Sample Partnership Deed

 

 

DRAFT PARTNERSHIP DEED

THIS Partn THIS Partners ership hip Deed Deed ma made de at ..... ....... ..... ..... .. this. this.... ...... ...... ...... ...... ...... ..... Day Day of ...... ......... ...... ..... ..... ...... ..... .. 20............ BETWEEN 1. FIRST FIRST PRT! RT!" and 2. SE#$ SE#$ND ND P PRT! RT!"

%B$TH THE FIRST & SE#$ND PRT! SH'' BE #$''E#TI(E'! REFERRED T$ S PRTNERS) WHERES the First Party is *****************  WHERES the Se+ond Party is ***************  N$W The First & Se+ond Party are interested in formin, a Partnership -nder the and that they intends to rite done the terms and +onditions of the said formation and IT IS HEREB! /REED B! ND BETWEEN THE PRTIES HERET$ S F$''$WS 1.  Partnership Partnership sha e +arried on in the name name and s stye tye of ***** ***** sha sha e formed 2. The Partnership Partnership sha sha hae its re,istered re,istered offi+e offi+e at ******** ************** ******* * India and3or and3or at s-+h other pa+e or pa+es" as sha e a,reed to y the ma4ority of the partners from time to time. 5. The #apita #apita of the Partnersh Partnership ip sha e ****** ******* * hi+h sha sha e +ontri+ontri-ted ted y the partners in the fooin, proportions.

Pa,e 1 of 5

 

 

First Party6 Rs ******** 

 

Se+ond Party6 Rs *********  The f-rther #apita if any re7-ired y the Partnership sha e ro-,ht y the partners in their profit sharin, ratio.

8.  the Partne Partners rs of the Partner Partnership ship are entit entited ed to sha share re profit profit and osses osses in the ratio ratio of their respe+tie +apita in the Partnership. 9. The -siness -siness of the the Partnership Partnership sha e e en,a,ed en,a,ed in the -siness -siness of ********** ************. **. Admission of New Partner  :. No Person may e introd-+ed introd-+ed as a ne partner itho-t itho-t the +onsent of a the e;istin, partners. S-+h in+omin, partner sha ,ie his prior +onsent to a+t as Partner of the Partnership. . The Profit Profit sharin sharin, , ratio ratio of the in+omi in+omin, n, part partne nerr i i e in propo proporti rtion on to his +apita +apita toards Partnership. Rights of Partner  ?.  the partners partners hereto hereto sha sha hae the ri,hts" ri,hts" tite tite and interest interest in a the assets assets and properties in the said Partnership in the proportion of their +apita. 10. Eery partner has a ri,ht to hae a++ess to and to inspe inspe+t +t and +opy any oo@s of the Partnership. 11 11.. Ea+h of the parties parties hereto hereto sha e entited entited to +arry on their on" on" separate separate and independent -siness as hitherto they mi,ht e doin, or they may hereafter do as they deem fit and proper and other partners and the Partnership sha hae no o4e+tion thereto proided that the said partner has intimated the said fa+t to the Partnership efore the start of the independent -siness and moreoer he sha not -ses the name of the Partnership to +arry on the said -siness. 12. That notithst notithstand andin, in, anythin anythin, , +ontain +ontained ed in the Indian Partne Partnershi rship p + +tt it is herey herey m-t-ay a,reed to y and eteen the parties that in +ase of death of any one or  more partners" the firm sha not e dissoed -t sha +ontin-e to e +arried on y and eteen the s-riin, partners and e,a heirs and3or representaties of the de+eased partner" as a +ontin-in, +on+ern" on the same terms and +onditions as in+orporated in this Deed or on s-+h terms and +onditions as may e a,reed to y and eteen them from time to time. It is herey f-rther +arified that it sha e deemed as +han,e in +onstit-tion and not s-++ession. Pa,e 2 of 5

 

