PARTNERSHIP DEED
This Deed of Partnership is made and executed at Hyderabad on this __th day of _______2012 by and between:
1. ____________ S/o _______ age about ___ years Occ: Business R/o H.No ________________________________, Hyderabad.
(herein after referred to as the First and Second partners respectively .)
WHEREAS the Partners 1 and 2 named above have constituted themselves into a Partnership firm from this ____th ______ 2012.
WHEREAS the Partners herein have thought expedient and desirable to have an instrument of Partnership in order to avoid any possible disputes and misunderstandings.
NOW THEREFORE THIS INSTRUMENT OF PARTNERSHIP WITNESSES AND THE PARTIES HERETO HAVE MUTUALLY AGREED UPON
THE FOLLOWING TERMS AND CONDITIONS:
1. The name of the firm shall be "_______” or any other name as the Partners may decide from time to time.
2. The business of the firm shall be carried on at R/o H.No :_______________________, Hyderabad.
3. The firm may do the following businesses:
a) All kinds of __________________.
4. The Partnership shall be at will.
5. The Partners herein have agreed to invest such sums towards their capital from time to time as per the needs and exigencies of the business. Such capital shall carry interest at the rate of 12% (Twelve percent) per annum..
6. The firm shall regularly maintain in the ordinary course of business a true and correct account of all the incomings and outgoings of the Partnership business and also of its assets and liabilities in proper books of accounts which shall be closed once in every year on 31st March, to profit and loss account and to the Balance Sheet as on that date.
7.Each Partner shall have the access to the books of accounts and right to inspect and verify the same and take copies and extracts there from.
8. The firm may maintain one or more than one bank account with one or more than one bank and such account or accounts shall be operated upon by all the Partners either individually or Jointly.
9. The monies, securities and other valuables of and belonging to the firm as may come into its possession and which are not immediately needed for its day to day business, shall be kept properly invested or in safe custody and no Partner shall utilise or spend any money, security, goods or other property or assets of the firm for his/her own individual benefit.
10. All Partners herein shall be the Working Partners of the firm and shall at all time during the Partnership devote sufficient time and attention to the said Partnership diligently and faithfully carry on day to day affairs of the business for the greatest advantage of the Partnership. The First partner shall be the managing partner and is herein authorized to sign all sale/purchase deeds.
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11. The parties herein shall share the profit or bear the losses as the case may be in equal proportion.
Any partner shall only after written mutual consent of all the partners can make any withdrawal of their share of profit or remuneration from the firm.
12. All the Partners are working Partners and shall be entitled to the remuneration to
be calculated in the following manner.
i) For the First Rs. 3,00,000/- 90% of the book profit or Rs. 1,50,000/- which ever is more.
ii) For the balance of the remaining profits 60% of the book profits.
iii) In the case of loss total remuneration to all the partners shall be restricted
to Rs. 1,50,000/-. The book profits mean the profits as shown in the profit and loss account of the firm from all sources of income.
iv) The remuneration as calculated above will be credit to the account of the all the partner in equal proportion:
For the purpose of the clause ‘Book Profit’ means profit as shown in the Profit and Loss Account for relevant accounting year computed in the manner laid down in Chapter IV-D of the
Income tax Act (43 of 1961) as increased by the aggregate amount of remuneration paid or payable to the partner under this clause, if such amount has been deducted while computing the net profit.
(b) This remuneration shall be charged to the profit and loss account before ascertainment of divisible profit or losses as the case may be.
(c) The remuneration payable to the working partner shall be credited to their respective capital/current account at the end of each financial year.
13. The Partners shall be entitled to make withdrawals from the firm, from time to time such sum or sums as may be determined mutually by all the Partners provided such drawals shall be debited to the accounts of the respective Partners in the firm.
14. No Party shall be entitled to transfer his/their interest in the firm either by way of mortgage, sale, gift, exchange or other wise or introduce or attempt to introduce any person into the firm with any right whatsoever.
