PARTNERSHIP DEED

DATE – 30 MAY 2021

PARTNERSHIP AGREEMENT BETWEEN THREE PARTNERS

THIS DEED OF PARTNERSHIP is made at _________ (PLACE) on this

_______(Day) of ________(Month) ______(Year) between
1. Mr./Mrs. _________, Son/Daughter of ___________, Resident of
____________ (herein in after called the party 1 party).
st

2. Mr./Mrs. __________, Son/Daughter of ___________, Resident of

__________ (herein in after called the party 2 party).
nd

3. Mr./Mrs. __________, Son/Daughter of ___________, Resident of

__________ (herein in after called the party 3 party).
rd

WHEREAS The First Party hereto have proposed to commence and carry
on business in partnership form on the following terms and conditions and
have proposed to execute this Deed.

AND WHEREAS the party of the second and third part has agreed to
become a partner in the said business on the terms and conditions
mentioned hereunder which has been executed in writing to avoid any
possible dispute/disputes either at present or in future.

NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS

FOLLOWS:

1. The parties hereto agreed to join hands as a partner in the business in

the name and style M/s. _____________ and has decided to set up a
unit at ____________(place) for manufacturing/trading/Business
operations.

2. The partnership shall commence from the

___________Day/Month/Year.
3. The period of the partnership shall be _________ years from the date
hereof. The parties may extend the said period by mutual consent as
hereinafter provided. (IN CASE PARTNERSHIP IS FORMED FORM
PARTICULAR PERIOD OF TIME)

4. The Head Office of the Firm shall be situated

at___________(Address) and Factory/Branch Office at
___________(Address) or any other Place or Places as
desired/needed in future.

5. The Profits and losses of the firm shall be __________ (Ratio) divided
between the Partners and same shall be credited to their
capital/current accounts. (IF PARTNERSHIP DEED IS SILENT THEN
PROFITS AND LOSSES WILL BE DIVIDED EQUALLY AMONG
PARTNERS).

FIRST PARTY SHARE ____________ (%)

SECOND PARTY SHARE __________ (%)
THIRD PARTY SHARE __________ (%)

The Net profit will mean the gross profits earned in each year less the
expenses of the management of the business including the rent of the
premises of the firm, outgoings in respect of the salaries and wages of
the staff, commission paid to others, and all other expenses incurred in
connection with the business and allowed as deductions under the
Income Tax Act.

6. The Party of the First Part has agreed to bring into the partnership
his/her capital in the form of __________immovable/movable property
described in the Schedule hereunder written and for the purpose of
his/her capital contribution it is valued at Rupees_______________
and that amount will be credited to his/her account as a capital
contribution.

The Party of the Second Part has agreed to bring into the partnership
his/her capital in the form of __________immovable/movable property
described in the Schedule hereunder written and for the purpose of
 his/her capital contribution it is valued at Rupees_______________
and that amount will be credited to his/her account as a capital
contribution.

The Party of the Third Part has agreed to bring into the partnership
his/her capital in the form of __________immovable/movable property
described in the Schedule hereunder written and for the purpose of
his/her capital contribution it is valued at Rupees_______________
and that amount will be credited to his/her account as a capital
contribution.

7. The partners will contribute such further amounts towards the capital
of the firm, as may be required from- time to time. The amount to the
credit of each as his contribution to the capital of the firm

8. Accounting Year of Firm starts from _________ to __________.

9. At the end of each accounting year, an account of the business

carried on in that year will be made and a statement of accounts,
namely, a Balance sheet and Profit and loss account will be prepared
and signed by the partners. If necessary or required by law the
accounts will be got audited by a Chartered Accountant.

10. ____________ (PARTY NAMES) Partner/Partners will be the

Managing partner/partners. ___________ (PARTY NAMES)
Partner/Partners will be Sleeping partner/partners.

11. The Managing Partner will have the power (i) to execute any
documents on behalf of the Firm in respect of any transaction agreed
upon by the Partners, hereto (ii) to represent the Firm while dealing
with outsiders, (iii) to represent the Firm in any court matter and for that
purpose to sign and declare pleadings, affidavits and other papers, to
appoint advocates and to do all other things required to be done in that
behalf (iv) to purchase and sell articles and things in which the Firm
would be dealing for its business and (v) to do all acts and things
required for the business of the Firm except those which are required
to be done with the consent of the other partners under these presents.

12. The sleeping partner will not be bound to attend to the day-to-day
business of the Firm nor will he interfere in the day-to-day business of
 the Firm but the sleeping partner will not be entitled to any monthly
remuneration.

13. The Working Partners will be paid salary of

_____________(AMOUNT) per month for services rendered and will
be entitled to bonus ___________(AMOUNT). Any Partner is entitled
to any other remuneration as may be agreed by all Partners.

14. The Partners shall entitle Interest on Capital @

_________(percentage) per month. The partners shall be entitled
Interest on Drawings @___________ per month. (IF DEED IS SILENT
IN REGARDS TO INTEREST ON DRAWINGS, INTEREST WILL BE
CHARGED 6% P.M)

15. Partners shall be fully authorized to admit any new partner or partners
as deem fit and requires in future but with the consent of all the present
partners.

