This tool generates a draftpartnership deed for reference only. It does not constitute legal advice, must be executed on appropriate non-judicial stamp paper per your state's Stamp Act, and should be reviewed by a qualified professional before signing or registration with the Registrar of Firms.
Firm Details
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Partners
Partner 1
Partner 2
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DEED OF PARTNERSHIP THIS DEED OF PARTNERSHIP is made and executed on [DATE] at [PLACE] BETWEEN 1. [PARTNER NAME], residing at [ADDRESS] (hereinafter referred to as "Partner 1") 2. [PARTNER NAME], residing at [ADDRESS] (hereinafter referred to as "Partner 2") (The above-named partners are hereinafter collectively referred to as "the Parties" or "the Partners.") WHEREAS the Parties have agreed to carry on business in partnership on the terms and conditions hereinafter appearing: NOW THIS DEED WITNESSES AND THE PARTIES HERETO MUTUALLY AGREE AS FOLLOWS: 1. NAME AND BUSINESS The partnership business shall be carried on under the name and style of "[FIRM NAME]" (hereinafter referred to as "the Firm"). The Firm shall carry on the business of [NATURE OF BUSINESS]. 2. PRINCIPAL PLACE OF BUSINESS The principal place of business of the Firm shall be at [ADDRESS], or at such other place as the Partners may mutually agree. 3. DURATION The partnership shall commence from [DATE] and shall be a partnership "at will," terminable by any partner giving written notice to the other partners. 4. CAPITAL CONTRIBUTION The Partners shall contribute to the capital of the Firm as follows: Partner 1 ([NAME]): ₹[AMOUNT] Partner 2 ([NAME]): ₹[AMOUNT] Any further capital required for the business of the Firm shall be contributed by the Partners in their profit-sharing ratio, or as otherwise mutually agreed in writing. 5. PROFIT AND LOSS SHARING The net profits and losses of the Firm, after payment of interest on capital and remuneration to working partners (if any), shall be divided and borne by the Partners in the following ratio: Partner 1 ([NAME]): [SHARE]% Partner 2 ([NAME]): [SHARE]% 6. INTEREST ON CAPITAL Interest at the rate of 12% per annum shall be allowed on the capital contributed by each Partner, subject to the Firm having sufficient profits and to any applicable limit under the Income-tax Act for the time being in force. 7. BANK ACCOUNT OPERATION The Firm's bank account(s) shall be operated by any one of the Partners, or as the Partners may from time to time mutually agree and communicate to the bank in writing. 8. ADMISSION OF A NEW PARTNER No new partner shall be admitted to the Firm except with the written consent of all existing Partners, and upon execution of a supplementary deed recording the terms of such admission. 9. RETIREMENT OF A PARTNER Any Partner may retire from the Firm by giving not less than three months' prior written notice to the other Partners. The accounts of the Firm shall be settled with the retiring Partner in accordance with this Deed and applicable law. 10. DEATH OF A PARTNER In the event of the death of a Partner, the Firm shall not automatically stand dissolved as between the surviving Partners, who may continue the business, subject to settlement of the deceased Partner's account with their legal heirs/representatives in accordance with this Deed and applicable law. 11. ACCOUNTS AND AUDIT The Firm shall maintain proper books of account, which shall be closed and balanced as at the end of each financial year (31st March). The accounts, once approved by all Partners, shall be binding, save for manifest errors. 12. DISPUTE RESOLUTION Any dispute or difference arising between the Partners touching the business or affairs of the Firm shall, in the first instance, be resolved amicably, and failing amicable resolution, shall be referred to arbitration in accordance with the Arbitration and Conciliation Act, 1996. 13. DISSOLUTION The Firm may be dissolved by mutual consent of all Partners, or as otherwise provided under the Indian Partnership Act, 1932. On dissolution, the assets of the Firm shall be applied first towards its debts and liabilities, and the surplus, if any, distributed among the Partners in their profit-sharing ratio, or as otherwise agreed. IN WITNESS WHEREOF the Parties have set their hands on the day, month, and year first above written. _______________________ Partner 1 _______________________ Partner 2 WITNESSES: 1. _______________________ 2. _______________________
This draft is generated from a standard template and does not account for state-specific stamp duty rules or your firm's specific requirements. Have it reviewed before execution. Contact us.