15. It is hereby expressly agreed that for proper and efficient management and conduct of business of the firm and as per the needs and exigencies of the business, the Partners may appoint, nominate or constitute one or more than one partner amongst themselves only, as their attorney or attorneys delegating such power as are necessary including the power to borrow or raise loans for the firm and to operate its bank accounts.
16. No partner is allowed the borrow or lend, give guarantee on behalf of the firm or create a charge on the assets of the firm neither in his personal capacity nor acting as a partner of the firm unless approved expressly in writing by all the partners on a case to case basis
17. No new Partner shall be introduced or admitted into the business without the written consent of all the Partners.
18. If any Partner shall at any time during the subsistence of the Partnership be desirous of retiring from the firm, it shall be competent for him/her to do so, provided always that he/she shall in such a case give at least Three months of clear notice of his intention to do so. Thereafter, his/her account shall be settled within a reasonable time. This period can with mutual consent be increased/reduced or waived.
Further, the retiring Partner by his act of retirement will relinquish assign and deliver all his right in the business of the Partnership, its assets, stocks etc. to the continuing Partner(s) absolutely and forever. The retiring Partner shall be entitled only to the extent of amounts shown to his/her credit and shall not have any nature of right, title or interest in the business of the Partnership firm.
19. Until decided otherwise from time to time in case of retirement or death of any of the Partners herein, the firm shall not be dissolved but will continue by admitting any one legal heir of the deceased partner into Partnership business, with the consent of surviving partners, on the same terms and conditions as applicable to the deceased Partner or as decided otherwise and agreed upon.
20. Should any dispute or doubt or question arise between the Partners in respect of the Partnership or its affairs in respect of any matter touching the construction or interpretation of any matter of this Deed, the same shall be referred to arbitration in accordance with the Law of Arbitration in force and applicable.
21. For matters which are not provided in this DEED, The Partnership Act in force shall apply.
IN WITNESS WHEREOF the Parties herein have signed this DEED in the presence of the following witnesses.
WITNESSES: SIGNATURE OF PARTNERS
1. 1.
1. ____________ S/o _______ age about ___ years Occ: Business R/o H.No ________________________________, Hyderabad.
(herein after referred to as the First and Second partners respectively .)
WHEREAS the Partners 1 and 2 named above have constituted themselves into a Partnership firm from this ____th ______ 2012.
WHEREAS the Partners herein have thought expedient and desirable to have an instrument of Partnership in order to avoid any possible disputes and misunderstandings.
NOW THEREFORE THIS INSTRUMENT OF PARTNERSHIP WITNESSES AND THE PARTIES HERETO HAVE MUTUALLY AGREED UPON
THE FOLLOWING TERMS AND CONDITIONS:
1. The name of the firm shall be "_______” or any other name as the Partners may decide from time to time.
2. The business of the firm shall be carried on at R/o H.No :_______________________, Hyderabad.
3. The firm may do the following businesses:
a) All kinds of __________________.
4. The Partnership shall be at will.
5. The Partners herein have agreed to invest such sums towards their capital from time to time as per the needs and exigencies of the business. Such capital shall carry interest at the rate of 12% (Twelve percent) per annum..
6. The firm shall regularly maintain in the ordinary course of business a true and correct account of all the incomings and outgoings of the Partnership business and also of its assets and liabilities in proper books of accounts which shall be closed once in every year on 31st March, to profit and loss account and to the Balance Sheet as on that date.
7.Each Partner shall have the access to the books of accounts and right to inspect and verify the same and take copies and extracts there from.
8. The firm may maintain one or more than one bank account with one or more than one bank and such account or accounts shall be operated upon by all the Partners either individually or Jointly.
9. The monies, securities and other valuables of and belonging to the firm as may come into its possession and which are not immediately needed for its day to day business, shall be kept properly invested or in safe custody and no Partner shall utilise or spend any money, security, goods or other property or assets of the firm for his/her own individual benefit.
