Partnership Deed Format Generator

By the MuftTools.in teamUpdated October 2026How we checkSources: Indian Partnership Act, 1932 (India Code)

A partnership deed draft for your firm, in minutes

When two or more people start a business together as a partnership firm, the partnership deed is the document that records what they agreed: the firm's name and business, who put in how much capital, how profits and losses are shared, who runs the business, how the bank account is operated, and what happens when a partner leaves or dies. Banks ask for it to open the firm's current account, the GST and income-tax registrations ask for it, and the Registrar of Firms needs it if you register.

This generator builds a complete deed draft from a short form. It handles 2 to 5 partners, checks that the profit shares add up to 100%, adds a schedule table of capital and shares, numbers the clauses and renumbers them when you leave optional ones out. It writes in English or Hindi, leaves space at the top for stamp paper, and downloads as PDF or Word. Nothing you type leaves your browser.

How to use the partnership deed generator

1. Choose the language: English or हिन्दी.
2. Firm. Choose the number of partners, then enter the firm name, the nature of business, the principal place of business and any branches, the start date, and whether the partnership is "at will" or for a fixed number of years.
3. Partners. For each partner: full name, father's or husband's name, age, address, PAN (optional), capital and profit share, and whether they are a working partner. The last partner's share fills in so the total is 100%; change any share and the check above the money section updates.
4. Capital, pay and bank. Interest on capital (0 to 12% a year), remuneration to working partners, drawings, and how the bank account is operated: by any one partner, any two jointly or all jointly.
5. Rules. Keep or drop the GST clause and the no-competing-business clause, set the notice period for retirement, choose what happens on a partner's death, and choose arbitration or local courts for disputes. Add your own clauses, one per line.
6. Witnesses and signing. Add two witnesses (or leave blank lines to fill by hand), the place and date of signing, and how much space to leave for the stamp paper.
7. Download. Save the PDF or Word file, print it on stamp paper, and have every partner sign.

Clauses the deed covers

Clause	What it says
Name, business, place	The firm name, what it does and where; branches may be opened by consent
Commencement and duration	The start date; partnership at will or for a fixed term
Capital	Total capital in figures and words, each partner's share in the schedule
Interest on capital	Optional, at the rate you choose, up to 12% a year
Profit and loss	Shared in the ratio in the schedule, after interest and remuneration
Working partners	Who runs the business and how their remuneration is fixed
Drawings and bank	Personal withdrawals and who signs for the bank account
Books and accounts	Accounting year 1 April to 31 March, books open to all partners, audit where the law requires
Admission, retirement, death	New partners by consent, notice to retire, and what happens if a partner dies
Disputes and the Act	Arbitration or local courts; the Indian Partnership Act, 1932 applies to anything not covered

Registration, stamp paper and signing

Under the Indian Partnership Act, 1932, a firm does not have to be registered. Registration is done by filing a statement with the Registrar of Firms of the area where the firm has a place of business (section 58). It is still worth doing, because section 69 stops an unregistered firm from filing a suit to enforce a right arising from a contract, and stops a partner of an unregistered firm from suing the firm or the other partners to enforce such a right. Registrars are appointed by each state, so the forms, fees and online process differ from state to state, and some states have amended the Act's registration provisions. Your state's Registrar of Firms or a CA can tell you what to file.

The deed is usually printed on non-judicial stamp paper or with an e-stamp certificate. The stamp duty is fixed by your state's stamp law and often depends on the capital, so check the current rate before you buy the paper. Choose how much blank space to leave at the top of page 1 for the printed stamp, or "None" if the e-stamp certificate is a separate sheet.

Every partner should sign at the end (many sign each page too), with two witnesses. Many firms also get the deed notarised. Keep the original safe and give each partner a copy.

Interest, remuneration and tax

A firm is taxed separately from its partners. Income-tax law allows the firm to deduct interest on partners' capital only up to 12% a year (simple interest), and remuneration only to working partners within limits worked out on the firm's book profit. Both deductions depend on the deed authorising them and stating how they are worked out. That is why the deed names the working partners and states the interest rate. The exact limits change from time to time, so ask your CA before you fix the numbers.

Tips and common mistakes

• Shares must add up. The profit shares must total 100%. Capital shares and profit shares don't have to be the same: a partner who puts in less money but runs the business may take a bigger share of profit.
• Two partners and a death. A partnership needs at least two partners. In a two-partner firm, "the others continue" doesn't work on its own, so the deed defaults to letting a legal heir join with consent.
• Use full legal names and current addresses, the same as on the partners' PAN and Aadhaar, so banks and the GST portal accept the deed.
• Write the business broadly enough. "Trading in electrical goods and allied products" leaves room to grow without a new deed.
• Change it in writing. When partners join or leave or shares change, sign a supplementary deed and update your registration, bank and GST records.

Need other documents for the new firm? Make a rubber stamp design, visiting cards and GST invoices, all free and in your browser.

Popular shortcuts

• Partnership deed format in Hindi