What do you understand by partnership deed?

Hi,

I hope you are doing good.

A partnership deed is an agreement between the partners of a firm that outlines the terms and conditions of partnership among the partners. A partnership firm is one of the popular types of organizations for starting a new business.

The smooth and successful running of a partnership firm requires a clear understanding among its partners regarding the various policies governing their partnership. The partnership deed serves this purpose. It specifies the various terms such as profit/loss sharing, salary, interest on capital, drawings, admission of a new partner, etc. in order to bring clarity to the partners.

Though issuing a partnership deed is not mandatory, but it’s always better to enter into a partnership deed to avoid any possible disputes and litigation among the partners. The agreement can be made between two or more partners. It must be stamped and signed by all the partners.

I hope this information will be helpful for you.

If you have any query please don't hesitate to drop message in the comment section below.

All the best.

Hello,

I hope you are doing fine, A partnership deed is a written document that contains terms and conditions agreed between the partners who enter together in a partnership venture for profit making . Having a partnership deed ensures that potential disputes are avoided by clearly defining the terms of mutual agreement.

These are the main things to be noticed in Partnership Deed

The name of the firm.

Name and details of all partners.

Date of commencement of business.

Duration of the firm's existence.

Capital contributed by each partner.

Profit/loss sharing ratio.

Interest on capital payable to partners.

The extent of borrowings each partner can draw.

I hope you find this information helpful. I wish you all the best for your future.

Good Luck

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