How to make a partnership deed?

To proceed with how to make a partnership deed, let me explain to you in short what is partnership deed?

A partnership deed is the written agreement between the partners who have agreed to share profits of a business carried on by them. This basically contains terms and conditions to be followed between the partners.

Few contents of the partnership deed are as follows:

• Name, address, and type of business of the partnership firm.
• Name & address of all the partners
• Profit-sharing ratio.
• Rights, duties, and liabilities of all partners.
• Date of commencement of the partnership
• Method of settlement of dispute among the partners.
• Treatment of loss in case of insolvency of one or more partners.

Generally, a partnership deed contains all those matters which can affect the relationship between the partners. However, if there is no such agreement the partnership should follow the provisions mentioned under The Partnership Act, 1932.

Now coming to the main question how to make a partnership deed? See the process is not so complicated. The partnership deed may be oral or written, but as the oral agreement has no value for obtaining tax benefits, a partnership firm always prefers a written agreement.

To prepare the same the partnership deed must be prepared on a stamp paper and signed by all the partners as per Indian Stamp Act and copies of the same should be with all the partners and also must be filed by the registrar of the firm.

A deed may vary depending on the nature of the partnership they are engaged in. Generally, partnerships are of three types

• General partnership
• Limited partnership
• Limited liability partnership

the process of making deed is same for all but, the content of deed may vary depending on the liability of partners in the partnership.

Further to know more about the registration process of partnership firm you can refer the following link https://www.mca.gov.in/Ministry/actsbills/pdf/Partnership_Act_1932.pdf