Partnership Firm Deed Format

Comprehensive partnership deed draft compliant with the Indian Partnership Act 1932, specifying capital contribution, profit sharing, bank operation, and partner exit.

Statutory Governing Law

Indian Partnership Act 1932 & Indian Stamp Act 1899.

Stamp Duty & Registration Rule

Executed on state Non-Judicial stamp paper (typically ₹500 to ₹5,000 depending on capital and state rules). Registration with Registrar of Firms (ROF) is strongly advised.

Standard Format Preview & Editor(Replace bracketed text like [NAME] with actual facts)

DEED OF PARTNERSHIP

This Deed of Partnership is made and executed on this [DAY] day of [MONTH], 20[YEAR], at [CITY, STATE]:

BY AND BETWEEN:
1. [PARTNER_1_NAME], Son/Daughter of [FATHER_NAME], residing at [ADDRESS] (hereinafter called the "FIRST PARTNER");
AND
2. [PARTNER_2_NAME], Son/Daughter of [FATHER_NAME], residing at [ADDRESS] (hereinafter called the "SECOND PARTNER").

WHEREAS the parties hereto have mutually agreed to start a partnership business under the Indian Partnership Act 1932.

NOW THIS DEED WITNESSETH AS FOLLOWS:
1. FIRM NAME: The partnership business shall be carried on under the firm name of M/s [FIRM_NAME].
2. PLACE OF BUSINESS: The principal place of business shall be at [PRINCIPAL_OFFICE_ADDRESS].
3. CAPITAL & PROFIT RATIO: The initial capital shall be contributed equally / as agreed. Profits and losses shall be shared between Partner 1 and Partner 2 in the ratio of [RATIO, e.g. 50:50].
4. REMUNERATION: Working partners shall be entitled to monthly remuneration as permitted under Section 40(b) of the Income Tax Act 1961.
5. BANKING: The firm’s bank account shall be operated jointly by both partners.

PARTNER 1: ___________________________
PARTNER 2: ___________________________
WITNESSES:
1. ___________________________
2. ___________________________

💡 Tip: Paste into Microsoft Word or Google Docs to format into paragraphs and print on legal paper.Get advocate stamped version

Essential Clauses in this Standard Draft

Firm Name, Place of Business & Business Scope

Capital Contributions & Interest on Capital (up to 12%)

Profit and Loss Sharing Ratio

Bank Account Operation (Joint vs Individual)

Retirement, Expulsion & Dissolution Procedure

Advocate Review & Official E-Stamp

Need this customized & executed on government stamp paper?

Standard formats must be customized for high-value transactions. Get this document reviewed by an enrolled advocate, drafted on authentic state E-Stamp paper, and delivered to your doorstep.

Order Custom Drafting

Frequently Asked Questions about Partnership Firm Deed Format

Is registration of a partnership deed compulsory in India?

Registration with the Registrar of Firms (ROF) is technically optional under the Indian Partnership Act 1932, but an unregistered firm cannot file a lawsuit against third parties in court under Section 69 of the Act. Registration is strongly recommended.