Partnership Deed Format

साझेदारी विलेख प्रारूप

Agreements Updated: 2025-02-28

Overview

A partnership deed is a legal agreement between two or more persons who agree to carry on a business together and share profits and losses. It is governed by the Indian Partnership Act, 1932 and defines the rights, duties, and obligations of each partner.
Hindi साझेदारी विलेख दो या अधिक व्यक्तियों के बीच एक कानूनी समझौता है जो एक साथ व्यवसाय चलाने और लाभ-हानि बांटने पर सहमत होते हैं। यह भारतीय साझेदारी अधिनियम, 1932 द्वारा शासित है।

When to Use This Format

  • When starting a partnership business with one or more persons
  • To define profit-sharing ratios among partners
  • For registering a partnership firm with the Registrar of Firms
  • When adding a new partner or reconstituting the firm
  • To establish clear terms for capital contribution and management

Key Components

  1. 1 Partner Details

    Names, addresses, ages, and PAN numbers of all partners.

  2. 2 Firm Details

    Name, address, and nature of business of the partnership firm.

  3. 3 Capital Contribution

    Amount of capital contributed by each partner and terms for additional contribution.

  4. 4 Profit/Loss Sharing

    Ratio in which profits and losses will be shared among partners.

  5. 5 Management Duties

    Roles, responsibilities, and authority of each partner in managing the business.

  6. 6 Dissolution Terms

    Conditions for dissolution, retirement of partners, and settlement of accounts.

Sample Format

Download Word Document
PARTNERSHIP DEED This Partnership Deed is executed on this ___ day of _______, 2025 at [Place] BETWEEN 1. [Partner 1 Name], S/o [Father's Name], aged ___ years, PAN: _____ residing at [Address] (hereinafter called "First Partner") 2. [Partner 2 Name], S/o [Father's Name], aged ___ years, PAN: _____ residing at [Address] (hereinafter called "Second Partner") The parties have mutually agreed to carry on business in partnership on the following terms: 1. NAME: The firm shall be carried on under the name and style of "[Firm Name]". 2. BUSINESS: The business of the firm shall be [describe nature of business]. 3. PLACE: The principal place of business shall be at [Address]. 4. COMMENCEMENT: The partnership shall commence from [Date]. 5. CAPITAL: The partners shall contribute the following capital: (a) First Partner: Rs. _____/- (b) Second Partner: Rs. _____/- 6. PROFIT/LOSS SHARING: Profits and losses shall be shared in the ratio of [___:___]. 7. DRAWINGS: Each partner may draw up to Rs. _____/- per month for personal expenses. 8. BANKING: The firm's bank account shall be operated jointly/by [Partner Name]. 9. ACCOUNTS: Books of account shall be maintained and audited annually. 10. DISSOLUTION: The partnership may be dissolved by mutual consent or by giving [___] months' notice. IN WITNESS WHEREOF the parties have signed this deed on the date mentioned above. PARTNER 1: _______________ PARTNER 2: _______________ WITNESS 1: _______________ WITNESS 2: _______________

Step-by-Step Guide

1

Agree on Terms

Partners should discuss and agree on all terms including capital, profit sharing, duties, and exit terms.

2

Draft the Deed

Prepare the partnership deed covering all essential clauses. Consider engaging a CA or lawyer.

3

Execute on Stamp Paper

Print the deed on stamp paper of appropriate value (varies by state). Both partners must sign.

4

Get Notarized

Get the deed notarized for authentication. This is not mandatory but recommended.

5

Register the Firm

Register the partnership with the Registrar of Firms. While not mandatory, it provides legal benefits.

6

Obtain PAN and GST

Apply for PAN card and GST registration (if applicable) in the firm's name using the partnership deed.

Important Notes

  • Partnership registration is not mandatory but an unregistered firm cannot file suits against third parties.
  • The deed should be on stamp paper of appropriate value as per state stamp duty rules.
  • Partners have unlimited liability - each partner is personally liable for the firm's debts.
  • A minor can be admitted to the benefits of a partnership but cannot be a full partner.
  • The partnership deed can be amended by mutual consent of all partners through a supplementary deed.

Frequently Asked Questions

Is registration of a partnership firm mandatory?

Registration is not mandatory under the Indian Partnership Act, 1932. However, an unregistered firm cannot file a suit against third parties or other partners in court. It also cannot claim set-off in legal proceedings. Registration provides legal recognition and benefits.

What is the maximum number of partners in a firm?

For banking business, the maximum is 10 partners. For all other businesses, the maximum is 50 partners as per the Companies Act, 2013 (which limits the number of persons in a partnership).

How is a partnership different from an LLP?

In a traditional partnership, partners have unlimited personal liability for the firm's debts. In a Limited Liability Partnership (LLP), the liability of partners is limited to their contribution. LLPs also have perpetual succession and are governed by the LLP Act, 2008.

Legal Disclaimer

This format is provided for informational and educational purposes only. It does not constitute legal advice. The format may need to be adapted based on specific circumstances, applicable laws, and jurisdictional requirements. Always consult a qualified advocate or legal professional before filing any legal document. For more details, see our Disclaimer.

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