What do you mean by partnership deed state its main contents?

Before I state any two contents of the partnership deed, let me explain what is partnership and a partnership deed. A partnership is a special form of business in which partners work together to achieve common goals. The document which contains the respective obligations and rights of the members of a partnership is known as a partnership deed. It should be signed by all the partners and stamped as per the Indian Stamp Act.

I suggest you file a copy of the deed with the Registrar of Firms at the time of registration. It is recommended as without registration, no partner can enforce the obligations right laid down in the partnership deed through the court of law. Now, let me state the contents of partnership deed:

Even though there is not any particular format set for drafting a partnership deed, a deed usually contains the following clauses:

• Firm’s name

• Name and details of every partner

• Date of commencement of partnership

• Duration of the existence of the firm

• Contribution of capital of every partner

• Loss/Profit sharing ratio

• Interest on capital payable to partners

• Salary payable to partners, if any

• Policy related to partner’s drawings

• The procedure regarding the retirement or admission of a partner

• The method used for the calculation of the goodwill

• Preparation of firm’s accounts

• Rules to be followed in case of a death of a partner

• Procedure to be followed in case of a dispute

I think these answers might be helpful to you:

I hope now you know what do you mean by partnership deed state its main contents.