15. 15.  ond onds" s" is" is" notes notes"" is is of e;+ha e;+han, n,e" e" h-nd h-ndie ies s or promis promissor sory y no note tes s or other  other  se+-ritie se+rities s ,ien ,ien on ehaf ehaf of the partnership partnership %e;+ept %e;+ept +he7-e +he7-es) s) sha sha e si,ned" si,ned" endorsed" a++epted or e;e+-ted 4ointy y a the Partners and any ond" i" note" i of e;+han,e" et+. to hi+h any partner may e a party +ontrary to this proision sha e deemed to hae een on the persona a++o-nt of s-+h partner and he sha pay and dis+har,e the same o-t of his on moneys and indemnify other partners and the firm a,ainst payment thereof and a,ainst a a+tions" pro+eedin,s" +osts" +har,es" e;penses" +aims and demands in respe+t thereof. Duties of Partners 18. That First & Se+ond Se+ond Party sha sha a+ti a+tiey ey en,a,e en,a,e in +ond-+t +ond-+tin, in, the affairs affairs of the -siness of the partnership firm. The said partners sha e or@in, partners. It is herey here y a,reed a,reed to that that in +onside +onsideratio ration n of the said parties parties @eep @eepin, in, themsees themsees a+tiey en,a,ed in the -siness of the partnership firm and or@in, as or@in, partners" sha e entited to rem-neration.

The rem-neration payae to the said or@in, partners sha e +omp-ted in the manner aid don or ded-+tion -nder se+tion 80%)%)" read ith E;panation 5 of the In+omeAta; +t" 1?:1 or any other appi+ae proision as may e in for+e in the in+omeAta; assessment of the partnership firm for the reeant a++o-ntin, year  19. Eery partner sha a++o-nt a++o-nt to the Partnership for any enefit deried deried y him itho-t the +onsent of the Partnership from any transa+tion +on+ernin, the Partnership" or  from fro m any -se y him him of the propert property y" name name or any -sine -siness ss +o +onn nne+t e+tio ion n of the Partnership. 1:. Eery partner sha indemnify indemnify the Partnership and the other other e;istin, partner for any oss +a-sed to it y his fra-d in the +ond-+t of the -siness of the Partnership. 1. In +ase any of the Partner of the Partnership Partnership desires to tran transfer sfer or assi,n his interest or shares in the Partnership he has to offer the same to the remainin, partners y ,iin, ,i in, 19 days days noti+ noti+e. e. In the the ase asen+e n+e of any +o +ommmm-ni ni+at +atio ion n y th the e remain remainin in, , partners the +on+erned partner +an transfer or assi,n his share in the mar@et. 1?. No partner sha itho-t the ritten +onsent +onsent of the other Partners "AA I.

Empoy Empoy any any mone money y" ,ood ,oods s or effe+ effe+ts ts of the the Partne Partnersh rship ip or ped ped,e ,e the the +redi +reditt thereof e;+ept in the ordinary +o-rse of -siness and -pon the a++o-nt or for  the enefit of the Partnership.

II. II.

'e 'end nd mone money y or ,ie ,ie +red +redit it on eha ehaf f of the the Partn Partner ersh ship ip or to hae hae any any de dea ain in,s ,s i ith th an any y pe pers rson ons" s" +omp +ompan any y or firm firm hom hom th the e ot othe herr pa part rtne ner  r  preio-sy in ritin, hae foridden it to tr-st or dea ith. ny oss in+-rred Pa,e 3 of 5

 

thro-,h any rea+h of proisions sha e made ,ood ith the Partnership y the partner in+-rrin, the same. III. III.

ssi,n ssi,n"" mor mort,a t,a,e ,e or +ha +har,e r,e his his or her her share share in the the Partn Partners ership hip or or any asse assett or property thereof or ma@e any other person a partner therein.

I(. I(.

#o #omp mpro romi mise se or +o +omp mpoo-nd nd or %e;+ %e;+ep eptt -p -pon on pa pay yment ment in ff- )) re ree eas ase e or  dis+har,e any det d-e to the Partnership e;+ept -pon the ritten +onsent ,ien y the other partner .

