Partnership Deed Format -Sample partnership Agreement (Formation of Partnership)

Partnership deed is an agreement between the partners of a firm that outlines the various terms and conditions of partnership among the partners. A Partnership Firm is one of the popular types of organizations for starting a new business. The smooth and successful running of a partnership firm requires clear understanding among its partners regarding the various policies governing their partnership. The partnership deed serves this purpose. It specifies the various terms such as profit/loss sharing, salary, interest on capital, drawings, admission of a new partner, etc. in order to bring clarity to the partners.

Though issuing a partnership deed is not mandatory, but it’s always better to enter into a partnership deed to avoid any possible disputes and litigation among the partners. The agreement can be made between two or more partners. It must be stamped and signed by all the partners.

The partnership deed contains the following details:

i) Business of the firm: Business to be undertaken by the partners of the firm

ii) Duration of Partnership: Whether the duration of the partnership firm, is for limited period or for a specific project

iii) Sharing of profit/loss: Ratio of sharing profits & losses of firm among partners

iv) Salary and commission: Details of the salary, and commission if any, payable to partners

v) Capital contribution: Capital contribution to be made by each partner and the interest on said capital to be paid to partners

vi) Partner’s Drawings: Policy regarding the drawings from the firm allowed to each partner and interest if any to be paid by partner, to firm on such drawings

vii) Partner’s Loan

viii) Duties & Obligations of partners

ix) Admission, Death & Retirement of partner

x)Accounts 

xi)Audit

You can download Template of Partnership Deed form here..

👍Partnership Deed

Thanks for Reading this, if you have any suggestion you can comment & if you want to get more help like this and other legal documents then you can follow this blog.

You also can read The Scope After Becoming Chartered Accountant