A Partnership Deed is a legal document that outlines the terms and conditions of a partnership agreement between two or more individuals or entities. It forms the basis of any partnership business, clearly defining the roles, responsibilities, profit-sharing ratios, dispute resolution mechanisms, and other critical aspects of the business relationship. At Ad Deals Legal Services, we assist businesses in drafting a well-structured and legally sound partnership deed that meets the legal requirements and protects the interests of all partners involved.

Here’s how we help in creating a Partnership Deed:

1. Understanding Your Business Needs
Before drafting the partnership deed, our team of legal experts will consult with you to understand:

The nature of your business: Whether it is a small business, a large enterprise, or a specific sector (e.g., manufacturing, services).
The roles and responsibilities of each partner: This includes who will manage daily operations and who will contribute capital.
The profit-sharing ratio: How profits and losses will be divided among the partners.
Other preferences: Any other specific terms or provisions you wish to include, such as exit strategies, dispute resolution processes, and decision-making mechanisms.
2. Preparing the Partnership Deed
After we collect all the information, we start drafting the partnership deed. The deed generally contains the following important aspects:
Name of the Partnership: The official name under which the partnership will operate.
Business Purpose: A clear description of the business activities the partnership will engage in.
Capital Contribution: Details of the initial capital contribution by each partner, as well as any future contributions.
Profit and Loss Sharing Ratio: The percentage of profit and loss each partner will bear.
Duration of Partnership: Whether the partnership is for a fixed term or indefinite.
Rights and Obligations of the Partners: A definition of what constitutes rights, duties, and responsibilities for every partner.
Management and Control: Who will manage day-to-day activities and who makes decisions.
Dispute Settlement: How to settle disagreements and whether it should go through arbitration or mediation.
Term of Termination or Exiting Clause: How the partnership is to be terminated and how a partner is to leave the business.
Indemnity and Liability: How liabilities and responsibilities would be shared in case of any debts or claims against the business.
Non-compete and Confidentiality: Provisions to prevent partners from competing with the business or disclosing confidential information.
3. Legal Compliance and Structure
Our team ensures that the partnership deed is in compliance with the Indian Partnership Act, 1932, which governs partnership firms in India. The deed is structured in a way that ensures that the business operates legally, avoiding any potential conflicts or legal issues down the line.

4. Registration of the Partnership Deed
While Partnership Registration is optional under Indian law, it is advisable to get the partnership registered with the local Registrar of Firms for getting legal recognition. We assist you in:

Preparation and filing the partnership deed with the authorities concerned.
Helping the partners complete the formalities for registration.
Official recognition of the government will help in securing contracts, applying for loans, and also protect the legal interests of the business.
5. Signing the Deed
After drafting of the deed and completion of the registration process, we help in the execution of the deed:
Signatures : All partners will sign in front of a witness.
Notarization: In case that is needed, we help obtain the partnership deed notarized for added credibility.
Retaining Documents: We assist in ensuring that all the documents related to the deed of partnership are held in a safe place for use later.
6. Long-Term Legal Service
After our team drafts the partnership deed, we provide long-term assistance on the legalities of your partnership, like:

Modification in the Deed: We will help modify the deed and keep it current in case there is a change in terms, like a change in profit-sharing ratios, inclusion or removal of a partner, etc.
Resolution of Disputes: We can guide you on how disputes between partners are efficiently resolved using the legal procedures such as mediation and arbitration.
Compliance Support: we help you be on track with the governing laws and regulations at all times.