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General Partnership Deed for India

General Partnership Deed Template for India

A General Partnership Deed is a fundamental legal document under Indian law that establishes and governs the relationship between two or more partners who agree to share the profits of a business carried on by all or any of them acting for all. This document, governed by the Indian Partnership Act, 1932, outlines crucial elements including capital contributions, profit-sharing ratios, management responsibilities, and operational procedures. It serves as the constitutional document of the partnership, defining partners' rights, duties, and liabilities while providing a framework for business operations and dispute resolution.

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What is a General Partnership Deed?

The General Partnership Deed is essential for businesses in India where two or more individuals wish to formalize their business relationship through a partnership structure. This document is fundamental for compliance with the Indian Partnership Act, 1932, and serves multiple crucial purposes: it defines the terms of the business relationship, establishes profit-sharing mechanisms, outlines management responsibilities, and provides clarity on capital contributions. While partnership registration is optional in most Indian states, having a properly drafted partnership deed is vital for preventing future disputes and establishing clear operational guidelines. The deed becomes particularly important in situations involving partner exits, dispute resolution, or when dealing with third parties. It should be drafted with careful consideration of applicable stamp duty requirements and state-specific regulations.

What sections should be included in a General Partnership Deed?

1. Parties: Details of all partners entering into the partnership, including full names, addresses, and occupation

2. Background: Brief context about the partners' intention to form a partnership and the nature of the intended business

3. Definitions: Definitions of key terms used throughout the partnership deed

4. Partnership Name and Business: The agreed name of the partnership firm and detailed description of the business activities

5. Place of Business: Principal place of business and any branch locations

6. Term of Partnership: Duration of the partnership - whether fixed term or at will

7. Capital Contribution: Details of initial capital contributed by each partner and provisions for additional capital

8. Profit and Loss Sharing: Ratio and terms for sharing profits and losses among partners

9. Management and Decision Making: Rights, responsibilities, and authority of partners in managing the business

10. Banking Operations: Details of banking arrangements and operation of partnership accounts

11. Books of Account: Provisions for maintaining accounting records and their inspection

12. Rights and Duties of Partners: Detailed obligations and entitlements of all partners

13. Retirement and Death: Procedures and consequences of partner retirement or death

14. Dissolution: Circumstances and procedures for partnership dissolution

15. Governing Law: Specification of Indian law as governing law and jurisdiction

What sections are optional to include in a General Partnership Deed?

1. Non-Competition: Restrictions on partners engaging in competing businesses, used when there's significant intellectual property or trade secrets

2. Intellectual Property Rights: Provisions regarding ownership and use of IP, needed when the partnership involves creation or use of intellectual property

3. Admission of New Partners: Procedures for admitting new partners, important for partnerships planning future expansion

4. Arbitration: Detailed dispute resolution procedures, recommended for larger partnerships

5. Insurance: Requirements for business insurance, important for high-risk businesses

6. Goodwill Valuation: Method of valuing goodwill, important for professional services firms

7. Leave and Absence: Rules regarding partners' leave and absence, important for active professional partnerships

What schedules should be included in a General Partnership Deed?

1. Schedule A - Capital Contributions: Detailed breakdown of each partner's capital contribution, including nature of contribution (cash, property, etc.)

2. Schedule B - Profit Sharing Ratio: Detailed breakdown of profit and loss sharing ratios among partners

3. Schedule C - Assets and Properties: List of all partnership assets and properties at the time of formation

4. Schedule D - Rules and Regulations: Detailed internal regulations and procedures for partnership operations

5. Appendix 1 - Partner Details: Detailed information about each partner including KYC documents

6. Appendix 2 - Business Plan: Initial business plan and projections (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions

































Clauses



































Relevant Industries

Professional Services

Retail

Manufacturing

Real Estate

Trading

Construction

Healthcare

Information Technology

Hospitality

Consulting

Agriculture

Education

Financial Services

Transportation and Logistics

Relevant Teams

Legal

Compliance

Finance

Operations

Risk Management

Business Development

Corporate Affairs

Administration

Executive Leadership

Relevant Roles

Business Owner

Entrepreneur

Managing Partner

Professional Partner

Legal Counsel

Company Secretary

Chief Executive Officer

Chief Financial Officer

Business Development Manager

Operations Manager

Risk Manager

Compliance Officer

Senior Partner

Junior Partner

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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