Partnership Deed

PARTNERSHIP DEED This DEED OF PARTNERSHIP is executed on [execution_date] AMONG [partner_details] (hereinafter individually referred to as "a Partner" and collectively as "the Partners"). WHEREAS the Partners have agreed to carry on business in partnership on the terms and conditions recorded below, and consider it desirable to reduce those terms to writing. NOW THIS DEED WITNESSETH AS FOLLOWS: 1. NAME AND PLACE OF BUSINESS 1.1 The partnership shall carry on business under the name and style of "[firm_name]" (hereinafter "the Firm"). 1.2 The principal place of business of the Firm shall be at [firm_address], and at such other places as the Partners may mutually agree in writing. 2. NATURE OF BUSINESS The Firm shall carry on the business of [business_nature], and any other business that the Partners may unanimously agree to undertake. 3. COMMENCEMENT AND DURATION 3.1 The partnership shall be deemed to have commenced on [commencement_date]. 3.2 The partnership shall be a PARTNERSHIP AT WILL, and shall continue until dissolved in accordance with this Deed or by operation of law. 4. CAPITAL 4.1 The initial capital of the Firm shall be contributed as follows: [capital_contribution] 4.2 Further capital, if required, shall be contributed by the Partners in the profit-sharing ratio, or as otherwise mutually agreed in writing. 4.3 Interest at the rate of [interest_on_capital]% per annum shall be payable on the capital standing to the credit of each Partner, subject to the limits prescribed under the Income-tax Act, 1961. 5. PROFITS AND LOSSES 5.1 The net profits and losses of the Firm shall be shared among the Partners in the ratio of [profit_sharing_ratio]. 5.2 Losses, including losses of capital, shall be borne in the same ratio. 6. REMUNERATION TO PARTNERS [remuneration] Such remuneration shall be subject to the limits prescribed under Section 40(b) of the Income-tax Act, 1961. 7. MANAGEMENT AND DUTIES 7.1 The Partners shall be responsible for the management of the Firm as follows: [management_duties] 7.2 Every Partner shall devote due attention and diligence to the business of the Firm, and shall be just and faithful to the other Partners. 7.3 No Partner shall, without the written consent of the other Partners: (a) lend money or give credit belonging to the Firm to any person the other Partners have forbidden; (b) stand surety or give any guarantee on behalf of the Firm; (c) engage in any competing business; (d) mortgage, charge or assign that Partner's share in the Firm; (e) introduce a new partner; or (f) enter into any transaction outside the ordinary course of the Firm's business. 8. BANK ACCOUNT The Firm shall maintain a bank account in its name, which shall be operated as follows: [bank_operation]. 9. ACCOUNTS 9.1 The Firm shall maintain proper books of account at its principal place of business, and every Partner shall have the right to inspect and take copies of them. 9.2 The accounts shall be closed and the profit or loss determined at the end of each financial year, and a balance sheet and profit and loss account shall be prepared and signed by all Partners. 10. RETIREMENT, ADMISSION AND DEATH 10.1 A Partner may retire by giving not less than three months' written notice to the other Partners. 10.2 A new partner may be admitted only with the unanimous written consent of all existing Partners. 10.3 On the death of a Partner, the Firm shall not automatically dissolve if the surviving Partners elect to continue the business; the amount standing to the credit of the deceased Partner shall be settled with that Partner's legal heirs. 11. DISSOLUTION 11.1 The Firm may be dissolved by mutual agreement of all Partners, or as otherwise provided under the Indian Partnership Act, 1932. 11.2 On dissolution, the assets of the Firm shall be applied first in payment of the Firm's debts and liabilities to third parties, then in repayment of advances made by Partners, then in repayment of capital, and the surplus, if any, shall be divided in the profit-sharing ratio. 12. DISPUTE RESOLUTION Any dispute among the Partners arising out of or relating to this Deed shall be referred to arbitration by a sole arbitrator appointed by mutual consent, in accordance with the Arbitration and Conciliation Act, 1996. The seat of arbitration shall be the principal place of business of the Firm. 13. REGISTRATION OF THE FIRM The Partners record that registration of a partnership firm under Section 58 of the Indian Partnership Act, 1932 is optional, but that under Section 69 of that Act an unregistered firm cannot file a suit to enforce a contractual right against a third party, nor can a partner sue the firm or co-partners. The Partners therefore intend to have the Firm registered with the Registrar of Firms. 14. STAMP DUTY This Deed shall be executed on stamp paper of the value prescribed by the State in which it is executed. Stamp duty on partnership deeds varies between States and should be confirmed locally. IN WITNESS WHEREOF the Partners have set their hands to this Deed on the day, month and year first above written. PARTNERS [partner_details] WITNESSES 1. Name: ______________________ Signature: ______________ Address: ______________ 2. Name: ______________________ Signature: ______________ Address: ______________