Partnership Deed Format Download

Partnership deed is a legal document that outlines the terms and conditions of a partnership business

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Overview of Partnership Deed Format

A partnership deed is a legal document that outlines the terms and conditions of a partnership business. It is important to have a partnership deed in place to avoid any disputes or misunderstandings between the partners.

The partnership deed should include the following information:

The names and addresses of the partners

The name and address of the partnership firm

The nature of the business

The capital contribution of each partner

The profit-sharing ratio of each partner

The powers and duties of each partner

The dispute resolution mechanism

The termination of the partnership

The partnership deed should be drafted on a stamp paper of appropriate value and should be signed by all the partners. It is also advisable to have the partnership deed registered with the Registrar of Firms.

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Documents Required for Partnership Drafting

The following documents are required for partnership drafting:

Identity proof of partners: This can be a copy of the Aadhaar card, PAN card, or passport of each partner.

Address proof of partners: This can be a copy of the Aadhaar card, driving license, or voter ID card of each partner.

Proof of business address: This can be a copy of the rental agreement, utility bill, or property tax receipt for the business premises.

Other documents: In some cases, additional documents may be required, such as a copy of the trade license, GST registration certificate, or business bank account statement.

Advantages of Having a Partnership Deed

A partnership deed is a legal document that sets out the terms and conditions of a partnership business. It is important to have a partnership deed in place to avoid any disputes or misunderstandings between the partners.

Here are some of the advantages of having a partnership deed:

It provides clarity and certainty: A partnership deed clearly outlines the rights and obligations of each partner. This can help to avoid any disagreements or disputes down the road.

It protects the interests of the partners: A partnership deed can help to protect the interests of the partners in the event of a dispute or dissolution of the partnership. For example, the deed can specify how the profits and losses of the business will be shared, and how the assets of the business will be distributed in the event of dissolution.

It can help to attract investors: A partnership deed can make the partnership more attractive to investors. This is because it shows that the partners have taken the time to formalize their business and that they are serious about making it a success.

It can be used as evidence in court: If a dispute arises between the partners, a partnership deed can be used as evidence in court. This can help to resolve the dispute quickly and efficiently.

Checklists of a Partnership Deed

Here is a checklist of the key items that should be included in a partnership deed:

Names and addresses of the partners

Name and address of the partnership firm

Nature of the business

Capital contribution of each partner

Profit-sharing ratio of each partner

Powers and duties of each partner

Dispute resolution mechanism

Termination of the partnership

In addition to the above, you may also want to include the following in your partnership deed:

Bank account details of the partnership firm

Accounting and auditing procedures

Holidays and leave policy

Exit and buyout provisions

Partnership Deed Format

This partnership deed is made on [Date, Month, Year] between:

[Name of Partner 1], son/daughter of [Name of Father of Partner 1], residing at [Address of Partner 1] (hereinafter referred to as 'Partner 1'); and

[Name of Partner 2], son/daughter of [Name of Father of Partner 2], residing at [Address of Partner 2] (hereinafter referred to as 'Partner 2').

1. Name and address of the partnership firm

The name of the partnership firm shall be [Name of Partnership Firm] and its registered office shall be situated at [Address of Registered Office].

2. Nature of the business

The partnership firm shall carry on the business of [Nature of Business].

3.Capital contribution of each partner

Partner 1 shall contribute a capital of Rs. [Amount] to the partnership firm and Partner 2 shall contribute a capital of Rs. [Amount] to the partnership firm.

4. Profit-sharing ratio of each partner

The profits and losses of the partnership firm shall be shared by the partners in the ratio of [Ratio of Profits and Losses].

5. Powers and duties of each partner

Both the partners shall have equal powers and duties in the management of the partnership firm.

6. Dispute resolution mechanism

Any dispute arising between the partners shall be referred to arbitration. The arbitrator shall be appointed by the partners by mutual consent.

7. Termination of the partnership

The partnership may be terminated by any of the partners giving a notice of not less than [Number] months to the other partners.

8. Signatures of the partners

In witness whereof, the partners have set their hands to this deed on the day and year first above written.

[Signature of Partner 1]

[Signature of Partner 2]

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Frequently Asked Questions (FAQs)

What is the minimum age of becoming a partner in a partnership firm?

At the time of registration, a person must be 18 years old to become a partner.

Is it necessary to form a partnership firm?

No, it is not required, but because it is legal and documented, its development aids in a number of ways, such as in understanding roles, investments, profit and loss ratios. Additionally, will assist with any court proceedings or legal requirements.

How many partners together can form a partnership?

If a company is in the banking industry, a partnership can be formed with a minimum of 2 and a maximum of 10. The number of partners in non-banking firms, however, is not limited to 20.

Is there any time period for registering a partnership firm?

The registration of a partnership firm has no time limit. It may be registered at any moment, at the partner's discretion, whether that be before the beginning of the business or even after it has started.

Is there an option of changing or modifying the partnership deed?

The partnership deed may be amended or modified by filling out a form and submitting it to the appropriate registrar or authorities.