Partnership Deed Format India | Free PDF/Word Download

About this agreement

Title: DEED OF PARTNERSHIP TO START AND CARRY BUSINESS AND SHARE PROFIT FROM BUSINESS BETWEEN EACH OTHER

Are you planning to launch a business with partners and need a solid Deed of Partnership Format to protect everyone's interests? This comprehensive legal template ensures clear terms for starting, operating the business, and sharing profits fairly among partners in India.

What is a Deed of Partnership?

A Deed of Partnership Format is a legally binding written agreement governed by the Indian Partnership Act, 1932. It formalizes the relationship between two or more individuals who agree to start and carry on a business together, sharing its profits (and losses) as per the agreed ratio. Unlike oral agreements, a written Deed of Partnership provides evidentiary value in courts, prevents disputes, and outlines rights, duties, and exit strategies. It's crucial for small businesses, startups, and professional firms looking to establish a partnership firm without forming a company.

Why is a Deed of Partnership Format Important?

In India, partnerships are popular for their simplicity and low compliance costs, but without a proper Deed of Partnership Sample, misunderstandings can lead to dissolution or litigation. This format ensures compliance with Section 4 of the Partnership Act, defining the partnership's nature, duration, and profit-sharing mechanism. Key benefits include:

Clarity on Roles: Prevents conflicts by specifying each partner's responsibilities.
Profit and Loss Sharing: Customizable ratios for equitable distribution.
Dispute Resolution: Includes arbitration clauses for quick settlements.
Ease of Registration: Ready for registration with the Registrar of Firms for legal recognition.
Tax Advantages: Helps in filing partnership returns under Income Tax Act.

Using our ready-to-use Deed of Partnership Format saves time and money compared to drafting from scratch or hiring expensive lawyers.

Key Elements of the Deed of Partnership Template

A professional Deed of Partnership Format in India must include these essential sections:

Parties Involved: Full names, addresses, and contact details of all partners.
Business Name and Nature: Name of the firm, objectives, and scope of business activities.
Capital Contribution: Amount and mode of contribution by each partner.
Profit and Loss Sharing Ratio: Agreed percentage for profits, losses, and drawings.
Duties and Rights: Roles, decision-making powers, and management structure.
Accounts and Audit: Maintenance of books, audit frequency, and access rights.
Admission and Retirement: Procedures for new partners or exiting ones.
Dissolution Clause: Conditions for ending the partnership.
Non-Compete and Confidentiality: Protecting business interests.
Signatures and Witnesses: For legal enforceability.

Our customizable PDF/Word format includes all these, tailored for Indian legal requirements.

Who Should Use This Deed of Partnership Sample?

This legal template is ideal for:

Entrepreneurs starting small businesses like retail shops, consultancies, or trading firms.
Professionals such as doctors, lawyers, or CAs forming group practices.
Existing partners formalizing verbal agreements to avoid future disputes.
Businesses in civil, commercial, or service sectors across India.

Whether in Mumbai, Delhi, or any state, this Deed of Partnership Format meets pan-India standards.

Download Your Deed of Partnership Format Now!

Get instant access to our free downloadable Deed of Partnership Sample in PDF and Word formats. Customize it easily with our AI tools or seek legal help for specific clauses. Ready-to-use and professionally drafted, it's perfect for quick setup.

Important Note

While this Deed of Partnership Template is designed to be legally sound and customizable, it's recommended to consult a local lawyer for personalization based on your state's laws or unique business needs. For related documents, explore our Partnership Agreement Format, Dissolution Deed, or Supplementary Partnership Deed. Keywords: Deed of Partnership Format India, free download partnership deed sample, customizable legal template Word/PDF, ready to use partnership agreement India.

DEED OF PARTNERSHIP TO START AND CARRY BUSINESS AND SHARE PROFIT FROM BUSINESS BETWEEN EACH OTHER

Non-Judicial

This DEED OF PARTNERSHIP is made at _________ on this the _____ day of _____ month ______ year.

B E T W E E N

SRI/SMT ________________, son/daughter/wife of ______________, ________ by faith, __________ by occupation, residing at ____________________________(Address with pin code, P.O, P.S and District), hereinafter called the “FIRST PARTY” (which expression shall included by or repugnant to the context deemed to include his heirs, executors, successors, representatives, administrators and assigns) of the “ FIRST PART ”.

A N D

SRI/SMT ____________________, S/D/W of _______________, ______ by faith, __________ by occupation, residing at ________________________________( Address with pin code, P.O, P.S and District), hereinafter called the “SECOND PARTY” (Which expression shall unless excluded by or repugnant to the context be deemed to include his heirs, executors, successors, representatives and assigns) of the “OTHER PART”

W H E R E A S THE FIRST PARTY AND SECOND PARTY hereof have decided to start business of _________________ with/to various Govt./Non Govt. Department/MES Department in partnership under the name and style of ___________________(Name of Firm/Company).

