What is the Importance of Partnership Deed for a Business?

In the bygone days, when transacting business was much easier, people were involved in the business by just settling to make a trade and honored their words! But today, we have seen a long history of Deal-Breaking, complications initiated due to this, and lawsuits that have taken place all around them.

It is why companies or professionals these days prefer to make Legal contracts before signing a business deal. Hence, the importance of Partnership Deed has grown to the sky-high over the past few years.  

What is Partnership Deed? 

A Partnership Deed is a written form of a legal agreement between the partners of the firm which outlines the terms and conditions of the partnership between the partners.

It includes all the rights, liabilities, roles of each partner, and the Govt. regulations to help in a clear understanding of the responsibilities of each partner ensuring the smooth functioning of the firm.

Importance of partnership deed:

Having a Partnership Deed is not mandatory or compulsory by the Companies Act, 2013 in India, but due to numerous reasons a Partnership Deed is important:

• It regulates the rights, duties, responsibilities, and liabilities of each partner being involved with the business.
• It helps to avoid any misunderstanding amongst the partners because of the simple operational functions.
• Any dispute amongst the partners may be settled easily.
• When the Deed is written, it is turned into a permanent document and it is easy to carry and use whenever required.
• Partnership Deed can solve different difficulties like disorders, argumentation and so many other issues.
• If a Deed is written then it can be presented to the bank, Govt. authorities, and third parties by the demand of time.

If a Partnership Deed is not transcribed or written, no legal benefit could be privileged from it. Hence, it is always the best way to have a written document instead of oral agreements to avail the benefits from the same.

Documents required for Partnership Deed:

• Application for Registration of Partnership
• Affidavit Copy
• Certified Original Copy of the Partnership Deed
• Evidence of the business location

How can we help?

The recommended CA panel of Online Legal India™ delivers the essential guidance in any instance related to the Partnership Deed at an unbeatable price in the country.
Not only by Filing the Form as instructed by the Ministry of Corporate Affairs (MCA), the experts will be at your side till all the important parts of the Partnership Deed get completed.

Already blessed with 120000+ happy clients from every corner of India, we are looking for facilitating more citizens with not only Partnership Deed matters, but with Bookkeeping, Tax Filing, Online Accounting, and any other business compliances through our easily accessible digital portal.