General Partnership Deed

General Partnership Deed (Traditional Business)

Partnership Deed

THIS DEED OF PARTNERSHIP is made on this _____ day of _____, 20, at _________.

BETWEEN:

1. Mr./Ms. ____________, aged _____ years, residing at _________________ (hereinafter referred to as “First Party/Partner”)

AND

2. Mr./Ms. ____________, aged _____ years, residing at _________________ (hereinafter                 referred to as “Second Party/Partner”) (Collectively referred to as “Partners”)

WHEREAS the parties hereto have agreed to enter into partnership for carrying on the business of _____________ under the firm name “________________” on the terms and conditions hereinafter mentioned.

NOW THIS DEED WITNESSETH AS FOLLOWS:

1. Name and Nature of Business

The partnership firm shall be known as “_______________”. The business shall consist of  _______________.

2. Principal Place of Business

The principal place of business shall be at _______________. Additional branches may be opened with mutual consent.

3. Commencement and Duration

The partnership shall commence from ________ and shall continue until terminated as per this deed.

4. Capital Contribution

• First Partner: Rs. _________ (Rupees _____________)
• Second Partner: Rs. _________ (Rupees _____________)
• Total Capital: Rs. _________ (Rupees _____________)

Capital shall be deposited in the partnership bank account within _____ days.

5. Profit and Loss Sharing Ratio

Profits and losses shall be shared in the following ratio:

• First Partner: _____%
• Second Partner: _____%

6. Drawings and Salary

• Each partner may draw Rs. _______ per month as salary.
• Additional drawings require the consent of all partners.
• Interest on excess drawings shall be charged at ____% per annum.

7. Interest on Capital

Interest on capital shall be paid at ____% per annum.

8. Bank Account and Operations

• The firm shall maintain account(s) with _____________ Bank.
• Cheques above Rs. _______ require signatures of both partners.
• Cheques below Rs. _______ may be signed by any partner.

9. Rights and Duties of Partners

Each partner shall:

• Devote adequate time and attention to the business
• Act in good faith and with utmost honesty
• Not engage in competing business without written consent
• Maintain proper books of accounts

10. Decision Making

• Routine decisions: Any partner may decide
• Major decisions: Unanimous consent required
• Major decisions include: admission of new partner, purchase/sale of assets above Rs. _______, borrowing above Rs. _______

11. Books of Accounts

• Proper books shall be maintained at the principal place of business.
• All partners have the right to inspect and take copies.
• Accounts shall be closed on ________ each year.
• Accounts shall be audited by a qualified Chartered Accountant.

12. Retirement of Partner

Any partner may retire by giving _____ months’ written notice. Settlement shall be made as per applicable law.

13. Death or Insolvency

Upon the death or insolvency of a partner, the firm may be dissolved or continued with legal heirs/remaining partners as mutually agreed.

14. Admission of New Partner

New partner(s) may be admitted only with the unanimous written consent of all existing partners.

15. Dissolution

The firm may be dissolved:

• By mutual consent of all partners
• By notice as per clause 12
• By operation of law
• Upon death/insolvency (unless continued as per clause 13)

16. Arbitration

All disputes shall be referred to arbitration under the Arbitration and Conciliation Act, 1996. The arbitrator shall be appointed by mutual consent.

17. Notices

All notices shall be sent to the addresses mentioned above or as updated in writing.

18. Governing Law

This deed shall be governed by the laws of India and subject to the jurisdiction of ________courts.

IN WITNESS WHEREOF, the parties have signed this deed on the day, month and year first above written.

SIGNED AND DELIVERED BY:

First Partner Signature: ______________ Name: __________________ Date: ___________________

SIGNED AND DELIVERED BY:

Second Partner Signature: ______________ Name: __________________ Date: ___________________

WITNESSES:

1. Signature: ______________ Name: __________________ Address: ________________
2. Signature: ______________ Name: __________________ Address: ________________