A partnership deed is a written document containing the terms & conditions, rules & regulations, and rights & duties. It is not necessary to have a deed but it is advisable to have one. It is also known as articles of partnership.
Contents Of Partnership Deed
- Name & address of the firm.
- Name & address of partners.
- Capital Contribution by each partner.
- The Profit-sharing ratio of partners.
- rights & duties of partners.
- Amount of salary/commission payable to partners.
- Nature of business proposed to be carried on by the firm.
- Rate of interest on capital.
- The extent to which partners are to be taken.
- Amount of withdrawals to be allowed to each partner.
- The power & duties among partners.
- Evaluation of goodwill at the time of admission & retirement of a partner.
- Procedures for dissolution.
- Maintain account & auditing.
- Arbitration clause for settlement of disputes among the partners.
- Management & voting requirements.
- Duration of partnership.
- Interest on loan.
- Valuation of assets.
