Partnership Deed Format — Download Free Sample (India 2026)

PARTNERSHIP DEED

This Deed of Partnership is made and executed on this [DATE] at [CITY], [STATE], by and between:

1. [PARTNER 1 NAME], son/daughter of [FATHER'S NAME], aged about [AGE] years, resident of [PARTNER 1 ADDRESS] (hereinafter referred to as the "FIRST PARTNER");

2. [PARTNER 2 NAME], son/daughter of [FATHER'S NAME], aged about [AGE] years, resident of [PARTNER 2 ADDRESS] (hereinafter referred to as the "SECOND PARTNER");

(individually a "Partner" and collectively the "Partners").

WHEREAS the Partners have agreed to carry on business in partnership under the Indian Partnership Act, 1932, on the terms and conditions recorded below.

NOW THIS DEED WITNESSETH AS FOLLOWS:

1. NAME AND STYLE OF THE FIRM

The partnership business shall be carried on under the name and style of "[FIRM NAME]" (the "Firm").

2. PRINCIPAL PLACE OF BUSINESS

The principal place of business of the Firm shall be at [FIRM ADDRESS], and such other places as the Partners may mutually decide in writing.

3. NATURE OF BUSINESS

The Firm shall carry on the business of [NATURE OF BUSINESS], and any other lawful business as may be mutually agreed by the Partners in writing.

4. COMMENCEMENT AND DURATION

The partnership shall be deemed to have commenced from [COMMENCEMENT DATE] and shall continue as a partnership at will until dissolved in accordance with this Deed or the Indian Partnership Act, 1932.

5. CAPITAL CONTRIBUTION

The initial capital of the Firm shall be ₹[TOTAL CAPITAL] (Rupees [AMOUNT IN WORDS] only), contributed as follows:

(a) First Partner — ₹[AMOUNT];

(b) Second Partner — ₹[AMOUNT].

Further capital, if required, shall be contributed in the profit-sharing ratio or as mutually agreed in writing.

6. PROFIT AND LOSS SHARING

The net profits and losses of the Firm, after providing for interest on capital and partners' remuneration, shall be shared between the Partners in the ratio [RATIO, e.g. 50:50].

7. INTEREST ON CAPITAL

Interest at the rate of [RATE]% per annum (not exceeding 12% per annum as permitted under Section 40(b) of the Income-tax Act, 1961) shall be payable on the balance standing to the credit of each Partner's capital account.

8. REMUNERATION TO PARTNERS

The working Partners shall be entitled to monthly remuneration of ₹[AMOUNT] each, subject to the limits prescribed under Section 40(b) of the Income-tax Act, 1961. Such remuneration shall be treated as a charge on the profits of the Firm.

9. BANK ACCOUNT AND OPERATIONS

The Firm shall open and maintain a current account in the name of the Firm with [BANK NAME]. The account shall be operated [jointly by all Partners / severally by any Partner], as mutually agreed.

10. BOOKS OF ACCOUNT

Proper books of account shall be maintained at the principal place of business and shall be open to inspection by every Partner. Accounts shall be closed on 31st March each year and the profit and loss statement signed by all Partners.

11. DUTIES AND POWERS OF PARTNERS

Each Partner shall devote due attention to the business of the Firm, act in good faith, and shall not, without the written consent of the other Partners:

(a) Borrow money or give any guarantee on behalf of the Firm beyond ₹[LIMIT];

(b) Sell, mortgage or charge any asset of the Firm;

(c) Compromise or abandon any claim due to the Firm;