Most essential contents of a Partnership Agreement or Deed registered in India

The partnership deed is indispensible for partnership business. It is a document containing all the matters according to which mutual rights, duties and liabilities of the partners in the conduct and management of the affairs of the firm are determined.

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It forms the basis of partnership agreement. Simply stated, a partnership deed is a written agreement among the partners stating the terms and conditions of partnership.

The deed should be duly stamped in accordance with the Indian Stamps Act. Each partner should possess a copy of the partnership deed.


Contents of Partnership Deed: A Partnership deed usually contains the following items.

  • The name of the firm
  • The names and addresses of all the partners
  • The nature of the business to be carried by the firm
  • The amount of capital to be contributed by each partner.
  • The duration of partnership, if any
  • The amount which can be withdrawn by each partner.
  • The ratio of distribution of profits and losses among the partners.
  • The rate of interest on capital and drawing made by the partners.
  • The amount of compensation or salary payable to any partner for his services rendered to the firm.
  • The mutual rights and duties of partners.
  • Maintenance and audit of books of accounts.
  • The loans and advances made by the partners to the firm and the rate of interest after dissolution.
  • The procedure of dissolution and mode of settlement of accounts among the partners after dissolution.
  • The methods of revaluation of assets and liabilities on admission, retirement and death of a partner.
  • The procedure to the followed on expulsion of a partner in case of fraud and breach of duty.
  • The arbitration clause of settlement of disputes among the partners.
  • Arrangement in case of partner becomes insolvent.
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