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THIS DEED OF PARTNERSHIP is made and entered at Hyderabad on this 09th day of January,2010 between:
_______________, S/D/o _______________, aged _________, R/o. _______________________________________________________________herei nafter called the Party of the FIRST PART (which term and expression shall include and mean her heirs, assigns, legal representatives, successors, administrators etc.); and _______________, S/D/o _______________, aged _________, R/o. _______________________________________________________________herei nafter called the Party of the SECOND PART (which term and expression shall include and mean his heirs, assigns, legal representatives, successors, administrators etc.) and _______________, S/D/o _______________, aged _________, R/o. _______________________________________________________________herei nafter called the Party of the THIRD PART (which term and expression shall include and mean his heirs, assigns, legal representatives, successors, administrators etc.) and
SECOND PART and THIRD PART have agreed to carry on the business of a) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ____________________________________________ b) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ __________________________________________________ c) ___________________________________________________________________________ ___________________________________________________________________________ _______________________________________________________ WHEREAS all the Parties hereto desire that the terms and conditions of the parties be reduced in writing in order to avoid any dispute or ambiguities in future as per the provisions of the Indian Partnership Act. 1932.** 2 ** WHEREAS the Parties of the FIRST PART. 2 .
3 . That the name of the Partnership Firm shall be 2. NAME OF THE FIRM: ____________________. 3. COMMENCEMENT: That the Partnership shall be deemed to have commenced with effect from the date of this deed.NOW THEREFORE THIS DEED OF PARTNERSHIP WITNESSETH AS FOLLOWS: 1. OBJECTS: Following are the objects of the firm a) ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ __________________________________________ b) ____________________________________________________________________ ______________________________________________________ c) ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ __________________________________________ The above objects may be modified or changed to suit the changed environment in which the firm will be operating at that point of time in future or take up any new objects apart from those listed above which may be beneficial to the firm to pursue and for the common good of the firm as decided and agreed to by all the partners from time to time.
6. Any partner shall be entitled to appear before any authority on behalf of the firm duly authorized. if required and can do any lawful act on behalf of the firm. SHARING OF PROFITS AND LOSSES: That the profits and losses of the partnership shall be shared between the parties in the ratio of ___:___:____ after deducting all the expenses of the business duly incurred in the 4 . PLACE: The business of the partnership shall be carried on at _________________ ______________________or at such other place or places as may be decided by the partners from time to time.4. CAPITAL AND LOANS: The partners shall contribute to the initial capital of the firm such sum as may be required and further capital may be contributed from time to time as per the requirements of the business and such contributions can be capital or loans or otherwise and may be contributed by the parties hereto as may be required in such proportions and on such terms mutually agreed to from time to time. The partnership can open any branch office within India or abroad at any time at any place from time to time 5. All the partners are equally liable for all the acts. That the Partnership shall be managed and supervised by the Party of FIRST PART and SECOND PART who shall be the MANAGING PARTNERS and the Party of the THIRD PART shall be a WORKING PARTNER. things done by the firm which are done on behalf of the firm in the ordinary course of the business of the firm. MANAGEMENT. which shall be binding on all the partners 7.
a. 10. WITHDRAWALS.1961 and they shall be paid accordingly. It is specifically agreed to/ by and between the partners that in the event of the firm incurring losses during the relevant previous year the remuneration payable to the working partners shall be restricted in accordance with the provisions of the Section 40(b)(v) of the IT Act. The remuneration so paid or by whatever name it is called for the services rendered by the partners to the firm shall be subject to Section 40(b)(v) and any other applicable provisions of the Income Tax Act.ordinary course and for the purpose of business including remuneration. The partners of the firm by mutual consent/agreement increase or reduce or revise the remuneration amongst them.payment of the same during the year. Partners shall not be entitled to any interest on initial capital as mentioned in Para 5 above.1961. INTEREST ON CAPITAL. commission and interest payable to the partners. 9. That the parties may by mutual consent make withdrawals from time to time for their personal needs and requirements which shall be treated as their personal drawings and be adjusted against the share of profit accruing to them at the end of each year. Such remuneration shall be paid on a monthly basis or in the event of non. the same will be credited to the respective current accounts of the Partners at the close of the accounting period when final accounts of the partnership are drawn up. Any contribution over and above the initial capital shall be entitled for interest @ 12% p. 5 . SALARY: All the Partners of the firm are entitled to such monthly remuneration for the services rendered by them to the firm as may be mutually agreed upon by the Parties hereto. the 8.
