What is Partnership Deed?

Aspects of Partnership Deed

When any partnership business starts, many aspects need to be discussed to work smoothly without any estrangement. For Example, Capital to be invested by each partner, share of profits given to each partner, salary, commission, percentage of interest on capital, interest on drawings, etc. A written agreement is made before starting any partnership firm in which details about all the aspects of the partnership are written to avoid future problems or conflicts. Such a written agreement is called Partnership Deed. It is not mandatory to make a written Partnership Deed, it could be oral as well, but it is advisable to have a written agreement. Anything in a written form has greater credibility as compared to orally said.

Partnership Deed : Aspects and Registration

A group of individuals entering into a formal relationship, having a common goal and willing to invest their capital, time, name, and idea altogether to start a business for profit-making is said to be a partnership.

The definition of Partnership, According to the Indian Partnership Act 1932 is ” The relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.”

When a group of individuals works together, then there could be a possibility of conflict and disputes. To grow a Partnership firm, a good relationship is essential to avoid disputes between the partners “The Indian Partnership Act, 1932” came into force. This act covers all the rules and regulations regarding a partnership firm.

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