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What Is A Partnership Deed Format?

3 mn read

A partnership deed is the documented agreement between two or more partners of a firm. A partnership deed format outlines the terms and conditions of a partnership amongst these partners.

 

The smooth functioning of an organization that is owned by two or more individuals depends on the partnership deed format, which specifies various terms and conditions such as profit and loss sharing, salary, interest on capital, admitting a new partner, drawing, etc. This format ensures clarity so that there is no dispute between partners if a business fails.

 

Although it isn’t mandatory to issue a property deed, it is always better to have one to avoid any dispute in case a business fails or if a partner decides to leave to pursue other interests. The partnership deed format, if created, is required to be stamped by all partners.

 

If you run a company with two or more other stakeholders, and want to have a partnership deed, you have to ensure that the partnership deed format looks like this:

 

 

Advantages of a partnership deed

Some of the advantages of having a partnership deed include:

 

Things to remember while drafting a partnership deed

The partnership deed format is vital while writing the partnership deed. While drafting the deed, you need to remember the following things:

Partnership deed checklist

Documentation required while drafting a partnership deed

Following are the documents required in your partnership deed format :

Organisations such as Vakilsearch will help you draft the partnership deed in case you and your team are looking to start a business together.

 

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