Procedure to create partnership deed
The “Partnership Deed”, as stated above, must contain:
1. The amount of capital contributed by each partner
2. Profit or loss sharing ratio
3. Salary or commission payable to any partner, if any with respect to Sec 40b of Income Tax Act, 1961
4. Duration of business, if any
5. Name and address of the partners and the firm
6.Duties and powers of each partner
7. Nature and place of business; and
8. Any other terms and conditions to run the business
Registering a partnership firm.
This partnership deed must be made on stamp paper or franking also allowed as per the laws of the place of signing. The whole process of drafting the partnership deed can be done through a trusted lawyer or you can also do the same.
After preparation of the deed, it must be signed by all the partners. It must also have signatures of independent witnesses.
The deed is then submitted to the “Registrar Of Firms” along with the registration form and other supporting documents. On approval of these documents by the “Registrar Of Firms” the “Partnership Firm” is established as a legal entity and can start business under the chosen name.
Note:- Registration of partnership firm is not mandatory.