To avoid unnecessary misunderstanding, harassment and unpleasantness among the partners in the event of any dispute a partnership deed is formed in the form of a written legal document . For mutual benefit, the registration of Deed of Partnership is made under the Indian Registration Act, 1908. A partnership deed is made to avoid apprehension of the Deed of partnership in the case of being destroyed or mutilated in the possession of the partners. A deed of partnership is required to be made out and registered under the Indian movable property Act together with other movable properties involved. An instrument of partnership may be constituted by more than one document.
Where can this Partnership Deed be used:
This Partnership Agreement can be used by Partners wishing to form a partnership for doing business together. It is strongly recommended or encouraged for partnerships to have some kind of agreement among themselves, in case future disputes prove difficult to arbitrate. It is meant to promote mutual understanding and avoid mistrust. It indicates the terms on which the business corporation is founded.
How a partnership deed can be Executed?
The partnership agreement must be printed on a Non-Judicial Stamp Paper with a value of Rs.100/- or more. The partnership agreement is usually signed in the presence of all the partners and each of the partners would retain a signed original for his/her records.
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