10. All Partners herein shall be the Working Partners of the firm and shall at all time during the Partnership devote sufficient time and attention to the said Partnership diligently and faithfully carry on day to day affairs of the business for the greatest advantage of the Partnership. The First partner shall be the managing partner and is herein authorized to sign all sale/purchase deeds.
.
11. The parties herein shall share the profit or bear the losses as the case may be in equal proportion.
Any partner shall only after written mutual consent of all the partners can make any withdrawal of their share of profit or remuneration from the firm.
12. All the Partners are working Partners and shall be entitled to the remuneration to
be calculated in the following manner.
i) For the First Rs. 3,00,000/- 90% of the book profit or Rs. 1,50,000/- which ever is more.
ii) For the balance of the remaining profits 60% of the book profits.
iii) In the case of loss total remuneration to all the partners shall be restricted
to Rs. 1,50,000/-. The book profits mean the profits as shown in the profit and loss account of the firm from all sources of income.
iv) The remuneration as calculated above will be credit to the account of the all the partner in equal proportion:
For the purpose of the clause ‘Book Profit’ means profit as shown in the Profit and Loss Account for relevant accounting year computed in the manner laid down in Chapter IV-D of the
Income tax Act (43 of 1961) as increased by the aggregate amount of remuneration paid or payable to the partner under this clause, if such amount has been deducted while computing the net profit.
(b) This remuneration shall be charged to the profit and loss account before ascertainment of divisible profit or losses as the case may be.
(c) The remuneration payable to the working partner shall be credited to their respective capital/current account at the end of each financial year.
13. The Partners shall be entitled to make withdrawals from the firm, from time to time such sum or sums as may be determined mutually by all the Partners provided such drawals shall be debited to the accounts of the respective Partners in the firm.
14. No Party shall be entitled to transfer his/their interest in the firm either by way of mortgage, sale, gift, exchange or other wise or introduce or attempt to introduce any person into the firm with any right whatsoever.
15. It is hereby expressly agreed that for proper and efficient management and conduct of business of the firm and as per the needs and exigencies of the business, the Partners may appoint, nominate or constitute one or more than one partner amongst themselves only, as their attorney or attorneys delegating such power as are necessary including the power to borrow or raise loans for the firm and to operate its bank accounts.
16. No partner is allowed the borrow or lend, give guarantee on behalf of the firm or create a charge on the assets of the firm neither in his personal capacity nor acting as a partner of the firm unless approved expressly in writing by all the partners on a case to case basis
17. No new Partner shall be introduced or admitted into the business without the written consent of all the Partners.
18. If any Partner shall at any time during the subsistence of the Partnership be desirous of retiring from the firm, it shall be competent for him/her to do so, provided always that he/she shall in such a case give at least Three months of clear notice of his intention to do so. Thereafter, his/her account shall be settled within a reasonable time. This period can with mutual consent be increased/reduced or waived.
Further, the retiring Partner by his act of retirement will relinquish assign and deliver all his right in the business of the Partnership, its assets, stocks etc. to the continuing Partner(s) absolutely and forever. The retiring Partner shall be entitled only to the extent of amounts shown to his/her credit and shall not have any nature of right, title or interest in the business of the Partnership firm.
19. Until decided otherwise from time to time in case of retirement or death of any of the Partners herein, the firm shall not be dissolved but will continue by admitting any one legal heir of the deceased partner into Partnership business, with the consent of surviving partners, on the same terms and conditions as applicable to the deceased Partner or as decided otherwise and agreed upon.
20. Should any dispute or doubt or question arise between the Partners in respect of the Partnership or its affairs in respect of any matter touching the construction or interpretation of any matter of this Deed, the same shall be referred to arbitration in accordance with the Law of Arbitration in force and applicable.
21. For matters which are not provided in this DEED, The Partnership Act in force shall apply.
IN WITNESS WHEREOF the Parties herein have signed this DEED in the presence of the following witnesses.
WITNESSES: SIGNATURE OF PARTNERS
1. 1.
Partnership Deed