20. Ea+h partner shaAA I.

P-n+ P-n+tt-a ay y pay pay and and dis+ dis+ha har, r,e e the the se sepa para rate te de det ts s an and d en en,a ,a,e ,eme ment nt an and d indemnify inde mnify the other other partner partners s and the Partners Partnership hip assets a,ainst a,ainst the same and a pro+eedin,s" +osts" +aims and demands in respe+t thereof.

II.

Ea+h Ea+h of the the partn partners ers sha sha ,ie ,ie time time and atte attent ntio ion n as may e e re7-ir re7-ired ed for for the f-fiment of the o4e+ties of the Partnership -siness and they a sha e the or@in, partners.

Etent of !ia"i#it$ of Partnershi% 21.  Partnership is not o-nd y anythin, done y a partner in deain, ith a person ifC I.

th the e part partne nerr in fa+ fa+t has has no a-th a-thor orit ity y to a+t a+t fo forr th the e Part Partne ners rshi hip p in doin doin, , a parti+-ar a+t and

II.

the pers person on @no @nos s that that he has has no a-th a-thori ority ty or doe does s not @no @no  or eie eiee e him him to e a partner of the Partnership.

 &is'e##aneous Pro(isions 22. The partnership partnership +an e o-nded -p ith the +onsent of a the partners. 25. The Partnershi Partnership p sha sha indemnif indemnify y ea+h ea+h partner partner in respe+t respe+t of payment payments s made made and persona iaiities in+-rred y himC I.

in the the ord ordin inar ary y and and prop proper er + +on ondd-+t +t of the the -si sine ness ss of of the the Par Partn tner ersh ship ip o or  r 

II.

in or aoao-tt any anyth thin, in, ne+e ne+essa ssari riy y don done e ffor or th the e pres preser eratio ation n of of the the -sin sines ess s or property of the Partnership.

28. 28. The oo@s oo@s of a++o-n a++o-nts ts of the firm firm sha sha e @ept at th the e re re,is ,iste tered red offi+e offi+e of th the e Partnership for the referen+e of a the partners. 29. The a++o-nt a++o-ntin, in, year of the Partners Partnership hip sha sha e from 1st pri pri of the year to 51st =ar+h =a r+h of ss-se se77-en entt ye year ar.. Th The e first first a++oa++o-nt ntin, in, ye year ar sha sha e from from the date of  +ommen+ement of this Partnership ti 51st =ar+h *****. Pa,e ) of 5

 

2:. It is e;pressy a,reed that that the an@ a++o-nt of the partne partnership rship sha e operated y the Se+ond Party. 2 2>..

That That th the e part partne ners rs sha sha e enti entit ted ed to modi modify fy th the e a ao oe e te term rms s re rea ati tin, n, to rem-neration" interest" et+. payae to partners y e;e+-tin, a s-ppementary deed and s-+h deed hen e;e+-ted sha hae effe+t -ness otherise proided from the first day of a++o-ntin, a++o-ntin, period in hi+h s-+h s-ppementary s-ppementary deed is e;e+-ted e;e+-ted and the same sha form part of this deed of Partnership.

2?.  disp-tes eteen the partners or eteen the Partne Partnerr and the partnership arisin, o-t of the Partnership Deed hi+h +annot e resoed in terms of this deed sha e referred for aritration as per the proisions of the ritration and #on+iiation +t" 1??: %2: of 1??:).  IN WITNESS WHERE$F the parties hae p-t their respe+tie hands the day and year  first hereinaoe ritten Si,ned and deiered y the For and on ehaf of

%Name of First Party)

%Name of Se+ond Party)

Witness6 a) Name6** Name6***** ****** ******* ******** ******* ****** ****** ******* ******* ****** ******  ***   ddress6******  ddress6* ************ ************** ************* ************* ***********  ****  Si,nat-re6************************************  ) Name6******** Name6**************** ************** ************* ************* **********  ****   ddress6******  ddress6* ************ ************** ************* ************* ***********  ****  Si,nat-re6************************************ 

Pa,e 5 of 5