Partnership Deed — Draft Online with Verified Advocates
Get your partnership deed drafted by experienced advocates online — ₹999. Covers profit sharing, roles, dissolution clauses. Ready in 24 hours.
What is a Partnership Deed?
A partnership deed — also called a partnership agreement — is the foundational legal document that governs a partnership firm in India. It is a written contract between two or more persons who agree to carry on a business jointly, contribute capital, and share the profits (and losses) in agreed proportions.
Partnership deeds are governed by the Indian Partnership Act, 1932. While the law recognizes oral partnerships, a written, stamped, and registered deed is the only reliable way to protect each partner's rights — especially when disputes arise over profit sharing, decision-making authority, or exit conditions.
Without a deed, any dispute between partners will default to the provisions of the Indian Partnership Act — which distributes profits equally regardless of actual capital contribution and gives all partners equal management rights, regardless of the agreed arrangement.
What a Partnership Deed Must Cover
A comprehensive partnership deed drafted by vakiltech's advocates will cover all of the following mandatory and protective provisions:
Profit and Loss Sharing Ratio
The most critical clause — specifies the exact percentage in which net profits and losses are distributed among partners. Without this, the Act mandates equal distribution regardless of capital contribution.
Roles and Responsibilities
Defines which partner is responsible for which aspect of the business — operations, finance, sales, client management. Prevents disputes over authority and accountability.
Capital Contribution
Records each partner's initial capital contribution (cash, assets, or intellectual property) and the process for additional capital calls if the business needs more funds.
Remuneration and Interest on Capital
Specifies whether working partners are entitled to a salary or commission, and whether partners earn interest on their capital contributions. Without this clause, no such payments are legally permissible.
Admission and Retirement of Partners
Sets out the process for admitting new partners (including whether existing partner consent is required) and the terms on which a partner may retire — including the valuation of their share.
Dissolution Clauses
Defines the events that trigger dissolution (death, insolvency, mutual agreement, court order), the procedure for winding up, and how assets are distributed after settling liabilities.
Dispute Resolution
Specifies the mechanism for resolving internal disputes — typically arbitration or mediation — before the matter escalates to litigation. Saves time and cost for both partners.
Who Needs a Partnership Deed?
- Two or more co-founders starting a business together — whether a traditional firm, a startup, or a professional practice.
- Family businesses being converted into a partnership structure with defined roles for each family member.
- Professionals such as doctors, architects, chartered accountants, or lawyers entering into a practice partnership.
- Existing partnerships that have been operating without a deed and now want to formalize and register the firm.
- Partners changing terms — such as admitting a new partner, revising the profit ratio, or buying out a retiring partner.
How vakiltech Drafts Your Partnership Deed
Get your deed in 4 simple steps:
- 1
Share Details
Fill a simple form with partner names, capital contributions, profit ratio, roles, and any specific clauses you need.
- 2
Advocate Drafting
A qualified advocate drafts a comprehensive deed tailored to your specific business structure and partner arrangement.
- 3
Review and Revise
Review the draft. Request changes — unlimited revisions are included in the ₹999 fee until you are satisfied.
- 4
Final Delivery
Receive the final deed in PDF and Word format via email, ready for printing, signing, and stamping.
Draft Your Partnership Deed Today
Protect your business and your partner relationships with a professionally drafted deed. For ₹999, vakiltech's experienced advocates draft a comprehensive, legally valid partnership deed delivered to your inbox within 24 hours.
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