A N D

W H E R E A S the parties hereto have agreed to start and carry on the business of contract and supply as aforesaid in partnership under certain terms and conditions.

A N D

W H E R E A S the Parties hereof desire that the terms and conditions so agreed amongst them be reduced in writing, in order to avoid any doubts, disputes or ambiguities thereabout in future.

A N D

W H E R E A S in order to avoid future disputes, doubts & differences, between themselves it is deemed fit to reduce in writing the terms & conditions of the partnership business.

NOW THIS INDENTURE WITNESSETH that the above named parties hereby have formed and constituted a partnership firm between themselves for the purpose of carrying on business of _________________ business as aforesaid and any other business which may be decided mutually by the partners under the name & style of ____________________(Name of Firm/Company) under the following terms and conditions of partnership :-

NOW THIS IDENTURE WITNESSETH that the parties hereto hereby mutually covenant, agree and declare as follows :-

NAME:

That the Partnership Business shall be carried of under the name and style- __________________________ or to such other name as may be mutually agreed to by and between the parties hereto.

NATURE OF BUSINESS :

That the business of the Partnership will be that of _________________ with /to various Govt./Non Govt. Department/MES Department and in other line or lines as may be agreed upon between the parties from time to time. Partners shall be at liberty to embark upon any other like trade, adventure or undertaking by their mutual consent.

PLACE OF BUSINESS :

That the Partnership Business shall be carried initially on ____________________________(Address with pin code, P.O, P.S and District).

COMMENCEMENTS AND DURATION :

That the Partnership has commenced and shall be deemed to have commenced on and from the ______ day of _______ month, _______ year and its duration would be at the will of the partners and if in any case, any Partner desires to retire from the partnership he shall be at liberty to do so by giving one month’s notice in writing to the other partner.

ACOUNTING YEAR :

That the accounting year of the firm shall be 1st of April to the last day of March, known as financial year.

CAPITAL :

That the Capital of the Partnership Firm shall be contributed by the Partners time to time as per requirement of the business.

SHARE OF PROFIT AND LOSS :

That the Net Profit or Losses of the Partnership shall be divided or borne by the Partners in the following proportions :

(i) ___________________ (Name of Partner) ….. ______%

(ii) ___________________ (Name of Partner)….. _____%

8. BOOKS OF ACCOUNTS :

That the books of accounts shall be kept at the place of business and or such other place or places as the Partners may mutually agree from time to time.

9. BANK ACOUNT :

That the parties hereto shall open one or more bank account in the name of the Partnership Firm in any Nationalised Bank or Bank or Banks only if they decide so, and such account shall be operated by any of the First Party _______________(Name of first partner).

10. ADMISSION OF THE NEW PARTNER :

New Partner shall be admitted into the said firm as per joint will of all the Parties/ Partners of the firm during its existence.

11. RETIREMENT:

That if any of the said partner desires to retire from the Business he shall give to the other Partner one month notice in writing.

12. DEATH:

That with the death of a partner the partnership firm shall not be dissolved but can be continued by taking the legal heir of the deceased partner as a new partner in his place.

13. ARBITRATION:

That all the disputes which may arise between the partners whether during or after the determination of the partnership or whether in relation to the interpretation of the these presents or to any act or omission of any parties to the disputes or as to any act which ought to be done by the parties in disputes or either of them or in relation to any other matter whatsoever touching the partnership firm shall be referred to arbitration as per provisions of Arbitration and Conciliation Act.

14. MISCELLENOUS:

1) a) That the capital as well as further fund/ funds as may be required for the purpose of the business shall be contributed or arranged by the each partners in such manner as mutually agreed upon by and between the partners from time to time. Interest will be payable at the rate of 12% per annum or as may be prescribed under Section 40 (b) (iv) of the Income Tax Act, 1961 or any other applicable provisions as may be in force in the Income Tax Act, 1961 for the assessment of the Partnership Firm for the relevant accounting period and shall be payable to the partners on the amount standing to the credit of the account of such partners and such interest shall be calculated and credited to the account of such partner at the close of the accounting year.

HOWEVER, in case of loss or lower income, rate of interest can be nil or lower than 12% as may be mutually agreed by the partners from time to time.

(b) That all the parties of the firm are working partners and have agreed to devote their time and attention to the business of the partnership and in consideration thereof, they are entitled to received remuneration equally from the firm subject to the following limit :

i) On the First Rs. ________ of the book profit : ____%

ii) On the Next Rs. _________ : ____%

iii) On the balance of the book profit : ____%

(It has been agreed by and between the partners that the terms “Book Profit’ shall have the same meaning as it has been defined in explanation 3 to Section 40(b) of the Income Tax Act, 1961).

