Partnership deed

Sachin Agrawal (Querist) 23 June 2008 This query is : Resolved
Dear Sir,
Please provide me the draft deed of partnership of a running business concern with three existing partners and retirement of the fourth partner. The old deed consisted of four partners. The nature of business and its laibilities , trade name liceses remains unaltered.

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Guest (Expert) 23 June 2008
Dear Sachin,

I can send you but you can use your discretion to suit your purpose. Alter it carefully.

THIS DEED is executed on this _____ day of __________ between:

Sh.________________ s/o, Sh. __________________, r/o of _________________________,

Sh.________________ s/o, Sh. __________________, r/o of _________________________, (hereinafter referred to as "the existing Partners") of the one part

AND

Sh.________________ s/o, Sh. __________________, r/o of _________________________, hereinafter referred to as "the new partner") of the other part

The existing partners and the new partner hereinafter collectively referred to as the "Parties".

WHEREAS

1. The existing Partners have been carrying on the business of ___________ in partnership together at under the firm name M/s _______________ vide terms of a deed of partnership dated ____________ (hereinafter called "the existing partnership business").

2. Sh. __________ has expressed his desire to join the existing partnership business as the new partner and is ready to contribute a capital of Rs.__________

3. The existing Partners have agreed to introduce Sh. __________ as the new partner in the existing partnership business on the terms and conditions hereinafter appearing.

NOW THIS DEED WITNESSETH AS UNDER:

1. Term of Partnership

The partnership hereby constituted (hereinafter called "the new partnership") shall be deemed to have commenced on the day of ____________ and from such date the deed of partnership dated _________shall be superseded by this deed and shall continue unless otherwise determined by the Parties.

2. Name

That the business of the Partnership shall be carried on under the same name and style as that of the existing partnership business i.e. M/s ____________________.

3. Place of Carrying Business

That the business of Partnership shall be carried from ________________________ or any other place as may be agreed upon by the Parties.

4. Capital Contribution & Interest on Capital

The capital of the new partnership shall be Rs. __________ whereof Rs.________ represents the capital of the existing partnership contributed by the partners and the balance of Rs ________ shall be contributed by the new partner __________ as his share. However, further funds required for the new Partnership shall be contributed or arranged by the Parties equally and in such manner as may be mutually agreed upon by and between the Parties from time to time. Interest at the rate of ____ percent per annum or as may be prescribed under Section 40 (b) of the Income Tax Act, 1961 or any other applicable provisions as may be in force under the Income tax assessment of Partnership firm for the relevant accounting period shall be payable to the Parties on account standing to the credit of the account of the Parties. Such interest shall be calculated and credited to the account of each partner at the close of each accounting year. However, in case of loss or lower income, rate of interest can be nil or lower than ____ percent as may be agreed upon by and between the Parties from time to time.

5. Remuneration

That the new partner shall also be a working partner in the firm and he shall be entitled to a remuneration of Rs. ________ per month which shall be paid by the __th of each month. The Parties shall be entitled to increase or reduce the above remuneration as may be agreed upon from time to time by and between the parties.

6. Drawings by Partner

The new Partner shall be entitled to draw (in addition to the remuneration as per clause 4) out of the partnership business any sum or sums of money not exceeding Rs. ________ per month for his own use, such sums to be duly accounted for on each succeeding settlement of accounts and division of profits of the partnership and if any excess drawings is found on any such settlement, the same shall be refunded by the new partner concerned (with interest at ___% per annum).