Negotiable Instruments: Exhaustive Coverage by Adv Roma Bhagat. Register Now!
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kavksatyanarayana (subregistrar/supdt.(retired))     28 February 2020

You have not to query full facts.  As per heading of your query, two or more persons may enter into partnership business.  In the partnership deed agreement, (1) the name and nature of partnership business, (2) place and address of business, (3)investment of partners (4) ratio of profit or loss, (4) commencement of business, etc.,  shall be noted.  It is an optional registerable document. The partnership deed shall be executed on stamp worth Rs.500/- maximum in most states.  But it is advised to register it before the Registrar of Firms. for other details consult a local CA.

1 Like

Akshay (Advocate)     29 February 2020

Hi 

Thank you for your question

Partnership Agreement- It is a contract between two or more business partners that is used to establish the responsibilities, and profit and loss distribution of each partner, as well as other rules about the general partnership, like withdrawls, capital contributions, and financial reporting.

Partnership Deed- It is awritten document which specifies the terms & conditions of that partnership(Along with basic informat). It is not necessary to have a deed but it is advisable to have one.

Hope this will help you

Best regards,

Akshay Gupta

G.L.N. Prasad (Retired employee.)     29 February 2020

Depending on Registration status duties and responsibilities may vary.  Please go through duties and responsibilities of partner, and on mutual relation and relations with outsiders in case of registered and unregistered firms.

abhi jani   29 February 2020

Agreement of Partnership, also known as a Partnership Deed, is a document that outlines in details the rights and responsibilities of all Partners who sign the deed to carry on the business to earn profit. The deed contains various general clauses along with the specific once, if required based on the Act.

The deed must be duly signed by the partners, stamped and notarised. Any alteration in partnership deed can be made with the mutual consent of all the partners. Each partnership agreement differs based on business objectives.

A deed of partnership will ensure that all parties know exactly what their responsibilities are within the partnership along with what their particular powers are with regard to the partnership. It helps the business and partners to know their responsibilities and rights.ÔÇő

Below mentioned is the list of clauses in the partnership deed:

  1. Date of entering into the Agreement
  2. The name of the partnership firm
  3. The name and address of the partners respectively
  4. The nature of business activity of partnership firm
  5. The amount of capital contributed by each partner
  6. The profit sharing ratio among partners
  7. The amount of drawings that can be made by each partners
  8. Tenure of partnership
  9. The rights and duties of partners
  10. The interest to be allowed on capital and charged on drawings
  11. There should mention the name of the Partner who will be held responsible for management & day to day activity
  12. There should mention the period before which the notice can be given in case of Retirement of a partner
  13. The name of the person to whom the problem is to be referred as their Arbitrator and Jurisdiction City
  14. Settlement of amount on Dissolution of firm

You may contact LegalWiz.in for any further clarification. To make the process simple, affordable and hassle-free,

juststart (Legal Services)     21 August 2023

A Partnership Agreement, also referred to as a Partnership Deed, is a comprehensive document that delineates the rights and obligations of all signing Partners engaged in conducting a business to generate profits. This deed encompasses a range of general clauses, supplemented by specific ones as needed in accordance with relevant legal regulations. The partnership deed necessitates the authentic signatures of the partners, appropriate stamping, and notarization. Any modifications to the partnership deed must receive unanimous consent from all partners.

Each partnership agreement is uniquely tailored to align with the business objectives at hand. The partnership deed functions as a pivotal instrument ensuring that all parties possess a clear understanding of their roles within the partnership, as well as the extent of their authority in relation to the partnership. This proactive approach empowers the business and its partners with an unequivocal comprehension of their respective responsibilities and entitlements.



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