Partnership Deed Drafting

A partnership deed that holds up

Most partnerships begin on trust and a handshake. The deed is what protects that trust when money, growth or a falling-out tests it. Adv. Bhawna Yadav and her team draft yours at a flat ₹2,000 — a fully custom document built around your firm, not a template with your names dropped in — usually within one to two working days.

The fee is fixed and agreed in writing. There is no hourly billing, nothing added later, and no upselling.

Why a proper deed matters

A partnership deed is the rulebook for how partners share money, make decisions, and part ways. When it is thin or generic, the gaps surface at the worst possible moments — when profits grow and the split is disputed, when one partner wants out, or when a partner dies or becomes insolvent. A deed drafted with care turns each of those moments from a fight into a clause.

It also has a legal consequence many founders miss: under the Indian Partnership Act, 1932, an unregistered firm cannot sue a third party to enforce a contract. The deed is the foundation for registering the firm and unlocking that ability.

What a good partnership deed covers

We draft for the situations that actually cause disputes, not just the basics:

Capital and profit-sharing

How much each partner contributes, how profits and losses are shared, and how drawings and interest on capital are treated — set out precisely, so there is no argument at the end of the year.

Decision rights and signing authority

Who can bind the firm, what decisions need unanimous consent, and how deadlocks are broken. This is the clause that keeps a two-person firm from freezing when the partners disagree.

Admission, retirement and exit

How a new partner joins, how an existing partner leaves, and what happens to their share — including on death, retirement or insolvency. A clear exit mechanism is what lets a partnership survive a change in its people.

Indemnity, IP and confidentiality

Who owns the intellectual property the firm creates, how confidential information is handled, and how partners are indemnified for acts done in good faith for the firm.

Dispute resolution

How disagreements are resolved — including a mediation or arbitration clause — so a dispute does not default straight to a courtroom.

Registered or unregistered

A partnership can operate without being registered, but registration is strongly advisable. The single most important reason is the one above: an unregistered firm cannot enforce its contracts against outsiders in court. Registration is done with the Registrar of Firms in the state where the firm is set up; we draft the deed and give you clear guidance on registering it, so you are not left guessing about the local step.

Partnership or LLP — choosing the right vehicle

This is worth a moment before you commit. A general partnership is simple and quick, but every partner is personally liable, without limit, for the firm's debts — your personal assets are exposed. An LLP gives you almost the same flexibility with the partners' liability capped at their contribution, for only modestly more compliance. Many founders, once they understand the liability difference, choose an LLP. We will tell you honestly which fits your situation, and if an LLP is the better answer we will say so rather than simply selling you a deed.

What you get

• A consultation to map contributions, profit-sharing, decision rights, signing authority and exits.
• A fully custom deed drafted for your firm, in editable Word and PDF.
• One round of revisions, so the final document reflects exactly what you agreed.
• An execution checklist — who signs, who witnesses, and how — so the deed is valid the day it is signed.
• Clear guidance on registering the firm, if you choose to.

Why clients choose us for a partnership deed

A partnership deed is cheap to draft well and expensive to draft badly — the cost of a weak deed shows up years later in a dispute that a good clause would have prevented. We draft yours properly, for a flat ₹2,000, with a named advocate and her team, in English or Hindi, and with honest advice on whether a partnership or an LLP is the right structure. There is no upselling.

Situations we draft for

A good deed anticipates the moments that test a partnership. We routinely draft for two partners going in fifty-fifty who need a clean deadlock mechanism; for families formalising a business they have run informally for years; for working partners and investing partners who contribute differently and want their roles and returns set out separately; and for firms admitting a new partner who needs to be slotted into the profit-share and decision structure without rewriting everything. Whatever your situation, the deed is drafted around it rather than forced into a template — and if it later needs amending as the firm grows, a properly drafted original makes that change simple.

Updating a deed as your firm changes

Partnerships evolve — a partner leaves, a new one joins, the profit ratio shifts, the capital changes. A well-drafted deed contemplates these changes and sets out how they are made, so an amendment is a short supplementary document rather than a fresh negotiation. If you already have a deed that is thin or silent on these points, we can draft a clean replacement that closes the gaps before they cause a dispute.

The legal basis

Partnerships in India are governed by the Indian Partnership Act, 1932 — Section 4 (definition), Section 11 (the powers a deed may confer), Section 58 (registration) and Section 69 (the effect of not registering).