Now This Deed of Partnership Witnesseth As Under: 1. Name

DEED OF PARTNERSHIP

THIS DEED OF PARTNERSHIP is made and executed on this _____ day of __________ by
and between:
a. Sh.________________, Currently residing at__________________________ with the
permanent address at ___________________________, hereinafter referred to as “First Party”.
b. Sh.________________, currently residing at __________________, with the permanent
address at _________________________, hereinafter referred to as the "Second Party".
The First and Second Party hereinafter shall be collectively referred to as the "Parties".
NOW THIS DEED OF PARTNERSHIP WITNESSETH AS UNDER:
1. Name
That the hereby form a partnership under the name of ____________________.
2. Term of Partnership
That the Partnership shall be deemed to have begun from _____________ and shall continue
unless otherwise terminated by the Parties.
3. Place of Carrying Business
That the principle office of the business shall be ________________________ .
4. Profit and Loss

That irrespective of capital investment, profits or losses of Partnership shall be divided and
endured by the Parties equally. A separate income account shall be maintained for each partner
and any Partnership profit or loss shall be charged or credited to that separate income account.
In event of no credit balance in either of the party’s income account, any loss arising shall be
charged to their capital account.
5. Capital Contribution & Interest on Capital
That the necessary capital for the Partnership shall be contributed by the partners in cash. Interest
shall be charged 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. Separate capital
accounts shall be maintained for each of the partner.
In case of loss or lower income, rate of interest can be nil or decreased to a lower amount ____
percent. This shall be agreed upon by the parties, from time to time.
6. Remuneration
That the First Party and the Second Party shall be the working partners in the firm, and they shall
be entitled to a salary of Rs. ________ per month and Rs. ________ per month, respectively. The
parties, upon mutual agreement can reduce or increase the salaries. The salaries shall be
given to both the parties on the ___ day of the month.
7. Maintenance of Accounts
That all the books and documents related to the accounts of the Partnership shall be
maintained with utmost precision and shall be closed on the 31st March of every year.
These documents shall only be opened to inspection of either of the parties at the Principle place
of business of this Partnership. Books shall always be available to either of the parties.
9. Operation of Bank Accounts
That all the funds of the partnership shall be deposited in such a checking account or accounts as
decided and designated by the partners.
10. Partners to work in the interests of Partnership
Each Partner shall --
a. work honestly, be perseverant and shall devote their time and attention to the partnership and
to any business associated with it.
b. be just and faithful to other partners.
c. give honest and every detail related to any matter, which may affect the proper
functioning of the partnership.
d. punctually pay and discharge their debts and liabilities which may arise in their personal
capacity.
e. shall do nothing to harm the interests of the Partnership.
11. Partners not to do certain Acts

Neither partner shall,
(a) Engage or be concerned or interested in any business or occupation which has the
potential of affecting the Partnership, directly or indirectly;
(b) Take any apprentice or hire or dismiss any agent or servant of the firm, without the
permission and consultation of the other Partner;
(c) Lend any of the moneys or deliver, upon credit, any of the goods of the firm to any person or
persons without the due consultation or permission of the other partner or any party to whom the
other partner shall have previously in writing forbidden him to trust;
(d) Accept, in the ordinary course of business, any security or promise for the payment of money
on account of the firm without the consultation or permission of the other partner;
(e) Draw or accept or endorse any bill of exchange or promissory note on account of the firm
without the consultation or permission of the other partner;
12. Introduction of a New Partner
That if all the partners agree, a new partner maybe added to the firm in addition to and terms
of such agreement shall be mutually drafted between the existing partners and the future
partner.
13. Death or retirement of a Partner
That upon the death of either partner, the Partnership shall continue with the nominee/
legal heir of such Partner, joining the firm.
OR if, during the continuance of the partnership, any partner retires or dies, the surviving
partner or partners shall have the option, to purchase the deceased’s interest by giving a
notice in writing to the retiring partner or to the legal representatives of the deceased
partner, as the case may be, within a period of ___ days after the retirement or death.
The purchase price, in such an event, shall be such price as is mutually decided by and
between the surviving parties.
If, however, the option to purchase share of the retiring or deceased partner is not exercised as
aforementioned, then the partnership shall be wound up and the assets distributed as per the
provisions of the Indian Partnership Act, 1932.
14. Dissolution of Partnership
(a) That the Partnership is at will and may be dissolved at any time by mutual agreement of
the partners.
(b) That in the case of dissolution of the firm the net realization on the sale of assets shall be
distributed amongst the Parties equally after meeting the liabilities of the firm.
(c) The partnership shall be sold along with other assets of the business.
(d) The assets of the partnership shall be distributed in the following manner:-
i. To pay for the payment of any liabilities that the partnership has incurred;
ii. To pay for the liquidating expenses and obligation;
iii. To discharge the balance of the income AND capital accounts of the
partners;
iv. To equalize the capital account of all the partners to the partnership.
15. Arbitration Clause

Every dispute or difference arising between the partners as to the interpretation, operation,
or effect of any clause in the partnership OR any dispute arising due to breach of the
contract which cannot be mutually and peacefully resolved, shall be referred to the
arbitration of ________________(name of the Arbitrator) failing him, to any other arbitrator
mutually chosen by the partners in writing. Any decision given by the arbitrator shall be binding
on all partners of the Partnership. The decision of such an arbitrator shall be binding on the
Parties of the Partnership. The aforesaid shall be governed by the Arbitration and Conciliation
Act, 1996 and the rules made thereunder shall apply to the arbitration proceedings under this
clause.
IN WITNESS WHERE OF, the parties have set their hands this ___________ day of
___________.

First Party Second Party

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Now This Deed of Partnership Witnesseth As Under: 1. Name

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DEED OF PARTNERSHIP

NOW THIS DEED OF PARTNERSHIP WITNESSETH AS UNDER:

4. Profit and Loss

11. Partners not to do certain Acts

15. Arbitration Clause

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