Partnership deed format
A partnership deed records the agreement between partners — capital, profit sharing, duties, admission and retirement of partners and dissolution. Registration with the Registrar of Firms is optional under the Indian Partnership Act, 1932, but an unregistered firm cannot sue third parties to enforce contracts (Section 69).
Key points
- Indian Partnership Act, 1932; registration under Sections 58–59.
- An unregistered firm and its partners face the bar in Section 69 on suing third parties or each other on contracts.
- Stamp duty under the State stamp law.
The law: old and new provisions
| Subject | Law now | Before 1 July 2024 |
|---|---|---|
| Partnership | Indian Partnership Act, 1932 | — |
Which court or authority
Executed by the partners; registered with the State Registrar of Firms.
What the document should contain
- Firm name, business and place
- Capital contributions
- Profit and loss ratio
- Salaries, interest on capital and drawings
- Banking and authority to sign
- Admission, retirement, death of a partner
- Dissolution and arbitration
Documents to attach
- Identity and address proof of partners
- Proof of the business address
- Stamp paper
Procedure
- Draft and stamp the deed
- Execute before witnesses
- Register with the Registrar of Firms; apply for PAN and GST
Common mistakes
- No clause on the death or retirement of a partner
- Not registering when the firm will need to sue
Frequently asked questions
Is registration of a partnership firm compulsory?
No, but an unregistered firm cannot file suits to enforce contractual rights against third parties (Section 69), so registration is strongly advised.