04/02/2026
THINGS TO REMEMBER WHILE DRAFTING A PARTNERSHIP DEED
A partnership deed is a legally binding document. Whatever you write here is valid in court, so draft it carefully.
Ensure partners’ names match the PAN card and addresses match the Aadhaar card to avoid registration and compliance issues.
Clearly mention the capital contribution of each partner and the rules for future capital additions.
Define roles, duties, and authority clearly, including who can sign cheques, contracts, or represent the firm.
Specify interest on capital and drawings, if applicable, along with the rate.
Include clear clauses for admission, retirement, or death of a partner.
Mention partner salary, commission, or bonus clearly, which is important for Income Tax compliance.
Draft smart. Avoid disputes. Stay compliant.