Sample Partnership Deed , example for 4 partners

Sample Partnership Deed , example for 4 partners

📜 DRAFT PARTNERSHIP DEED

THIS DEED OF PARTNERSHIP is made and executed on this [Date] day of [Month, Year], at [City, State], by and between:

  1. Mr. [Full Name 1], aged [Age], residing at [Address] — hereinafter referred to as “Partner 1”

  2. Mr. [Full Name 2], aged [Age], residing at [Address] — hereinafter referred to as “Partner 2”

  3. Ms. [Full Name 3], aged [Age], residing at [Address] — hereinafter referred to as “Partner 3”

  4. Mr. [Full Name 4], aged [Age], residing at [Address] — hereinafter referred to as “Partner 4”

(All the above collectively referred to as “the Partners” and individually as “a Partner.”)

1. NAME AND STYLE OF THE FIRM

The partners hereby mutually agree to carry on the business in partnership under the name and style of
“[Firm Name]” (hereinafter referred to as “the Firm”).

2. PLACE OF BUSINESS

The principal place of business shall be situated at [Full Address], or at such other place(s) as may be mutually agreed upon by all the partners.

3. NATURE OF BUSINESS

The business of the Firm shall be that of [describe nature of business, e.g., trading, manufacturing, consultancy, etc.], and any other business as may be decided mutually by the partners from time to time.

4. DATE OF COMMENCEMENT

The partnership shall be deemed to have commenced from [Date], and shall continue until dissolved as per this deed or by law.

5. CAPITAL CONTRIBUTION

Each partner shall contribute capital as under:

Partner Capital Contribution (₹)
Partner 1 [Amount]
Partner 2 [Amount]
Partner 3 [Amount]
Partner 4 [Amount]

Additional capital, if required, shall be contributed in such proportion and manner as may be mutually agreed upon by the partners.

6. PROFIT AND LOSS SHARING RATIO

The net profits and losses of the Firm shall be divided among the partners in the following ratio:

Partner Profit / Loss Share (%)
Partner 1 [e.g., 25%]
Partner 2 [e.g., 25%]
Partner 3 [e.g., 25%]
Partner 4 [e.g., 25%]

7. BANK ACCOUNT

The Firm shall open and operate a bank account in the name of the Firm with any scheduled bank. The account shall be operated jointly by any two partners, as may be decided by mutual consent.

8. ACCOUNTING AND AUDIT

  • Proper books of account shall be maintained at the Firm’s place of business.

  • The accounting year shall be from 1st April to 31st March.

  • A Profit & Loss Account and Balance Sheet shall be prepared annually, and profits distributed accordingly.

  • The accounts may be audited if required under the Income Tax Act, 1961 or as mutually agreed.

9. REMUNERATION AND INTEREST

As permitted under Section 40(b) of the Income Tax Act, 1961:

  • Each working partner shall be entitled to remuneration as mutually decided, subject to the maximum allowable limit under the Income Tax Act.

  • Interest on capital, if any, shall be allowed at a rate not exceeding 12% per annum.

  • Such remuneration and interest shall be deductible expenses for tax computation purposes.

10. DUTIES AND POWERS OF PARTNERS

  • All partners shall diligently carry on the business to the greatest common advantage.

  • No partner shall, without consent of others, engage in any competing business.

  • Each partner has authority to act on behalf of the Firm in the ordinary course of business.

11. ADMISSION, RETIREMENT, OR DEATH OF A PARTNER

  • A new partner may be admitted with the consent of all existing partners.

  • Any partner may retire by giving 30 days’ written notice.

  • On the death of a partner, the Firm may be reconstituted with the remaining partners, and the legal heirs of the deceased partner shall be entitled to settlement of his/her dues.

12. DISSOLUTION

The Firm may be dissolved:

  • By mutual consent of all partners; or

  • In accordance with the provisions of the Indian Partnership Act, 1932.
    Upon dissolution, the accounts shall be settled and assets distributed as per law.

13. ARBITRATION

Any dispute or difference arising among the partners shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, and the decision of the arbitrator shall be final and binding on all partners.

14. REGISTRATION

The partners may register this partnership under Section 58 of the Indian Partnership Act, 1932, with the Registrar of Firms having jurisdiction over the place of business.

15. INCOME TAX & OTHER LAWS

  • The Firm shall obtain a PAN and GST registration (if applicable).

  • The Firm shall file its Income Tax Return (ITR–5) annually.

  • TDS, GST, and other statutory compliances shall be duly observed.

16. GENERAL CLAUSE

Matters not covered by this deed shall be governed by the provisions of the Indian Partnership Act, 1932 and applicable tax laws in India.

IN WITNESS WHEREOF, the partners hereto have set their hands to this deed on the day, month, and year first above written.

Signatures of Partners

Partner Signature
Partner 1 __________________
Partner 2 __________________
Partner 3 __________________
Partner 4 __________________

Witnesses

  1. Name: ___________________  Address: ___________________  Signature: ___________________

  2. Name: ___________________  Address: ___________________  Signature: ___________________

✅ Stamp Duty & Registration Notes (Important):

  • Execute the deed on non-judicial stamp paper of appropriate value (varies by state).

  • Get it notarized and optionally registered with the Registrar of Firms for legal enforceability and to claim benefits under tax law (e.g., assessment as a partnership firm).

Would you like me to customize this deed for a specific business type (e.g., trading firm, consultancy, or manufacturing) and include exact tax clauses (like remuneration computation as per Section 40(b))? That would make it immediately ready for use.

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