Partnership Deed Format

Last Updated at: March 02, 2020
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Partnership Deed Format

When two or more than two people come together and create a new business entity, they enter into an agreement known as a partnership, and when this agreement acquires a written role, it is said to be Partnership Deed. Let us have a closer into this Partnership Deed, partnership deed format  and its significance and the various clauses attached to it.

  1. Meaning of partnership deed

  2. What are the details of the Partnership Deed?

  3. Why is a partnership deed created?

  4. Advantages of registering a partnership

  5. Partnership deed format

  6. What are the steps of drafting a partnership deed?

  7. What are the documents required for registering the deed?

 

Meaning of Partnership Deed

A written legal document that emphasizes the rights and control of the members of a partnership firm, making the profits and losses and other significant decisions and their implications crystal clear to each of the partners.

What are the details of Partnership Deed?

The following are the main characteristics of the partnership deed: –

  • Name and address of the partnership and its co-owners– The partnership deed contains the name by which the business will continue in the future.
  • Name of the owners and their addresses- The deed also contains the names and present addresses of all the partners.
  • Nature of the business– The partnership deed also clearly mentions the type of business to be.
  • Address of the firm– The partnership deed must mention the location of all the offices and the head office.
  • Opening date and place – It should also clearly indicate the time and place of opening of the business.
  • Duration of the business– The deed also contains the time duration of the partnership, whether for a fixed period or a project.
  • Capital provided by owners– The deed must also contain the amount of money each owner has contributed.
  • Profit-sharing ratio- It should mention the ratio of the profits earned concerning the partners.
  • Audit details– The procedure of audit that will be conducted is also mentioned in the deed.
  • Admission and retirement or death of the partners– Rules are referring to the entrance or resignation or death of any partner in the firm in the deed.
  • Rights and responsibilities of the partners– The deed also contains all the rights enjoyed by the partners and the various duties to be undertaken.
  • Settlement of accounts– the deed contains the way of settlement of accounts in case, the firm undergoes dissolution.

Why is a Partnership Deed created?

Being written in nature, a partnership deed is more reliable than any oral agreement.  The significance of a partnership deed can be summarized in the following points: –

  • Being legal, this document provides well-defined guidelines and rules for carrying out the agreement.
  • Prevents confusion due to its clarity in outlining all the specific details.
  • In cases of the settlement of any dispute, the deed makes the procedure of the events simple.
  • The precise yet clear nature of the document makes the roles of each of the members of the firm clear and unambiguous.

Get free legal advice now

Advantages of registering a Partnership

There are many benefits associated with getting a partnership firm registered: –

  • Right to file a case– A registered firm automatically receives the right to file any situation in the judiciary.
  • The Protection of interests– In case of any disputes among the partners, a registered firm and its owners can rightfully claim their settlement.
  • Protection from creditors, investors– a registered property is safe from the creditors in case of debts if the company maintains its records.
  • Protection of business and production– All the registered firms enjoy the benefits provided by the government as they are registered under the government.
  • Bank loans– Registered firms receive credits and loans from banks quickly due to their nature.

Partnership Deed Format

Given below is a sample of the partnership deed format: –

What are the steps of drafting Partnership Deed?

Here is a step by step process for drafting partnership deed: –

  • Draft the agreement- The partners need to select the agreement providing all the relevant details of the firm and its partners.
  • Get the e-stamp paper- Purchase the e-stamp paper of the prescribed amount and get the deed printed on it. 
  • Sign the deed– Get the signatures of all the partners on all the pages of the act accepting the rules and regulations.
  • Get the deed attested from Notary or get it registered– It’s up to the partners whether they want the deed to be attested by the Notary or they want to get it registered.

What are the documents required for registering the Deed?

