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Draft Partnership Deed

Draft Partnership Deed

PARTNERSHIP DEED

This deed of partnership is executed on 1st day of April, 2014, by and between  Mr. A , aged about 62 years, having occupation as business, residing at C/o ABC , Ghod Dod Road , Surat, called the Party of the First Part, Mr B , aged about 58 years, , having occupation as business, residing at C/o ABC, Ghod Dod Road, Surat, called the Party of the Second Part and Mrs C , aged about 37 years, having occupation as business , residing at Bungalow no __ , Ghod Dod Road, Surat.  

 

Whereas all the above mentioned parties have decided to start the business in partnership under the name & style of FIRM NAME at C/o ABC, Ghod Dod Road, Surat  w. e. f. 1.04.2014. The deed of partnership therefore, is executed on following terms and conditions:-

TERMS AND CONDITIONS

1.            The business of partnership to be carried on by the firm shall be that of running of Pre- School. Moreover, the firm may engage in any other business as may be mutually agreed by all the partners.                                                                                                                                               

2.            The business of partnership shall be carried on at C/o Divine High School, Ghod Dod Road, Surat or at such other place or places as partners may mutually agree upon from time to time.

3.            The partners shall carry on the business under the name and style of FIRM NAME.

4.            The partnership is deemed to have commenced w. e. f. 01.04.2014.

5.            The duration of partnership shall be at will.

6.            The capital in the partnership shall be brought in by partners keeping in view the needs of the business. It is agreed that necessary capital shall be introduced by any of the above mentioned parties. No Interest shall be payable to the partners on the amount standing to the credit of the account of the partner. However, in future the rate of interest on capital may be paid, and increased or decreased with the consent of all the partners of the firm.

7.            Whereas parties of the second part and third part have agreed to keep themselves actively engaged in conducting the affairs of the business of the partnership firm as working partners. It is hereby agreed that in consideration of their active engagement in the partnership they shall be entitled to remuneration as under:

I. The remuneration payable to the above working partners shall be computed in the manner laid down in Explanation 3 to section 40(b) of the Income Tax Act, 1961 or any other applicable provision as may be in force in the Income tax assessment of the partnership firm for the relevant accounting year. Such amount shall be distributed amongst the said working partners in the following proportion:

NAME OF PARTNERS                       SHARE IN REMUNERATION

(1) Mr. B                                                                   50%

(2) Mrs. C                                                                 50%

                                                                              -----------                                                                                                                                  100%

             -----------           

II. Such remuneration shall be calculated at the close of the accounting year and shall be credited to the account of working partners. The working partners shall be entitled to withdraw amount of remuneration for their personal needs from time to time.

III. The partners shall be entitled to increase or reduce the above remuneration. The parties hereto may also agree to revise the mode of calculating the above said remuneration as may be agreed to by and between the partners from time to time.

8.            The share of partners in profit and loss of business is determined as under:-

    NAME OF PARTNERS                                          SHARE IN PROFIT/LOSS

(1) Mr. A                                                                                 35%

 

(2) Mr B                                                                                  35%

 

(3)  Mrs. C                                                                              30%                                                                                                                                -----------                                                                                                                                        100%                                                                                                                                   --------           

9.            No partner without the written consent of the other partners shall assign mortgage or change his share in partnership or any part of such share or make any other partner with him therein.

10.        Each partner shall be liable for his personal debts and shall not make the partnership business in any way liable for such debts.

11.        Proper books of accounts shall be kept by the partnership firm and entries made therein of all such transactions and things as are usually entered in the books of accounts kept by partners engaged in concerns of a similar nature. The said books of accounts and all letters, papers and documents belonging to the firm shall at all times be open to inspection either by the partners or their agents who shall be entitled to take the extracts and copies of the same.

12.        Accounting year of the firm shall be the financial year ending on 31st day of March every year. As early as possible after the close of the year, the Balance sheet and Profit & Loss A/c, etc. shall be drawn out showing clearly the true profit or loss and financial position of the firm under accounting year after providing the depreciation. If any of the partners desire to retire from the partnership business, he shall be entitled to do so by giving one month’s notice in writing to the others partners in advance.

13.        The bank account or accounts shall be maintained in the name of the firm and shall be operated by any of the partners.

14.        Death, insolvency or retirement of any partner shall not ipso facto dissolve the partnership firm but the remaining partners shall continue the business. The continuing partners may do the said business in partnership with other partners. It is hereby clarified that it shall be deemed as change in constitution and not succession.

15.        It is agreed between the partners that any partner can sign the delivery of any document, papers or any material on behalf of the firm from government and semi-government office.

16.        The partnership at will shall be dissolved on receiving notice by the other partners of their intention to dissolve the partnership.

17.        All disputes and questions in connection with the partnership business or this deed arising between the partners or between one of them and the legal representatives of other or others or between their respective legal representatives during the continuance of partnership or thereafter shall be referred to arbitration and the Indian Arbitration Act with all its statutory modifications shall be applicable.

18.        Notwithstanding anything contained or provided hereinabove, the partners shall have powers and full discretion to modify, alter or vary the terms and conditions of these presents in any manner they think by mutual agreement which may be reduced in writing and signed by all the partners and thereupon the said writing shall become appendage and part of these presents.

In witness whereof the said partners have put their respective signatures at Surat on the day and year first above mentioned.                     

SIGNATURE OF PARTNERS                                             SIGNATURE OF WITNESSES

 

(1)     

                                                                             

               ( Mr. A)                                                              ______________       

 

 

(2)                                     

                                                                                                     

               ( Mr. B)                                                              ______________

                

     

(3)                                     

                                                                                                     

               ( Mrs. C)                                                                 ______________