What is Partnership Deed? Meaning, Format, Content, and Documents Required
What is Partnership Deed? Many people do not know about it, so even if you do not know What is Partnership Deed? So in this post, you will get answers to all your questions. Today on smartime we are discussing Partnership Deed Format.
first, you have to know what is a partnership then you will get what is partnership deed is. A partnership is a firm where there is an agreement of two or more characters coming together to carry on a business with a view to sharing the profit or losses of a firm.
WHAT IS PARTNERSHIP DEED?
Partnership Deed means agreement. The legal document including the partnership agreement between partners is known as the partnership Deed.
Terms and Conditions are included in the partnership Deed which is agreed upon by partners. a written agreement is called a Deed. The partnership Act doesn't make it necessary to have a written agreement.
However, in the case of conflict among the partners, it is always in the most reliable way to have a written agreement properly signed by partners. and filed under the Act
partnership contain deed includes the rules, regulation, terms, and conditions. framed for the internal management of the business. It is also an article on partnership.
CONTENT TO BE INCLUDED IN PARTNERSHIP DEED
- Name and address of all partners and duration of the partnership.
- Name and address of the business.
- Funds contribution of all the partners.
- The rate at which profit and losses are to be shared.
- Liabilities, Duties, and rights of the partners.
- Terms linked to admission, retirement, death, etc.
- Rate of interest on a loan, capital, drawing, etc.
- Salaries, payment, etc if payable to any partners.
- Settlement of account at the end of the firm.
- Way of settlement of conflicts among the partners.
- Any other matter relating to the conduct of business.
IMPORTANCE OF PARTNERSHIP DEED
Provision of the Indian Partnership Act 1932
- Signed Original copy of Partnership Deed by every partner
- Form No. 1 (For registration under Partnership Act)
- Affidavit that declares the interest of an individual of becoming a partner
- Property’s rental or lease agreement
Absence of a Partnership Deed
- The partners will receive profits and losses equally.
- Partners will not receive a salary.
- capital will not be payable.
- Drawings will not be chargeable with interest.
- Partners will get 6% p.a. interest on loans to the firm if they jointly agree.