Proper books of account as are commonly maintained in this line of business shall be maintained and caused to be maintained by the partners and entries shall be made therein of all such transactions as are usually entered in the books of accounts. b) Assign. The first accounting year ending of the firm shall be 31st March XXXX<YEAR>. in which case the same shall be rectified. deeds and things done in the good faith by any one party or parties hereto either done in his or her own name or in the name of the partnership in connection with or in furtherance of the partnership shall be deemed to have been done by him or them on behalf of all the parties hereto and this partnership and the other parties shall be duly bound thereby. 13. All the sums received by the firm whether in cash or through cheques or other negotiable instruments shall be deposited in the bank account of the firm or cash may be retained for the current expenses of the business of the partnership as required. 16. (c) Be liable for their separate and private liabilities and the firm will not be responsible for the personal liabilities and debts of the partners. assign. That all the acts. ACCOUNTS. That on 31st March of every year the Profit and Loss Account and the Balance sheet shall be drawn up and the net profit or loss of the partnership as determined shall be duly adjusted among the partners in the proportions as set-forth Para 7 above. Such accounts maintained in regular course shall be binding on both the partners unless any manifest error is pointed out in writing by the parties within reasonable time. ANNUAL ACCOUNTS. No Partner shall without the consent and concurrence in writing of the other shall a) Compound. mortgage or charge his or her interest or share in the Partnership 6 .11. The firm may borrow from banks such amounts as may deem fit for the purposes of the business with the mutual consent of both the partners. AUDITING OF ACCOUNTS: That the accounts of the firm may be audited. That all the partners shall: (a) Carry on the partnership business to the greatest common advantage. if required under the applicable laws at the end of each financial year by a practicing Chartered Accountant. 12. (b) Be just and faithful to one another and render true account and full information of all the things affecting the partnership to one another. 17. 14. 15. release any debt due to the partnership. BANK ACCOUNTS: That the Bank Account or Accounts of the partnership shall be opened in the name of the firm and the same shall be operated jointly by PARTY OF FIRST PART and PARTY OF THE SECOND PART. The accounts shall be open to inspection to the partners who shall also be entitled to take extracts and copies there from as they deem fit.
c) Engage in any transactions with any person. firm or company whom the other partners requested the dealing partner not to deal or trust in any business transactions previously 7 .
then an assessment of all the assets and liabilities of the firm shall be made as on the date of the death and the balance of the capital as well as the profit/loss shall be paid to the legal heir as per the books of account of the firm and as per the assessment made. MISCONDUCT. the other party may notify in writing such party who. TERMINATION. In case the legal heirs are not ready to become a partner. 23. if any shall be deviated among the partners in the proportions in which they are entitled to share profits. 20. All the partners have a right to demand for dissolution of the firm at any time. ii. 8 . In paying to each partner ratably what is due to her or him from the firm for advances as distinguished from capital. 1996 shall in that behalf apply. If any partner of the firm is guilty of any misconduct affecting the firm or the other parties. shall make amendment for such misconduct to the satisfaction of the other parties within a reasonable time of such notice. if necessary buy the parties individually in the proportions to which they were entitled to share profits. iii. The residue.18. The account of the outgoing Partner shall be either settled immediately or within such time or as at the closure of accounts as agreed between the parties herein above. the legal heirs shall be entitled to become the partner of the firm along with the surviving partner. liabilities existing or contingent as well as the goodwill of the partnership. 19. That on the termination of the partnership. otherwise he shall be deemed to have automatically retired from the partnership of the firm and his rights and liabilities shall have been determined accordingly as provided already. GOODWILL AND RETIREMENT: The goodwill of the firm shall belong to all the parties. 22. 24. ARBITRATION: That in the event of any dispute between the parties or their legal representative about the interpretation of this deed of their rights and liabilities there under or any matter whatsoever touching upon the partnership affairs whether in course or on or about termination of the partnership or thereafter shall be settled by arbitrations and the provisions of the Arbitration and Conciliation Act. DISSOLUTION: It is expressly agreed that the firm shall not be dissolved by reason of death or insolvency of a partner and shall continue with the legal heirs of the other partner. next out of capital and lastly. Losses including deficiencies of capital be paid first out of profits. Any partner desirous of retiring may so retire by serving a two months notice in writing to the firm as well as to the other partners of the firm and the accounts of the Partnership shall be closed as on that date. The assets of the firm including any contribution by the parties to makeup deficiencies of capital shall be applied in the following manner order: i. the parties hereto shall cause a full and accurate inventory to be prepared of the affairs of the partnership taking into account all the assets. in paying the debts of the firm to third parties. 21. In case of death of any of the parties. DEATH.
abandon or vary the terms and conditions of this partnership deed according to the necessities of the business convenience of the Partners in any manner whatsoever they think fit by mutual agreement and such modification. as amended to date shall govern the matters not specifically provided in this deed. unless otherwise mutually decided. the party of the SECOND PART SIGNED AND DELIVERED by ___________________. alteration etc. 1932. the party of the THIRD PART Witness: 9 . the party of the FIRST PART SIGNED AND DELIVERED by __________________. 26. The provisions of Indian Partnership Act. SIGNED AND DELIVERED by _________________. shall be by way of a Supplemental deed and the same shall form part of this Deed. the partners shall have full rights and discretions to modify.25. Not withstanding anything stated or provided herein. alter.