A Partnership Deed is a written agreement among the partners specifying rules and regulations and is signed by all the partners and stamped as per the Stamp Act with an aim to prevent possible disputes & disagreements among the partners at a future date. The registration of Deed of Partnership is made under the Indian Registration Act, 1908.
Further, the deed shall be made out and registered under the Indian movable property Act together with other movable properties involved. An instrument of partnership may be constituted by more than one document.
Contents of a Partnership deed:
- The name of the firm
- Names and addresses of the partners
- Nature of business
- Date of commencement
- The amount of capital to be brought in by each partner
- The amount of drawings that may be permitted in anticipation of profits and the manner of withdrawal.
Usage of Partnership Deed:
- This Partnership Agreement can be used by Partners.
- Indicates the terms on which the business corporation is founded.
- When they wish to form a partnership for purpose of doing business together.
- Prevent in case future disputes prove difficult to arbitrate.
- Promote mutual understanding.
- Avoid mistrust.
Execution of partnership deed:
- The partnership agreement must be printed on a Non-Judicial Stamp Paper.
- Have value of Rs.100/- or more.
- The partnership agreement is usually signed in the presence of all the partners.
- Each of the partners would retain a signed original for his/her records.