Sample Partnership Deed Template for Indian Partnership Firms
A Partnership Deed is a written agreement between two or more individuals who wish to start a business together and share profits and liabilities. In India, a well-drafted Partnership Deed is crucial for ensuring smooth operations and avoiding disputes. Below is a comprehensive template for drafting a Partnership Deed for an Indian Partnership Firm.
Partnership Deed Format
PARTNERSHIP DEED
This Partnership Deed is executed on this ___ day of ______, 20, by and between:
Mr./Ms. [Partner 1 Name], S/o/D/o [Parent’s Name], residing at [Address], hereinafter referred to as the First Party;
Mr./Ms. [Partner 2 Name], S/o/D/o [Parent’s Name], residing at [Address], hereinafter referred to as the Second Party;
[Additional Partners, if any];
(Collectively referred to as the "Partners" and individually as a "Partner")
The Partners have decided to form a partnership firm under the Indian Partnership Act, 1932, on the following terms and conditions:
1. Name and Address of the Firm
The name of the partnership firm shall be [Firm Name], and its principal place of business shall be [Registered Address]. The firm may open branches at other locations as decided by the Partners.
2. Nature of Business
The firm shall engage in the business of [Specify Business Activity] and any other lawful business activities agreed upon by the Partners.
3. Duration of Partnership
The partnership shall be [Fixed-term/At-will]. If fixed-term, the firm shall continue for a period of [Duration], unless dissolved earlier by mutual consent.
4. Capital Contribution
Each Partner shall contribute the following amount as capital:
[Partner 1 Name]: ₹[Amount]
[Partner 2 Name]: ₹[Amount]
[Additional Partners, if any]
Further capital, if required, shall be contributed by mutual agreement of the Partners.
5. Profit and Loss Sharing
The net profits and losses of the firm shall be distributed among the Partners in the following ratio:
[Partner 1]: __%
[Partner 2]: __%
[Additional Partners, if any]
6. Bank Account & Operations
The firm shall maintain a bank account in the name of [Firm Name], and the authorized signatories for transactions shall be as decided by the Partners.
7. Management and Responsibilities
Each Partner shall actively participate in the business, and their roles and responsibilities shall be determined by mutual consent.
8. Decision Making
All major decisions shall be made by mutual consent. In case of a dispute, a simple majority vote among the Partners shall prevail.
9. Withdrawal or Retirement
A Partner may withdraw from the firm by giving [Notice Period] days' written notice. The withdrawing Partner’s share shall be settled as per the firm’s financial position.
10. Dissolution
The firm may be dissolved by mutual agreement, and assets shall be distributed as per the agreed terms.
11. Arbitration Clause
In case of any dispute, the matter shall be referred to an arbitrator appointed by mutual agreement. The arbitration shall be governed by the Arbitration and Conciliation Act, 1996.
12. Governing Law
This Partnership Deed shall be governed by the Indian Partnership Act, 1932, and other applicable Indian laws.
IN WITNESS WHEREOF, the Partners have signed this Deed on the date mentioned above.
Signed and Delivered by:
[Partner 1 Name] (Signature)
[Partner 2 Name] (Signature)
[Additional Partners, if any]
Witnesses:
[Witness 1 Name] (Signature)
[Witness 2 Name] (Signature)
Conclusion
Having a properly drafted Partnership Deed ensures transparency, defines responsibilities, and minimizes disputes. It is advisable to get the deed registered with the Registrar of Firms for added legal validity.
If you need assistance in drafting or registering a partnership deed in Rajasthan or anywhere in India, feel free to reach out through our blog.
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