mr. Father’s Name], residing at [Address Line 1, Address Line 2, City, State, Pin Code] hereinafter referred to as FOURTH PARTNER.

Whereas, the parties hereto have agreed to commence business in partnership and it is expedient to have written instrument of partnership. Now this partnership deed witnesses as follows:

1. BUSINESS ACTIVITY
The parties here to have mutually agreed to carry on the business of [Description of Business Activity Proposed].

2. PLACE OF BUSINESS
The principal place of the partnership business will be situated at [Address Line 1, Address Line 2, City, State, Pin Code]

3. DURATION OF PARTNERSHIP
The duration of the partnership will be at will.

4. CAPITAL OF THE FIRM
Initially the capital of the firm shall be Rs. [Total Partners Contribution].

5. PROFIT SHARING RATIO
The profit or loss of the firm shall be shared equally among all the partners and transferred to partner’s current account.

6. MANAGEMENT
The [First Partner] of the firm shall be Managing Partner and he will look after all the day to day transaction of the firm and any legal activities in the name of the firm and the remaining partners shall co-operate to do so.

7. OPERATION OF BANK ACCOUNTS
The firm shall open a current account in the name of [Partnership Firm Name] at any bank and such account shall be operated by [First Partner] and [Second Partner] jointly as declared from time to time to the Banks.

8. BORROWING
The written consent of all Partners will be required for the partnership to avail credit facilities from any financial institution.
9. ACCOUNTS
The firms shall regularly maintain in the ordinary course of business, true and correct accounts of all its transactions and also of all its assets and liabilities, the property books of account, which shall ordinarily be kept at the firm’s place of business. The accounting year shall be the financial year from 1st April onwards and the balance sheet shall be properly audited and the same shall be signed by all the Partners. Every Partner shall have access to the books and the right to verify their correctness.

10. RETIREMENT
If any partner shall at anytime during the subsistence of the partnership, be desirous of retiring from the firm, it shall be competent from his to do so, provided he shall give at least one calendar month notice of his intention of doing so. The remaining partner shall pay to the retiring partner or his legal representatives of the deceased partner, the purchase money of his share in the assets of the firm.

11. DEATH OF PARTNER
In the event of the death of any partners, one of the legal representatives of the deceased partner shall become the partner of the firm and in the event the legal representative show their denial to point the firm, they shall be paid the part of the part of the purchase amount calculated as on the date of the death of the partner.

12. ARBITRATION
Whenever there by any difference of opinion or any dispute between the partners the partners shall refer the same to an arbitration of one person. The decision of the arbitration so nominated shall be final and binding on all partners, such arbitration proceedings shall be governed by Indian Arbitration Act, which is in force.

In witness whereof, this deed of partnership is signed sealed and delivered this [Day, Month, Year] at [City, State]:
FIRST PARTNER SECOND PARTNER
[Address Line 1] [Address Line 1]
[Address Line 2] [Address Line 2]
[City, State, Pin Code] [City, State, Pin Code]
THIRD PARTNER FOURTH PARTNER
[Address Line 1] [Address Line 1]
[Address Line 2] [Address Line 2]
[City, State, Pin Code] [City, State, Pin Code]
WITNESS ONE WITNESS TWO
[Address Line 1] [Address Line 1]
[Address Line 2] [Address Line 2]
[City, State, Pin Code] [City, State, Pin Code]

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