Partnership Deed’s format is given below.
PARTNERSHIP DEED THIS DEED OF PARTNERSHIP is executed at _______ on this ____ day of ____,20XX
Sh. X S/o _____ R/o____, hereinafter called ‘The First party’ which expression shall mean and include his heirs, successors, executors and legal representatives.
Sh. Y S/o Sh. ____ R/o ______, hereinafter called ‘THE SECOND PARTY’ which expression shall mean and include his heirs, successors, executors and legal representatives.
WHEREAS the First Party is in occupation as a tenant of property measuring ______ sq. ft. on the ground floor bearing No. ____________
AND WHEREAS the First Party is desirous of carrying on the business of interior decoration and the Second Party, being experienced in this trade, has approached the First Party to run this business with him jointly in partnership.
AND WHEREAS the parties have agreed to commence and run the business of interior decoration, furnishing, manufacture and sale of furnishing, manufacture and sale of furniture, soft furnishing and accessories in partnership.
NOW, THEREFORE, THIS DEED WITNESSES AS UNDER:
1. The name and style of this partnership business shall be M/s XYZ.
2. The business of this partnership shall be considered to have commenced on ______day of _______, 20XX.
3. That the principal place of business of this partnership shall be at __________. However, the same may be shifted or carried on elsewhere as well with the mutual consent of both the parties from time to time.
4. That the business of the partnership shall be interior decoration, furnishing, manufacture and sale of furniture, soft furnishing and accessories. However, the parties will also be entitled to extend their activities into business or manufacturing of any other item as well.
5. The shares of the parties in the profits and losses shall be as follows:
i) First Party – ____% ii) Second Party – ____%.
6. The initial capital has been contributed by both the parties by investing a sum of Rs. _______ each. If and when more funds are required for the business, the partners shall invest the same. However, any capital investment of the partners shall not carry any interest. In case loans or deposits are raised from outside i.e. friends and relations of the partner or the financial institutions then only those loans or deposits, which are taken with the written consent of both the partners and are entered in the books of accounts of the partnership, shall be binding on the firm. The partnership shall maintain regular books of accounts in accordance with the customs of trade and all dealings of the partnership shall be duly recorded in the same. The account books etc. shall be maintained in the place of business at ___________
7. Each of the partners shall be entitled to withdraw a sum of Rs. ________ every month which shall be adjustable in the final profit and loss account to be prepared every year.
8. The First Party shall also be entitled to withdraw a sum of Rs. _________ per month towards the rent he is paying to the Landlord in respect of the portion of property No. ____________.
9. The tenancy rights in respect of property No. __________ shall always vest in the First Party and whenever the partnership is dissolved for any reason whatsoever, the Second Party shall not be entitled to any right, title or interest in the same.
10. That the partnership shall maintain proper books of accounts in the normal course of business at the principal place of its business and the same shall always be open for inspection to the partners.
11. That the first accounting period of the partnership shall close on ________, 20XX and thereafter the financial year, shall run from ________ every year to ___________ of the subsequent of the English calendar.
12. That the bank accounts of the partnership and/or its branches shall be operated under the signatures of any of the partners.
13. That at the close of the accounting period/year, a trial balance, profit and loss account and balance-sheet etc. shall be prepared and the profit and loss in the ration enumerated above shall be credited / debited to the capital account of the partners.
14. That either of the parties would not be entitled to carry on similar or competitive trade individually or in partnership and in any other manner.
15. The partnership shall be at Will. However, whenever any party intends to dissolve the same or retire from the same, he shall give an advance notice of _____ days to the other party and during the period of notice, profit and loss account, balance sheets shall be completed to finalize the accounts in between as partiers as well as with the outsiders.
16. That in the event of any dispute arising between the partnership with respect to any clause of this document or the working of the partnership or for anything indicated thereof, the same shall be decided by arbitration in accordance with the provisions of the Arbitration Act and by no other process.
17. That in all other matters not provided herein, the partnership shall be governed by the Indian Partnership Act as applicable from time to time.
IN WITNESS WHEREOF the parties have signed this document on the date first above written in presence of the following witnesses.