2) That each of the parties hereto shall have full authority to carry on partnership business and to do and execute all acts and deeds on behalf of the partnership and bind the other partners in all matters relating to the partnership including without limitations of the following acts :-

i) To receive and give receipts for moneys and to adjust and settle accounts relating to the partnership and compound debts due to the partnership.

ii) To grant and execute power or powers of Attorney in favour of any person or persons and to revoke such power or powers of Attorney as and when necessary after mutual understanding of all the partners for the benefit of the firm.

iii) To borrow money or raise loans from any person/s, bank/s, Government authority/ies and/or financial institution/s and to sign execute and submit all documents relating thereto.

iv) To ask, demand, sue for, recover and receive whether in cash, cheque or in any other mode from any government department, private establishment, local authority or individual, all moneys due, or articles and things which shall become due, owning or payable to, or recoverable by the firm and to give an effectual receipt or discharge for the same.

v) To apply for all kinds of licenses, and to secure them, and also to apply for quotas, rights and registrations and for that purpose to appear before authorities appointed for the same and to sign all papers in this connection.

vi) To appear and represent the firm before the Commercial tax, Income tax, Customs, Directorate of Cottage & small Scale Industries, Municipalities Provident and other Labour Law authorities and all other Government departments whether original or appeals, and also to appear in any court or tribunal in connection with any suit or proceedings whether civil or criminal in which the firm is interested, and to sign all papers, documents, applications, bonds, returns etc. in connection with the said matters.

vii) To submit any dispute relating to the firm, or the business of the firm to arbitration.

viii) To submit tenders on behalf of the firm, to apply and obtain tender & contract forms, to negotiate and finalise contracts whether against tender or otherwise with any person/s, department/s Government or otherwise.

ix) To act on behalf of the firm generally.

x) That all the matters not specifically provided for, the provisions of the Indian Partnership Act, 1932 as it stands amended, revised and modified from time to time shall apply.

xi) That any of the above terms may be varied or altered or modified by the mutual consent of the parties hereto, be either expressed in writing or implied by the conduct of the parties.

IN WITNESSES WHEREOF the parties hereto have put their respective hands and seal on this Deed of Partnership on the __________day of _________ month ________ year mentioned hereinabove.

WITNESSES :

_____________________________

1. Name of First Partner

_____________________________

2. Name of Second Partner

Drafted, explained and printed in my office:

Advocate/___________(Name of Place)

0 PDF downloads

0 Word downloads

Download PDF₹99 Download Word₹99

Important Guidelines

Deed of Partnership: A Mini-Guide for Starting a Business A Deed of Partnership is a crucial document outlining the terms and conditions under which two or more individuals agree to start and run a business together. It defines their rights, responsibilities, and profit-sharing arrangements.

Where it's Used:

Formally establishes the partnership: This document serves as a legal framework to avoid future disputes and ensures clarity in your business relationship. Defines key terms: It specifies details like the business name, nature of operations, capital contribution by each partner, profit-sharing ratio, roles and responsibilities, decision-making procedures, and duration of the partnership. Protects partners' interests: It outlines dispute resolution mechanisms, procedures for adding or removing partners, and dissolution arrangements.

Common Mistakes to Avoid:

Incomplete information: Clearly state all partners' names, addresses, and contact details. Define the business type, location, and initial investment of each partner. Ambiguous language: Use clear and concise language to avoid future misinterpretations of rights and obligations. Missing clauses: Address crucial aspects like accounting and record-keeping practices, profit distribution schedules, expenses sharing, decision-making processes, and conflict resolution mechanisms. Legal loopholes: Consult a lawyer to ensure the deed complies with local partnership laws and regulations. Unregistered or unsigned: Obtain original signatures of all partners and consider registering the deed as required by local laws. Additional Tips:

Attach an inventory of initial assets and liabilities contributed by each partner. Include provisions for contingencies like partner death or incapacitation. Review and update the deed regularly to reflect changes in the business or partnership composition. By following these guidelines and avoiding common pitfalls, you can draft a strong and effective Deed of Partnership that forms the foundation for a successful and collaborative business venture. Remember, legal advice is highly recommended for complex situations.

I hope this helps! Let me know if you have any other questions.

Frequently asked questions

What is a Deed of Partnership?→

A Deed of Partnership is a legal agreement under the Indian Partnership Act, 1932, outlining terms for starting and running a business, profit-sharing, duties, and dissolution among partners in India.

Is this Deed of Partnership valid in India?→

Yes, it is legally valid across India when properly executed, stamped with required duty, and optionally registered with the Registrar of Firms for enforceability.

