PARTNERSHIP DEED
This Deed of Partnership is executed at New Delhi on this ___ day of , 20, between:
1. Sh. X S/o ___, R/o ___, hereinafter referred to as the “First Party,” which expression shall include his heirs, successors, executors, and legal representatives;
AND
2. Sh. Y S/o ___, R/o ___, hereinafter referred to as the “Second Party,” which expression shall include his heirs, successors, executors, and legal representatives.
WHEREAS:
- The First Party is the tenant of property measuring 1000 sq. ft., located on the ground floor of property bearing No. E-1, Ram Nagar, Delhi.
- The First Party intends to carry on the business of interior decoration, while the Second Party, having expertise in the trade, has expressed interest in jointly conducting such business.
- Both parties have agreed to enter into a partnership to engage in the business of interior decoration, furnishing, manufacture and sale of furniture, and related accessories.
NOW, THEREFORE, THIS DEED WITNESSES AS FOLLOWS:
1. Name and Style
The partnership business shall be carried on under the name and style of M/s XYZ.
2. Commencement
The business of the partnership shall be deemed to have commenced on the ___ day of , 20.
3. Principal Place of Business
The principal place of business of the partnership shall be at E-1, Ram Nagar, Delhi, which may be relocated by mutual consent.
4. Nature of Business
The partnership shall engage in the business of:
- Interior decoration and furnishing;
- Manufacture and sale of furniture and related accessories.
The scope of business may be expanded to other ventures by mutual agreement.
5. Sharing of Profits and Losses
The net profits and losses of the partnership shall be shared as follows:
- First Party: 51%
- Second Party: 49%
6. Capital Contribution
- Both parties have initially contributed ₹15,000/- each as capital.
- Any additional capital required shall be contributed equally unless otherwise agreed, and such contributions shall not bear interest.
- Loans or deposits from external sources shall only be binding if obtained with the written consent of both parties and recorded in the books of accounts.
7. Monthly Withdrawals
Each partner may withdraw ₹2,000/- per month, which will be adjusted in the profit and loss account.
8. Rent Adjustment
The First Party shall be entitled to withdraw ₹5,000/- per month towards rent for the property at E-1, Ram Nagar, Delhi.
9. Tenancy Rights
The tenancy rights of the property at E-1, Ram Nagar, Delhi, shall solely vest with the First Party. Upon dissolution of the partnership, the Second Party shall have no claim over these rights.
10. Maintenance of Accounts
Proper books of accounts shall be maintained at the principal place of business and shall be accessible for inspection by both partners.
11. Accounting Period
The first accounting period shall close on the 31st of March, 20__, and subsequent financial years shall align with the Indian financial year (1st April to 31st March).
12. Operation of Bank Accounts
The partnership’s bank accounts shall be operated by either of the partners, as mutually agreed.
13. Finalization of Accounts
At the end of each accounting period, a trial balance, profit and loss account, and balance sheet shall be prepared, and profits/losses shall be adjusted to the partners’ respective capital accounts.
14. Restriction on Competitive Trade
Neither partner shall engage in any similar or competing business individually, jointly with others, or in any other capacity.
15. Partnership at Will
The partnership shall be at will. A partner intending to retire or dissolve the partnership must give 15 days’ advance notice. During this period, accounts shall be finalized for settlements.
16. Arbitration Clause
Disputes arising under this partnership deed or concerning the partnership business shall be resolved through arbitration, as per the provisions of the Arbitration and Conciliation Act, 1996.
17. Applicability of Indian Partnership Act
For all matters not explicitly covered herein, the provisions of the Indian Partnership Act, 1932, shall apply.
IN WITNESS WHEREOF, the parties hereto have signed this deed on the day and year first above written in the presence of the following witnesses:
First Party: ___________________________
Second Party: ___________________________
Witnesses:
This comprehensive deed ensures compliance with Indian laws and provides flexibility for the partners. Always consult a lawyer to tailor it to specific needs.