16. In case Minor is admitted to the benefits of the partnership, the capital
contributed by him, if any subject and added to the firm’s total capital
but Liability of Minor Partner will be limited up to the amount of capital
contributed by him/her.

17. The Books of accounts and all other records of the Firm will be always
kept at the office of the Firm and will be open for inspection by any of
the partners hereto at any time. Consent of all the partners shall be
required to keep books at any other place other than Head Office.

18. The Bank Account or Accounts of the firm shall be opened in the name
of the firm and same shall be operated by _____________ (partner
name).

19. The Party ________________ (Name of Partner/Partners) shall be

entitled to approach any Financial/Lending and other Institution for any
working capital or Term loan requirements if any.
20. All the working staff such as clerks, peons, accountants, cashier,
salesmen and others will be appointed by the Managing Partner with
the consent of at least ____________ (Number of partners for consent)
other partners, and their wages and salaries and other emoluments will
be fixed in the same way.

21. All the tangible and intangible assets of the firm including the property
described in the Schedule hereunder written, the goodwill, stock-in-
trade, benefit, of business licenses and permits, benefits of contracts
entered etc., will belong to the parties in proportion to their respective
shares in the profits of the firm and the property of the firm shall be
used by the parties exclusively for the business of the Firm.

22. Each of the partners hereto, subject to what is herein otherwise

provided, shall

a. Participate and attend to the business of the firm to the greatest

common advantage of the Firm.
b. Be just and faithful to each other.
c. Render true accounts and full information of all money affecting the
Firm to the other indemnify the Firm for any loss caused to it by
willful negligence or fraud in the conduct of the business.
d. Not carry on any business similar to the business of the firm or any
other business anywhere without the consent of the other partner/s.
e. Attend to the business of the Firm diligently and actively.
f. Not withdraw any amount for his own benefit or use as
remuneration or otherwise without the consent of the other, except
to the extent hereinbefore provided.
g. Be entitled to be indemnified by the Firm in respect of payment
made and liabilities incurred by him-
h. In the usual and proper course of business of the Firm, and
i. In doing any act for protecting the Firm from loss in emergency

23. Subject to what is herein otherwise provided, any party hereto shall not,
without the consent of the other –
 A. Submit any dispute with any other person to arbitration or
compromise or relinquish the claim.

B. Withdraw any suit or legal proceedings filed by the firm

C. Admit any liability of the Firm.

D. Acquire or dispose of any moveable or immovable property,

E. Except for the stock-in-trade in the ordinary course of business.

F. Enter into partnership or other business unilaterally with any other

person.

G. Assign or transfer his share or any interest of the Firm.

H. Admit any person as a partner in the Firm.

I. Borrow any amounts of money for or in the name of the Firm or

create any security or charge on the assets of the Firm
Independently
J. Enter into any contracts except contracts in the regular course of
business of the Firm.
K. Stand as a guarantor or surety for any person in the name of the
Firm or for and on behalf of the Firm.

24. No partner shall be entitled to dissolve the partnership during the said
period of ________ years. But if any party hereto desires to retire from
the Firm, he/she shall give to the others at least one month's previous
notice to that effect and on the expiration of the notice period he shall
be deemed to have retired from the partnership.
25. If any partner retires from the Firm, he/she will not be entitled to carry
on the same or similar business as that of the Firm, within an area of
two kilometres from the office of the Firm and for a period of
________years from the date of retirement and he/she shall not carry
on any business in the same name as that of the Firm.

26. If any partner retires from the partnership, an account will be made of
the assets and profits or losses of the Firm from the end of the last
accounting year till the date of retirement and his share therein will be
ascertained in _________(CASH/KIND) and the same will be paid to
him/her in _________ (LUMP SUM/ INSTALMENTS) may be agreed
upon or in the absence of agreement as the majority may decide.

27. On dissolution of the partnership an account will be made of the assets

and property or losses and the share of each partner will be
ascertained and paid out of the assets of the firm in species or by the
sale of the assets or any part thereof provided that, subject to the
payment of liabilities and the shares of the partners, the property
described in the schedule hereunder written, if not sold earlier, or
required to be sold will be retained to the Party of the First in lieu of his
share.

28. If any dispute or difference shall arise between the parties hereto
touching the business of the firm or interpretation of any provision
hereof or otherwise, howsoever relating to the firm and business, the
same shall be referred to __________________arbitration. (NAME OF
ARBITRATOR/ PLACE OF ARBITRATION).

29. The parties, shall, as early as possible but in any event within the
prescribed period get the Firm registered under the Partnership Act,
1932 and registered under or notified to the I. T. Office as required by
the Income Tax Act, 1961.

30. This deed is executed in four copies and one copy will remain with
each of the parties hereto.
IN WITNESS WHEREOF the parties have put their respective hands the
day and year first hereinabove written.

DATE
PLACE

1 Party
st

Signed and delivered by the within-named Mr./Mrs._____________

(PARTY NAME) in the presence of _____________(WITNESS)

2 Party
nd

Signed and delivered by the within-named Mr./Mrs._____________

(PARTY NAME) in the presence of _____________(WITNESS)

3 Party
rd

Signed and delivered by the within-named Mr./Mrs._____________

(PARTY NAME) in the presence of _____________(WITNESS)

1.