A partnership deed is the official agreement that two people come together, regardless of whether they are signing for profit or loss. This document ensures both parties agree on what will happen in terms if norms and can make any necessary changes with an easy to understand format provided by law.
A partnership deed is a legal document that summarizes the possible business options for two or more people who want to start their own company.
- The partnership agreement is a contract between the partners that regulates their rights, duties and liabilities.
- This way, it will be easy to avoid any misunderstandings and ensure that the terms of each partnership match up.
- In the event of any disputes amongst partners, it will be easy to resolve as they have a signed partnership agreement that can easily refers back.
- Helpful when the partners are confused about how to share the profits and losses.
- Displays each individual partner’s role
- The partnership deed will also contain the clauses that clearly outline what should be the remuneration paid.
- Also, registration of a partnership will make the firm eligible for obtaining PAN and applying for bank loans. So it’s really worth registering as soon as possible!
- With the help, you get your GST registration or IE Code in a flash!
All partners in a partnership are required to have their signature on an original document that has been stamped with the appropriate Non-Judicial stamp. The value for this type of note is 100 rupees or more, depending upon how valuable properties held by each individual partner may be; once all signatures have been obtained and documented properly (witnessed), one copy will remain at home while another will leave as collateral until such time when they rent out space within his/her establishment–this ensures both parties’ accountability since only one person can possess duplicate copies before being destroyed after six months if no activity occurs between them!