Partnership Deed
A Partnership Deed is the constitutional document of a partnership firm. It defines profit-sharing, capital contributions, management rights, and dissolution terms. Registration of the firm requires a properly executed deed.
What is Partnership Deed?
A Partnership Deed is the agreement between two or more persons who have agreed to share profits and losses of a business. In India, partnerships are governed by the Indian Partnership Act, 1932. While registration of the deed is optional, an unregistered firm cannot file a suit against third parties or partners to enforce rights. The deed must be on non-judicial stamp paper and signed by all partners before a notary. For professional firms (CA, advocates, doctors), specific professional body rules also apply.
What you get
- Customised partnership deed
- Capital contribution and profit-sharing ratio
- Management rights, duties, and decision-making
- Partner salaries, commissions, and interest on capital
- Admission and retirement of partners
- Dissolution and winding-up provisions
- Dispute resolution mechanism
- Word + PDF format for execution on stamp paper
Documents required
- Names, addresses, and PAN of all partners
- Name and address of the partnership firm
- Nature and principal place of business
- Capital contribution of each partner
- Profit and loss sharing ratio
- Commencement date of the firm
- Any specific management or banking arrangements
How it works
Share Partner Details
Provide the names, capital contributions, profit-sharing ratio, and management arrangements for all partners.
Lawyer Drafts
We draft a comprehensive partnership deed compliant with the Indian Partnership Act, 1932, tailored to your business.
Review & Execute
All partners review and sign the deed on non-judicial stamp paper before a notary.
Register (Optional but Recommended)
Submit the deed to the Registrar of Firms for registration. We assist with the application and registration process.
Pricing on Request
Every situation is different — get a custom quote tailored to your exact needs.
Frequently asked questions
Is registration of a partnership firm compulsory?
Registration is optional under the Indian Partnership Act, 1932, but strongly recommended. An unregistered firm cannot file a suit against third parties to enforce contract rights, and partners cannot sue each other to enforce rights under the deed.
What stamp duty is applicable to a Partnership Deed?
Stamp duty on a partnership deed varies by state and the capital of the firm. Typically ranges from ₹200 to ₹1,000. For high-value firms, it may be calculated as a percentage of capital. We advise on applicable stamp duty for your state.
Can a minor be a partner in a partnership firm?
A minor cannot be a partner but can be admitted to the benefits of an existing partnership with the consent of all partners. The minor's liability is limited to their share of the firm's assets.
What is the difference between a partnership firm and an LLP?
In a partnership firm, partners have unlimited personal liability. In an LLP (Limited Liability Partnership), partners' liability is limited to their contribution. LLPs also have separate legal entity status and must file annual returns with the MCA.
Can the deed be amended after execution?
Yes. A supplementary deed or deed of amendment can be executed by all partners to modify any terms — change in profit ratio, admission of a new partner, change in business, etc. We can draft supplementary deeds as well.
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