Is Partnership Deed Required to Be Registered?
Starting a business in partnership offers flexibility and shared responsibility. In India, partnerships are governed by the Indian Partnership Act, 1932 . When two or more persons come together to carry out a business and share its profits, a partnership firm is formed. While creating a Partnership Deed is essential, the question that often arises is, “Is it mandatory to register a partnership deed?” In this blog, we’ll discuss what a partnership deed is, the legal requirements surrounding its registration, and the benefits of registering a partnership firm. What is a Partnership Deed? A Partnership Deed is a written agreement between the partners of a firm that outlines the terms and conditions of the partnership. It typically includes: Name and address of the firm and partners Nature of business Capital contribution by each partner Profit and loss sharing ratio Duties and responsibilities of each partner Provisions for admission, retirement, or death of a partner Dispute resolutio...