A partnership deed is a legal document that is incorporated under the Partnership Act of 1932 and has to be registered under the Indian Registration Act,1908. It lays out the terms and conditions between two or more people who wish to become partners in a business. A partnership deed helps in the smooth running of the business. The constitution of business through a partnership is chosen by many entrepreneurs.

A partnership deed is an essential element that helps the people involved to get a better understanding of various aspects of the business like profit or loss sharing, the salary drawn by each of the partners, interest on capital, other drawings etc. Also, curating various points that indicate the operational functioning of the firm. Listing out these points, that is expected to happen in the business over the long run, ensures that there will not be any discrepancies or misunderstandings between the partners.

Another major factor that has to be kept in mind while registering the partnership deed, is the question of the stamp duty payable. The stamp duty payable on the partnership deed is mandatory under Section 46 of the Indian Stamp Act, 1899. The duty payable differs from state to state. When you want to set up a partnership business in Karnataka, the duty is calculated upon the capital. If the capital is below Rs.50,000, the stamp duty comes to around Rs.1000 and if the capital is more than Rs.50,000, the stamp duty is Rs.2000.

Profito Global understands the dynamics of your business and helps you draft the partnership deed that seems apt for your entity. We also take immense care while drafting your partnership deed so that it abides by all the rules laid out in the Income Tax Act, 1961, Partnership Act, 1932 and the other rules respectively laid out by the Government of India. As and when the needed data and documents are provided to us, we start the work on drafting the partnership agreement for your business enterprise.

The major criterion of services based on the partnership deed that will be provided by Profito Global is the drafting of a new partnership deed and the modification of the existing deed i.e., alteration of clauses, the addition of clauses etc.