Important Provisions of partnership Deed

The usual provisions which should be contained in such documents are as follows


1. Name of the firm

Name of the firm under which the business is to be conducted.


2. Nature of Business

Nature of the business to be conducted by the partners.


3. Location

Location of the business where it is to be operated.


4. List of Partners

List of partners their names addresses and other particulars.


5. Duration of Partnership

Duration of partnership; whether it is definite period of time or indefinite period of time.


6. Date Of Commencement

Date of the Commencement of the business.
Reading: Drawbacks of doing Partnership


7. Total Capital

The total capital of the firm and the share of each partner in the capital.


8. Ratio of Profit

The ratio of sharing profits and losses of each partners.


9. Amount of Drawing

The amount that each partner shall be allowed to withdraw in anticipation of profit.


10. Interest on Capital and Drawings

Whether interest to be allowed on capital and charged on drawings and at what rates.


11. Amount of Salary

The amounts of any salary payable to partners.
Reading: The Best Benefits of Partnership


12. Division of Work

The division of work amount the partners for the management of the firm.


13. Amount of Profit

The fixation of the amount of profit payable to any employee other than salary.


14. Head Office and Branches

Allotment of the place for head office an branches.


15. Dealing Bank

The name of the dealing bank.


16. Additional Capital

How further capital, if necessary is to be introduced.


17. Audit of Accounts

Provisions regarding the preparation audit and signing by the partners of annual accounts. 
Reading:What to Consider before starting Business?


18. Rules of Admission and Withdrawal

Rules regarding to retirement, debt and admission of partner, including minor.


19. Determination Of Good Will

How the value of good will is determined and accounts will be cleared of retired or deceased partner.


20. Period of Accounts

Period after which final accounts are to be prepared.


21. Rights and Duties of Partners

Classes as to the rights and duties of each partner.


22. Loan and Interest

Provisions in regard to amount to be brought in by and the partners by way of loans and interest there on.


23. Settlement of Accounts

Settlement of accounts at the dissolution of firm.


24. Arbitration

Provision for arbitration in case of disputes among the partners.


25. Deficiency in Capital

How the deficiency in capital will be covered at the insolvency of arty partner.
Reading: Types / Kinds of Partners


26. Witness

The date and witnesses of agreement.


27. Ways of Dissolution

The manner under which the firm may be dissolved.

Any other clause or clauses which may be found necessary at any time may be contained here by the mutual consent of all the partners

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