Following are the list of documents required for registering the Partnership Deed from the Sub Registrar- 

  • Identity Proofs of the partners
  • E-stamp paper of the prescribed amount
  • Registration fee
  • Aadhar numbers of all the partners
  • Two Passport-sized photos of each business partner

 

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Partnership Deed Format

729

When two or more than two people come together and create a new business entity, they enter into an agreement known as a partnership, and when this agreement acquires a written role, it is said to be Partnership Deed. Let us have a closer into this Partnership Deed, partnership deed format  and its significance and the various clauses attached to it.

  1. Meaning of partnership deed

  2. What are the details of the Partnership Deed?

  3. Why is a partnership deed created?

  4. Advantages of registering a partnership

  5. Partnership deed format

  6. What are the steps of drafting a partnership deed?

  7. What are the documents required for registering the deed?

 

Meaning of Partnership Deed

A written legal document that emphasizes the rights and control of the members of a partnership firm, making the profits and losses and other significant decisions and their implications crystal clear to each of the partners.

What are the details of Partnership Deed?

The following are the main characteristics of the partnership deed: –

  • Name and address of the partnership and its co-owners– The partnership deed contains the name by which the business will continue in the future.
  • Name of the owners and their addresses- The deed also contains the names and present addresses of all the partners.
  • Nature of the business– The partnership deed also clearly mentions the type of business to be.
  • Address of the firm– The partnership deed must mention the location of all the offices and the head office.
  • Opening date and place – It should also clearly indicate the time and place of opening of the business.
  • Duration of the business– The deed also contains the time duration of the partnership, whether for a fixed period or a project.
  • Capital provided by owners– The deed must also contain the amount of money each owner has contributed.
  • Profit-sharing ratio- It should mention the ratio of the profits earned concerning the partners.
  • Audit details– The procedure of audit that will be conducted is also mentioned in the deed.
  • Admission and retirement or death of the partners– Rules are referring to the entrance or resignation or death of any partner in the firm in the deed.
  • Rights and responsibilities of the partners– The deed also contains all the rights enjoyed by the partners and the various duties to be undertaken.
  • Settlement of accounts– the deed contains the way of settlement of accounts in case, the firm undergoes dissolution.

Why is a Partnership Deed created?

Being written in nature, a partnership deed is more reliable than any oral agreement.  The significance of a partnership deed can be summarized in the following points: –

  • Being legal, this document provides well-defined guidelines and rules for carrying out the agreement.
  • Prevents confusion due to its clarity in outlining all the specific details.
  • In cases of the settlement of any dispute, the deed makes the procedure of the events simple.
  • The precise yet clear nature of the document makes the roles of each of the members of the firm clear and unambiguous.

Get free legal advice now

Advantages of registering a Partnership

There are many benefits associated with getting a partnership firm registered: –

  • Right to file a case– A registered firm automatically receives the right to file any situation in the judiciary.
  • The Protection of interests– In case of any disputes among the partners, a registered firm and its owners can rightfully claim their settlement.
  • Protection from creditors, investors– a registered property is safe from the creditors in case of debts if the company maintains its records.
  • Protection of business and production– All the registered firms enjoy the benefits provided by the government as they are registered under the government.
  • Bank loans– Registered firms receive credits and loans from banks quickly due to their nature.

Partnership Deed Format

Given below is a sample of the partnership deed format: –

What are the steps of drafting Partnership Deed?

Here is a step by step process for drafting partnership deed: –

  • Draft the agreement- The partners need to select the agreement providing all the relevant details of the firm and its partners.
  • Get the e-stamp paper- Purchase the e-stamp paper of the prescribed amount and get the deed printed on it. 
  • Sign the deed– Get the signatures of all the partners on all the pages of the act accepting the rules and regulations.
  • Get the deed attested from Notary or get it registered– It’s up to the partners whether they want the deed to be attested by the Notary or they want to get it registered.

What are the documents required for registering the Deed?

Following are the list of documents required for registering the Partnership Deed from the Sub Registrar- 

  • Identity Proofs of the partners
  • E-stamp paper of the prescribed amount
  • Registration fee
  • Aadhar numbers of all the partners
  • Two Passport-sized photos of each business partner

 

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