A Partnership Deed is the most crucial document for any partnership firm. It defines the rights, duties, profit-sharing ratios, responsibilities, and working structure among partners. Whenever changes occur in the partnership—such as admission, retirement, change in capital, or change in profit ratio—a Supplementary Partnership Deed must be executed.

This article provides clear, updated, legally accepted formats for both Partnership Deed and Supplementary Deed, suitable for registration, GST, bank account opening, PAN application, and all legal compliances.

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What is a Partnership Deed?

A Partnership Deed is a written agreement between partners of a business. It is governed by the Indian Partnership Act, 1932 and is used for:

• Registering a partnership firm
• Opening a bank account
• GST registration
• Applying for PAN
• Defining partner roles and capital
• Profit/loss sharing
• Avoiding disputes

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Standard Format of Partnership Deed (Download-Ready Format)

Below is a clean, professional, and widely accepted Partnership Deed Format that can be copied as it is.

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PARTNERSHIP DEED

This Partnership Deed is made on this ___ day of ______ 20___ at ______________.

BETWEEN

1. Mr./Ms. ______________________, S/o / D/o ____________________, aged ___ years, residing at _________________________________________ (hereinafter called the First Partner).
2. Mr./Ms. ______________________, S/o / D/o ____________________, aged ___ years, residing at _________________________________________ (hereinafter called the Second Partner).

(Additional partners may be added)

WHEREAS

The partners desire to carry on business in partnership and to record the terms and conditions in writing.

NOW THIS DEED WITNESSETH AS FOLLOWS:

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1. Name of the Firm

The name of the partnership firm shall be __________________________________.

2. Nature of Business

The firm shall carry on the business of __________________________________ and any other business mutually agreed upon by the partners.

3. Principal Place of Business

The principal place of business shall be:
__________________________________________

4. Duration

The partnership shall be a Partnership at Will.

5. Capital Contribution

Each partner shall contribute capital as follows:

Partner Name	Capital Contribution
Partner 1	₹____________________
Partner 2	₹____________________
(Modify as required)

6. Profit & Loss Sharing Ratio

Profits and losses shall be shared in the following ratio:

• Partner 1: _______%
• Partner 2: _______%

7. Bank Account

A bank account shall be opened in the name of the firm, and shall be operated by:
(Any one / jointly) as agreed by partners.

8. Books of Accounts

Proper books shall be maintained and shall be audited or reviewed annually.

9. Duties of Partners

• Work honestly and diligently
• Not engage in any competing business
• Maintain transparency in accounts

10. Withdrawal & Remuneration

Partners may withdraw amounts periodically as mutually agreed.
Remuneration/interest on capital will be as per section 40(b) of the Income Tax Act.

11. Admission, Retirement, Death

Any change in partners shall require a Supplementary Deed.

12. Dispute Resolution

Any dispute shall be resolved through arbitration under the Arbitration & Conciliation Act, 1996.

13. Miscellaneous

Partners may modify terms by executing a supplementary deed.

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IN WITNESS WHEREOF

The partners have signed this deed on the date mentioned above.

Partner 1 Signature: __________________________
Partner 2 Signature: __________________________

Witness 1: __________________________
Witness 2: __________________________

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Supplementary Partnership Deed Format (For Any Changes)

Whenever there is a:

• Admission of new partner
• Retirement of partner
• Change in profit-sharing ratio
• Change in capital contribution
• Change in business nature or address

You must execute a Supplementary Deed instead of creating a new partnership deed.

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SUPPLEMENTARY PARTNERSHIP DEED

This Supplementary Partnership Deed is executed on this ___ day of ______ 20___ at ______________.

BETWEEN

1. Existing Partners:
   • Mr./Ms. ______________________
   • Mr./Ms. ______________________
     (Add names as required)
2. New Partner (if applicable):
   • Mr./Ms. ______________________, S/o / D/o ________________, aged ___ years, residing at _________________________________.

WHEREAS

The partners had executed the original Partnership Deed dated //20___, and now mutually agree to modify certain clauses.

NOW THIS DEED STATES AS FOLLOWS:

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1. Change of Partner / Admission / Retirement

(Choose applicable)

• The following partner is admitted: ____________________
• The following partner retires: ____________________

2. Revised Profit Sharing Ratio

Effective from //____, the new ratio shall be:

• Partner A: _______%
• Partner B: _______%
• Partner C (if applicable): _______%

3. Capital Contribution (Revised)

Capital shall stand revised as:

• Partner A: ₹____________
• Partner B: ₹____________
• Partner C: ₹____________

4. Amendments

All other terms of the original deed remain unchanged.

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IN WITNESS WHEREOF

The partners have signed this supplementary deed.

Partner 1: ___________________
Partner 2: ___________________
New/Retiring Partner: ___________________

Witness 1: ___________________
Witness 2: ___________________

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When Should You Use a Supplementary Partnership Deed?

Use a supplementary deed for:

• Change in profit ratio
• Adding new partner
• Removing existing partner
• Capital modification
• Address change
• Business expansion
• Any amendment to existing clauses

This ensures legal clarity and compliance for IT, GST, banks, and ROC (if LLP).

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Documents Required for Partnership Deed

• Aadhaar of partners
• PAN of partners
• Passport-size photos
• Electricity bill / rental agreement for office
• Stamp paper (₹100–₹500 depending on state)
• Notary attestation (optional but recommended)