A partnership deed is an agreement in writing signed by all the partners duly stamped and registered.
It defines the rights, duties and obligations of partners and governs regulations among them in the conduct of business affairs of the firm. It is not a public document. A partnership deed usually contains the following clauses:
1. Name of the firm
2. Nature of the firm’s business
3. The principal place of business
4. Duration of partnership, if any
5. Names and addresses of partners.
6. Amount of capital to be contributed by each partner
7. Amount which can be withdrawn by each partner
8. The profit-sharing ratio
9. Rate of interest, if any, on capital and drawings
10. Amount of salary or commission payable to partners
11. Allocation of work among partners
12. Mode of valuation of goodwill
13. Procedure for admission, retirement, etc, of a partner
14. Procedure for maintaining accounts and getting them audited.
15. Procedure to be followed in the event of dissolution of the firm and settlement of accounts
16. Arbitration clause in case of disputes among partners
17. Loans and advances by partners and rate of interest payable on them.