In this blog we will tell you about all the details that should be in a Partnership Deed Format. The Partnership Deed Format that we have shared in this blog is not absolute and is subject to modification based on a individual’s needs.
What is a partnership?
As per Section 4 of The Partnership Act, 1932: “Partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. In this blog we will tell you about all the details that should be in a Partnership Deed Format.
What is a Partnership Deed?
A partnership deed is an agreement between the partners of a firm that outlines the terms and conditions of the partnership among the partners. This agreement can be written or oral. eSahayak strongly recommends to have a written Partnership Deed. You can know more about Partnership Deed and why do you need one, from our blog on What is a Partnership Deed?.
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Contents of a Partnership Deed
A partnership deed contains the following details:
- Business of the firm: Business to be undertaken by the partners of the firm.
- Duration of Partnership: Whether the duration of the partnership firm, is for a limited period or for a specific project.
- Sharing of profit/loss: Ratio of sharing profits & losses of the firm among its partners.
- Salary and commission: Details of the salary, and commission if any, payable to partners.
- Capital contribution: Capital contribution to be made by each partner and the interest on said capital to be paid to partners.
- Partner’s Drawings: Policy regarding the drawings from the firm allowed to each partner and interest if any to be paid by partner, to the firm on such drawings.
- Partner’s Loan
- Duties & Obligations of partners
- Admission, Death & Retirement of partner
- Accounts and audit
Note: The above elements are general clauses and there may be some other clauses that can be added to the partnership deed based on the partners requirements.
See this also: Importance of a Partnership Deed
How to Register for Partnership deed in India?
Partnerships in India are governed by the Indian Partnership Act, 1932. As per the Partnership Act, Registration of Partnership Firms is optional and is entirely at the discretion of the partners. The Partners may or may not register their Partnership Agreement. eSahayak strongly recommends to register your Partnership Deed.
However, in case the partnership deed is not registered, the partners may not be able to enjoy the benefits which a registered partnership firm enjoys. Know more about the benefits of registering a Partnership Deed here.
Registration of Partnership may be done before starting the business or anytime during the continuance of partnership. However, if the firm intends to file a case in the court to enforce rights arising from the contract, the registration should be done before filing the case.
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Format of Partnership Deed Draftpartnership-deed-210527045353
If you need a Partnership Deed Format in Hindi, you can get one here.
Not really sure if you need a Partnership Deed? Or want a legal consultation? You can do so by clicking here, filling out a simple form to book an appointment with our expert lawyers.
See this also: Types of Partnership Deed