A Partnership Deed is one of the popular types of organization for starting a new business. It specifies the various terms such as profit/loss sharing, salary, interest on capital, drawings, admission of a new partner, etc.
A Partnership Deed is an agreement done between two or more people who want to start a new business & to share the profits & losses they come together to form a partnership such written agreement is known as 'Partnership Deed'. One can also call it is a 'Partnership Agreement'. This article talks about drafting of a Partnership Deed.
1. Number of Members:
In a Partnership, there is a minimum requirement for two members.
2. Minimum capital requirement:
There's no limitation on the requirement of capital at the beginning of the business. Partners can start the business with as much as minimum capital they want.
3. The name should be different:
While deciding a name for the firm the care should be taken that it should not indicate any undesirable intention, it should be simple & easy.
A 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: It depends on the duration of the partnership firm, is for a limited period or for a specific project.
iii) Sharing of profit/loss: Ratio of sharing profits & losses of the 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.
vii) Partner's Loan
viii) Duties & Obligations of partners
ix) Admission, Death & Retirement of partner
x) Accounts & Audit
The formalities related to Partnership Deed only get completed when it is registered. Online Legal India™ team acts as your legal concierge and works round the clock to give you support at an economical price. We have served more than 1,20,000 happy customers and have the finest legal brains who would give you all-round assistance covering the country.
