Partnership deed format

Need a partnership deed format? This page explains when you need it, what it must contain and how to make it valid, step by step. You can also get CIVL’s ready-to-use partnership deed format as an editable Word file and PDF.

What is a partnership deed?

A partnership is governed by the Indian Partnership Act, 1932. The deed records the terms the partners have agreed; where the deed is silent, the Act’s default rules apply (for example, equal profit sharing).

Registration of the firm under Section 58 is optional, but under Section 69 an unregistered firm (or its partners) cannot file a suit against third parties to enforce a contract. Banks also usually ask for the deed to open a current account, and it is needed for the firm’s PAN and GST registration.

When you need it

• Two or more people are starting a business together as a partnership firm.
• A partner is joining, retiring or the profit ratio is changing.
• You are opening a bank account or applying for PAN or GST for the firm.
• You want to register the firm with the Registrar of Firms.

Stamp duty, notarisation and registration

Requirement	What applies	Notes
Stamp paper / e-stamp	Required	Duty depends on the state and sometimes on the capital.
Notarisation	Usually	Commonly notarised; required by some Registrars.
Registration	Firm registration optional	With the state Registrar of Firms; strongly recommended.
Witnesses	Two	Sign the deed with the partners.

Firm registration procedures, fees and stamp duty differ between states. Check your state’s Registrar of Firms portal.

What the partnership deed must contain

• Name and principal place of business of the firm.
• Names, ages and addresses of all partners.
• Nature of business and date of commencement.
• Capital contribution of each partner, and interest on capital, if any.
• Profit and loss sharing ratio.
• Salaries or remuneration to working partners.
• Bank account operation and authority to sign.
• Admission, retirement, death of a partner and dissolution.
• Dispute resolution, signatures of partners and two witnesses.

How to make it valid: step by step

1. Agree the terms. Capital, ratio, roles and exit terms.
2. Fill in the format. Name the firm and list all partners correctly.
3. Pay stamp duty. Buy stamp paper or e-stamp at your state’s rate.
4. Sign and notarise. All partners sign before two witnesses and a notary.
5. Apply for PAN and bank account. Use the deed to get the firm’s PAN and open a current account.
6. Register the firm. File Form 1 (or the state’s form) with the Registrar of Firms.

Common mistakes to avoid

• Staying unregistered. You may not be able to sue a customer or supplier who defaults.
• No exit clause. Disputes over a partner’s exit are common and costly.
• Vague capital and profit terms. Write exact amounts and ratios.
• Not updating the deed. Execute a supplementary deed when partners or terms change.

Frequently asked questions

Is registration of a partnership firm compulsory?

No, but an unregistered firm cannot sue third parties to enforce contracts (Section 69).

What stamp duty applies to a partnership deed?

It depends on the state, and in some states on the capital contributed.

How many partners can a firm have?

Up to 50 under the Companies (Miscellaneous) Rules, 2014.

Partnership firm or LLP?

An LLP gives limited liability but needs MCA registration and more compliance. A firm is simpler but partners are personally liable.

Where can I get a ready-to-use partnership deed format?

CIVL’s partnership deed format comes as an editable Word file and a print-ready PDF, with notes on filling every blank and checking your state’s rules. Use the button above to be told when it is available.

Official sources

• Indian Partnership Act, 1932 (India Code)
• Indian Stamp Act, 1899 (India Code)