Partnership deed is a partnership agreement between the partners of the firm which outlines the terms and conditions of the partnership between the partners. The reason for an organization deed is to give clear comprehension of the jobs of each accomplice, which guarantees smooth running of the activities of the firm.
Registration of Partnership Deed:
Every one of the right and responsibility of every part are recorded in an document known as a Partnership Deed. This deed can be oral or composed; be that as it may, an oral understanding is of no utilization when the firm needs to manage charge.
- The name of the firm.
- Name and addresses of the partners.
- Nature of the business.
- The term or duration of the partnership.
- The amount of capital to be contributed by each partner.
- The drawings that can be made by each partner.
- The interest to be allowed on capital and charged on drawings.
- Rights of partners.
- Duties of partners.
- Remuneration to partners.
- The method used for calculating goodwill.
- Profit and loss sharing ratio
Importance of partnership deed
- It helps to secure an individual’s liabilities and rights as it is a legal document outlined by law.
- It helps settle any quarrels that may take place in the future.
- The terms and conditions of the partnership are laid out in the deed for future references.
- It helps in identifying the roles of the members hence permitting proper functioning.
- It can be dissolved and edited as per the wishes of all parties after mutually agreeing on it.
Document required for partnership deed
- Pan card of firm
- GST Number
- Current bank account
- Identity proof of partner
- E-stamp paper of the prescribed amount
- Registration fee
- Aadhar numbers of all the partners
- Two Passport-sized photos of each business partner
Steps Involved in the Drafting of a Partnership Deed
- Draft a Partnership Agreement: All the partners need to mutually draft a Partnership Agreement with all the pertinent details of the partners and firm.
- Print on the E-stamp Paper: Get the deed printed on the Non-Judicial Stamp Paper of value Rs 100/- or more.
- Sign the Partnership Deed: All the partners need to sign the mandatorily sign the deed. It will ensure that everyone accepts stipulations provided in the deed.
- Attestation or Registration of Deed: Lastly, the partners can either get the deed Attested by the Notary Officer or Registered by the Registrar of Firms (ROF).