Partnership Deed Format
Draft a partnership deed for a new or existing firm: fill in the firm and partner details and download an editable Word file.
What it is
A partnership deed is the written agreement between the partners of a firm under the Indian Partnership Act, 1932. It records the firm name, business, capital, profit-sharing ratio and the rights and duties of each partner. Where the deed is silent, the default rules in the Act apply; for example, under Section 13 partners share profits equally and are not entitled to remuneration.
When it is used
- Starting a partnership firm, before applying for the firm's PAN and opening its bank account.
- Registering the firm with the Registrar of Firms of the State.
- Recording agreed interest on capital and remuneration to working partners for income-tax purposes.
- Admitting or retiring a partner (a fresh or supplementary deed).
What the template covers
- Firm name, principal place of business and nature of business
- Commencement date and duration (at will or fixed term)
- Capital contribution of each partner and the profit and loss sharing ratio
- Interest on capital and remuneration to working partners
- Bank account operation, books of account and accounting year
- Powers and duties of partners; admission, retirement and death of a partner
- Dissolution, arbitration and governing law
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Firm Details
Firm Name; Principal Place of Business; Nature of Business; Effective Date; Duration
Partners
Partners (name, address, capital, profit %): Full Name, S/o, D/o or W/o, Residential Address, PAN, Capital Contribution (₹), Profit/Loss Share (%)
Banking
Bank Name (firm account); Bank operating authority
Financial Terms
Interest on Capital (% p.a.); Working partner remuneration?
Execution
Place of Execution; Stamp Paper Value (₹)
Stamp duty, registration and filing
Stamp duty on a partnership deed is charged under the Stamp Act of the State where it is executed, so the amount differs from State to State. Registration of the firm is optional, but under Section 69 of the Act an unregistered firm cannot sue a third party to enforce a right arising from a contract, and a partner cannot sue the firm or other partners on rights under the deed. Income-tax law allows the firm a deduction for interest and remuneration to partners only when the deed authorises them and only within prescribed limits, so these clauses should be worded with care.
Generate the Partnership Deed
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
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Frequently asked questions
Is registration of a partnership deed compulsory?
No. Registration of a firm with the Registrar of Firms is optional under the Indian Partnership Act, 1932. However, an unregistered firm faces restrictions under Section 69, such as not being able to sue third parties to enforce contractual rights, so many firms choose to register.
How much stamp duty is payable on a partnership deed?
Stamp duty depends on the State where the deed is executed and, in some States, on the capital contributed. Check the current rate under your State's Stamp Act or with the local Sub-Registrar before printing the deed.
Can the profit sharing ratio differ from the capital ratio?
Yes. Partners can agree any profit and loss sharing ratio in the deed, whatever their capital contributions. If the deed does not state a ratio, profits and losses are shared equally.
Can a partnership deed be changed later?
Yes. Partners can change the terms by a supplementary deed signed by all partners. A registered firm must also inform the Registrar of Firms of changes such as a new partner or a change in the firm's name or place of business.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.