Partnership Deed Format & Template

What is a Partnership Deed?

When to use it

• Two or more people are starting a business together as a partnership firm.
• An existing partnership has been running on an oral understanding and needs a written deed.
• You need the deed to open a bank account, apply for the firm’s PAN or register with the Registrar of Firms.
• The terms have changed — a new partner, a retirement or a new profit-sharing ratio — and a fresh or supplementary deed is needed.

What you'll need

Keep these details ready — the form asks for them in this order.

How it works

1. 1

   Enter the firm and partners

   Firm name, business, principal place of business, and each partner’s details.

2. 2

   Set capital and profit sharing

   Each partner’s capital contribution, profit and loss ratio, and any salary or interest on capital.

3. 3

   Agree management and exit

   Who signs for the firm and operates the bank account, and the terms for admission, retirement and dissolution.

4. 4

   Preview, pay and download

   Review the full deed, pay ₹500 and download it.

5. 5

   Stamp, sign and register

   Print on stamp paper of your state’s value, sign with witnesses, and apply to the Registrar of Firms if you are registering.

How to make it legally valid

• Stamp duty at your state’s rate for a partnership instrument — in many states it depends on the capital contributed.
• Signed by every partner, with witnesses.
• Registration with the state Registrar of Firms is optional, but under Section 69 of the Act an unregistered firm cannot sue third parties to enforce contracts, so most firms register.
• Notarisation is commonly asked for by banks and registrars, although the Act does not itself require it.

Stamp paper. Stamp duty on a partnership deed is set by each state and often varies with the capital contributed. Confirm the value with the stamp vendor or the Registrar of Firms.

Common mistakes to avoid

• Not stating the profit and loss sharing ratio — the Act then presumes equal shares.
• Leaving out what happens on a partner’s retirement or death.
• Not registering the firm, then finding it cannot sue to recover dues.
• Different firm names on the deed, the bank account and the PAN application.