Partnership Deed Format
A partnership deed is a written legal document signed by two people who come together, who decide to run a business, regardless of the profit or loss suffered. Cooperative title deeds help to ensure that both parties do not contradict each other, they are in conflict with each other’s procedures. Also known as a partnership agreement, additional partnerships are registered under the Co-operatives Act, 1932. Partners can make changes to the terms of the title deed of the partners if they wish.
Why a Partnership Deed Required?
The partnership title format defines the legal opportunities for the company’s partners. Here we have listed the significance of the partnership title:
- Controls the rights, duties, and liabilities of each partner.
- It is very helpful to avoid disagreements between partners as all the terms and conditions of the partnership are specified in the title.
- In the event of any dispute between the partners, it will be easily resolved as the partnership agreement will be easily referred to.
- Confusion between partners about profit compensation and sharing losses with partners.
- Specify the role of each partner
- The partnership deed will also contain sections that specify what the income should be.
- Also, the partnership registration will qualify the company for PAN, apply for a bank loan, open a bank account in the name of the Co-operative Company, obtain GST registration or IE Code or FSSAI license on behalf of a partner company, and more.
- Therefore, it is always best to make a deed of partnership.
Making a Partnership Deed
The partnership agreement must be printed on a Non-Judicial Stamp Paper valued at Rs.100 / – or more based on the value of the property held by the co-operative. The partnership agreement is usually signed in the presence of all partners and each partner will keep the first signed document of his or her records. Once a document has been signed by a partner, the document is certified and the signed partner title is held by each partner in duplicate or triple.