How to draft a Partnership Deed (Tamil)

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HOW TO DRAFT A PARTNERSHIP DEED

Next to Proprietorship, the partnership is the most preferred entity by many of the start-ups all around the world. This is because of one simple reason, Easy to Form. By simply signing the partnership Deed, the Partnership Business will come into live. A partnership deed is a base for every partnership business. At the same time, the simple mistakes that you make in the partnership deed will affect the life of the business.
What is Partnership Business:

A partnership firm is where two or more people join together to do business with a profit motive. All the Partners invest in the business, share the work and responsibility, and divides the Profit and Loss.

What are the advantages of Partnership Business

1. Easy and simple to form a Partnership Business
2. No much Legal Compliances
3. Easy winding up process
Two Types of Partnerships
1. Partnership at Will: The agreement for Partnership At Will is formed for carrying on general business and it does not specify the time for termination of partnership or duration of the partnership. It can be terminated at any time by mutual agreement.
2. Particular Partnership: A. Particular Partnership is a partnership formed for a single transaction and it would last as long as the business is not completed.
How to form a Partnership Firm

It involves a threefold process which is clearly stated below
• Prepare a Partnership agreement
• Print it in Stamp Paper
• Sign by all the partners before the witnesses.
Why a Partnership fails

Lack of trust among the partners is the primary reason for every partnership to fail, the next is unspecific terms between the partners which lead to confusion. The best solution to overcome all these problems is just signing a proper legal agreement.

Elements of a Partnership Deed
1. Details of Partners
a. Name of the Partners
b. Residential Address
c. Father's Name and
d. Age
2. Name of the business
a. Firm Name
b. Office address
3. The object of the Business
4. Date of Commencement
5. Duration of the partnership
6. Capital for the business
7. Investment contribution from each partner
8. Profit and loss sharing
9. Managing Partner
10. Arbitration

Have a crystal clear unambiguous Partnership deed, which will surely lead to your great success.