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Empowering Entrepreneurs, Developing Startups and Upgrading Skills to make an Impactful Ecosystem since 1995.

What is #Partnership Deed Drafting?

one to one Business Counselling

What is #Partnership Deed Drafting?

If one wishes to understand the partnership deed, he or she must first know how the partnership deed is formed. When 2 or more people wish to set up a new business and share in the profits and losses, they form a partnership. This formal agreement is referred to as a 'Partnership Deed.' Additionally, it may be referred to as a 'Partnership Agreement.' And when such a business registers under its own name, it is referred to as a 'Partnership Firm.'

A proper deed provides legal responsibility amongst the firm's partners. It is not, however, necessary to be registered. As a result, you can also manage an unregistered partnership firm. It is a legal requirement for all businesses to register with the IRS and obtain a PAN card. Following the receipt of a PAN Card, the Partnership Firm is needed to open a current account in its name and conduct all of its business through this account.

why a partnership deed is
#Important

1 It regulates the partner's rights, obligations, and responsibilities.
2 Because all of the terms and conditions of the partnership have been written out in advance in the document, it helps to avoid any confusion between the partners.
3 Any dispute between the partners can be easily resolved by referring to the partnership agreement.
4 It clears up any misunderstanding about how profit and loss should be shared between partners.
5 It specifies who is in charge of which tasks. The roles of each partner can be defined.
6 A partnership deed might also include clauses that define what partners should be paid in terms of pay (salary). Working partners are typically compensated. However, interest is paid to all partners who have contributed money to the company.
why a partnership deed is #Important

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Documents Required

Along with the application, you must also send the following documents:

Partnership Registration Application.

Affidavit specimen that has been properly filled out

A True Copy of the Partnership Deed that has been certified

Proof of ownership or a rental/lease agreement for the principal location of business.

Enquiry Form

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