Nevertheless, a partnership is an inexpensive and convenient way for several people to do business together and is a popular business structure for many Indians. And an important step in establishing the partnership is to register the agreement between the partners in writing using this partnership act. The deed of partnership is an agreement between the partners of a company that describes the terms of the partnership between the partners. A partnership company is one of the most popular types of organizations for starting a new business. The proper functioning and success of a partnership company requires a clear understanding between its partners of the different policies that govern their partnership. The Act of Partnership serves this purpose. It defines the different terms such as profit/loss sharing, salary, interest on capital, subscriptions, admission of a new partner, etc. in order to bring clarity to the partners. In a partnership, several partners may work together (as opposed to a sole proprietor). Each partner shares a portion of the partnership`s profits and losses, and each partner is personally liable for the company`s debts and obligations. Although the issuance of a company deed is not mandatory, it is always preferable to conclude a company deed to avoid possible disputes and disputes between the partners.

The agreement may be concluded between two or more partners. It must be stamped and signed by all partners. ii) Duration of the partnership: Whether the duration of the partnership is limited or for a specific project Note: The above elements are general clauses and there may be other clauses that can be added to the deed of company. Compared to a business or trust, a partnership may have lower start-up and administrative costs. While businesses and trusts offer some protection against liability, this is not the case with a partnership. A partnership is not a separate entity from the partners. If the partnership incurs a liability, the partners are personally liable. In addition, a partner may be liable for debts incurred by another partner on behalf of the company. v) Capital contribution: capital contribution to be made by each partner and interest on this capital to be paid to the partners vi) subscriptions of the partner: policy concerning the drawings of the company, which are authorized to each partner, and the interest, if any, to be paid by the partner iii) distribution of the result: Ratio of the distribution of the profits and losses of the company among the partners iv) Salary and commission: details of the salary and, if applicable, the commission to be paid to the partners i) Company affairs: transactions carried out by the partners of the company Other names for the document: articles of association, business partnership agreement, creation of a partnership contract, formation of a partnership contract, General partnership agreement..

.