Partnership deed and the importance of it in Partnership firms

What is a Partnership Deed?

A Partnership deed is basically a document that outlines in details the rights and responsibilities of all parties to a business operation. It was designed to guide the partners in the conduct of the business and avoid unnecessary misunderstanding, harassment, and unpleasantness among the partners in the event of any dispute. The Partnership deed registration is made under the Indian Registration Act, 1908 so as to avoid apprehension of the Partnership Deed. Alternatively, a partnership firm can also be created without registration under the Indian Registration Act, by just entering into a deep of Partnership.

Click here to download word format of Partnership Deed.

Importance of the Partnership Deed

Following are the objectives of the Partnership Agreements:

  1. The Partnership is formed for doing business together.
  2. This deed contains the agreement among themselves if in case of future disputes.
  3. It is made to promote mutual understanding and avoid mistrust among the partners.
  4. It reveals the terms and conditions on which the business corporation is founded.
  5. It makes the firm eligible for obtaining PAN, applying for the bank loan, opening a bank account in Partnership Firm name, getting GST registration or IEC Registration/ FSSAI License in partnership firm name etc.

Read more about Offer Letter, Relieving Letter and Resignation letter

Things to do while executing a deed of Partnership

Always remember, this deed must be printed on a Non-Judicial stamp paper with a value of Rs. 100/- or it is more based on the value of properties held in the partnership firm. It should be signed by all the Partners and each of the Partners would retain a signed original for his/her records. As soon as the document will be signed by the partners, that document is witnessed and the signed deed will be held by each of the Partners is duplicate or triplicate.

Sample format for Deed of Partnership 

 

You can contact us to get done your procedure of partnership registration. Our experts will file your application of partnership firm registration on behalf of you and take away your headache. Also, send your query on Email: contact@legalraasta.com and give us a call at 8750008585.

Related Articles:

Partners in a Partnership Firm

Differences between LLP and Partnership

Benefits of Limited Liability Partnership

About the Author:

Himanshu Jain is the founder of LegalRaasta – India's top portal for registration, trademark, return filing and loans. Himanshu is a CFA (US) & MBA (ISB). He has over 8+ years of corporate / consulting experience with top firms like McKinsey