Do I need to pay stamp duty on this partnership deed?→

Yes, stamp duty is mandatory in India and varies by state (e.g., ₹200-₹500 for partnerships); get it franked or purchase stamps before signing the agreement.

In what format can I download this Deed of Partnership?→

Download it in editable Word (.docx) or ready-to-print PDF format for convenient use and customization in your Indian business setup.

Can I edit or customize this partnership agreement?→

Absolutely, this customizable template allows editing partner names, profit ratios, capital contributions, and other clauses to fit your specific needs in India.

Who should use this Deed of Partnership and when?→

Use it when two or more individuals in India decide to form a partnership firm to start a business; ideal for defining rights, liabilities, and profit-sharing legally.

DEED OF PARTNERSHIP TO START AND CARRY BUSINESS AND SHARE PROFIT FROM BUSINESS BETWEEN EACH OTHER

Non-Judicial

This DEED OF PARTNERSHIP is made at _________ on this the _____ day of _____ month ______ year.

B E T W E E N

A N D

A N D

W H E R E A S the parties hereto have agreed to start and carry on the business of contract and supply as aforesaid in partnership under certain terms and conditions.

A N D

W H E R E A S the Parties hereof desire that the terms and conditions so agreed amongst them be reduced in writing, in order to avoid any doubts, disputes or ambiguities thereabout in future.

A N D

W H E R E A S in order to avoid future disputes, doubts & differences, between themselves it is deemed fit to reduce in writing the terms & conditions of the partnership business.

NOW THIS IDENTURE WITNESSETH that the parties hereto hereby mutually covenant, agree and declare as follows :-

NAME:

That the Partnership Business shall be carried of under the name and style- __________________________ or to such other name as may be mutually agreed to by and between the parties hereto.

NATURE OF BUSINESS :

PLACE OF BUSINESS :

That the Partnership Business shall be carried initially on ____________________________(Address with pin code, P.O, P.S and District).

COMMENCEMENTS AND DURATION :

ACOUNTING YEAR :

That the accounting year of the firm shall be 1st of April to the last day of March, known as financial year.

CAPITAL :

That the Capital of the Partnership Firm shall be contributed by the Partners time to time as per requirement of the business.

SHARE OF PROFIT AND LOSS :

That the Net Profit or Losses of the Partnership shall be divided or borne by the Partners in the following proportions :

(i) ___________________ (Name of Partner) ….. ______%

(ii) ___________________ (Name of Partner)….. _____%

8. BOOKS OF ACCOUNTS :

That the books of accounts shall be kept at the place of business and or such other place or places as the Partners may mutually agree from time to time.

9. BANK ACOUNT :

10. ADMISSION OF THE NEW PARTNER :

New Partner shall be admitted into the said firm as per joint will of all the Parties/ Partners of the firm during its existence.

11. RETIREMENT:

That if any of the said partner desires to retire from the Business he shall give to the other Partner one month notice in writing.

12. DEATH:

That with the death of a partner the partnership firm shall not be dissolved but can be continued by taking the legal heir of the deceased partner as a new partner in his place.

13. ARBITRATION:

14. MISCELLENOUS:

HOWEVER, in case of loss or lower income, rate of interest can be nil or lower than 12% as may be mutually agreed by the partners from time to time.

i) On the First Rs. ________ of the book profit : ____%

ii) On the Next Rs. _________ : ____%

iii) On the balance of the book profit : ____%

(It has been agreed by and between the partners that the terms “Book Profit’ shall have the same meaning as it has been defined in explanation 3 to Section 40(b) of the Income Tax Act, 1961).

i) To receive and give receipts for moneys and to adjust and settle accounts relating to the partnership and compound debts due to the partnership.

iii) To borrow money or raise loans from any person/s, bank/s, Government authority/ies and/or financial institution/s and to sign execute and submit all documents relating thereto.

vii) To submit any dispute relating to the firm, or the business of the firm to arbitration.

ix) To act on behalf of the firm generally.

x) That all the matters not specifically provided for, the provisions of the Indian Partnership Act, 1932 as it stands amended, revised and modified from time to time shall apply.

xi) That any of the above terms may be varied or altered or modified by the mutual consent of the parties hereto, be either expressed in writing or implied by the conduct of the parties.

IN WITNESSES WHEREOF the parties hereto have put their respective hands and seal on this Deed of Partnership on the __________day of _________ month ________ year mentioned hereinabove.

WITNESSES :

_____________________________

1. Name of First Partner

_____________________________

2. Name of Second Partner

Drafted, explained and printed in my office:

Advocate/___________(Name of Place)

0 PDF downloads

0 Word downloads

Download PDF₹99 Download Word₹99