Template For A Deed of Partnership

TEMPLATE FOR A DEED OF PARTNERSHIP
DEED OF PARTNERSHIP
THIS DEED OF PARTNERSHIP is made on [Date, Month, Year] between:

1. [First Partner’s Name], s/o of [Father’s Name], residing at [Address] hereinafter referred to as “First
Party”
AND
2. [Second Partner’s Name] s/o of [Father’s Name], residing at [Address] hereinafter referred to as
“Second Party”
The First Party and Second Party are collectively referred to as “Partners” and individually as “Partner”.
We, the above mentioned Partners have entered into this partnership for the purpose of [insert the business
of the partnership firm]. We have formed the said partnership firm for carrying on the above mentioned
business and hereby execute partnership deed as follows.
1. The partnership firm shall conduct its business under the name and style of “[insert the name of the
proposed firm]”.
2. The place of business for the partnership firm will be located at [insert the place of business]. The
main place for transacting business may be changed and/or additional places may be created with
the consent of the above mentioned partners.
3. Investment in the said partnership firm shall be made by both the parties as per mutual agreement
based on the percentage of profit and loss. If more resources are required for the firm in future, both
the parties shall bring in additional personal capital or raise the money by securing loans from banks
or financial institutions on the basis of their personal reputation or on the reputation of the
partnership firm to meet the requirement of additional resources and our partnership firm shall be
entirely responsible for the loans so obtained.
4. Annual interest within the maximum limit of [●] percent shall be paid on the personal investment
made by the above mentioned partners with their mutual consent under the applicable provision of
the Income Tax Act, 1961. The interest so paid shall be decided as expenses in the profit and loss
account and shall be paid in cash to the partners or credited to their respective capital accounts.
5. This partnership shall be an “AT WILL” partnership and it shall last till the time the above
mentioned partners wish to continue the same. However, if either of the partners wants to dissolve
the partnership, he may do so after clearing the account for the duration of the partnership and by
modifying the same under the law.
6. Account shall be opened in the name of the above mentioned partnership firm in any banks or
financial institution and withdrawals from such account shall be made with the signature of the
partner nominated by the above mention partners.
7. For the progress and development of the said partnership firm, the Parties shall work sincerely to the
best of their abilities and perseverance and do nothing that may harm the interest of the partnership
firm. Further, they shall discuss from time to time the work done for the firm and keep one another
informed about whatever development that may take place.
8. The books of accounts of the said partnership firm shall be maintained properly in a routine manner and
the Parties and their respective successors shall have the right to examine the said accounts and shall be
kept at the place of business as mentioned in clause 2 of this agreement.
Further, the Parties have also mutually agreed that the books of accounts of the partnership firm for
the relevant financial year shall be prepared by the end of the month of March and any profit or loss
that may result after deducting all the expenses, interest either paid or credited to the partners salary
remuneration, commission etc. shall be shared every year between the above mentioned partners as
follows. This arrangement shall also be acceptable to the successors of the Parties.
9. The said partnership firm shall not be responsible for any transactions made by either of the partners
in his individual and personal capacity.
1
10. Neither of the partners shall transfer his share in the partnership firm to any third party, fully or
partially, without the consent of the other partner.
11. Dispute Resolution Process
11.1. Arbitration
Every dispute or difference arising between the partners as to the interpretation, operation, or
effect of any clause in the partnership which cannot be mutually resolved, shall be referred to
the arbitration. The decision of such an arbitrator shall be binding on the partners. Subject to
the aforesaid, the Arbitration and Conciliation Act, 1996 and the rules made thereunder shall
apply to the arbitration proceeding under its clause.
11.2. Governing Law
Except as aforesaid, the partnership shall further abide by the provisions of the Indian
Partnership Act, 1932.
12. If it becomes necessary during the course of partnership to amend any condition of this partnership deed
with mutual consent, a separate deed shall be made on a non-judicial stamp of required value and such
deed shall be treated as supplementary to this deed which shall continue to exist.
13. It shall be the duty of every partner to indemnify the firm if any loss is caused to the firm for that
partner’s fraud. The firm will indemnify the Partner when the partner made any payment or incurred
any liability in the proper conduct of business or acted in emergency.
14. A person can be introduced into the partnership firm as a Partner only with the consent of both the
existing Partners, and the new partner does not become liable for any act done prior to that person
becoming a partner.
15. A Partner may retire the Partnership firm by giving notice in writing to the other partner about his
intention to retire. A Partner continues to be liable to third parties with other Partners for any act of
the firm until a public notice of retirement is given.
Having read and understood the above mentioned partnership deed, both the parties affix their
respective signatures hereunder in sound state of mind in the presence of the witnesses and the same
shall be acceptable to their respective successors.
Agreed and accepted on this [please insert the date of execution] day of [please insert the month of
execution][please insert the year of execution].
SIGNED AND DELIVERED by [insert name of the FIRST PARTY]
________________________________
SIGNED AND DELIVERED by [SECOND PARTY]
________________________________
[NOTE: This is a draft Partnership deed entered between two individuals in India. It may be more detailed
depending upon the agreed terms, conditions and arrangement between the parties and also the status and
jurisdiction of the parties. Each agreement has to be drafted keeping in view the peculiarities involved in
each such situation in order to avoid any conflict of interest in the future or any legal obligations.]

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TEMPLATE FOR A DEED OF PARTNERSHIP

THIS DEED OF PARTNERSHIP is made on [Date, Month, Year] between:

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