If you are co-owning a business with\none or more people, then you have not formed the business as a private limited\nor corporative society or any other business form; your business is a\npartnership. In partnership, two or more people come together to do business,\ndivide their responsibilities and share the profit and losses that the business\nhas generated. In this blog, we will discuss provisions of the Partnership\nDeed.<\/p>\n\n\n\n
The term \u2018partnership\u2019 has been\nelaborated under Section 4<\/em> of the\nIndian Partnership Act of 1932. As per the act, \u201cA partnership is a relationship between the\npersons<\/em> who have agreed to share the\nprofits and losses of a business carried on by all the partners<\/em>\/any one of them.”<\/em> <\/p>\n\n\n\n Along with defining the term\npartnership, the act also states that, all the persons who have entered into\nthe partnership will be called as partners of the firm. There are different\ntypes of partners as defined under the Act of 1932. They are as follows:<\/p>\n\n\n\n For the smooth functioning of a\npartnership, a firm requires a clear understanding between its partners\nregarding various aspects of governing the partnership firm. All these aspects\nare mentioned under the partnership deed, which is signed by all the partners\nand the two witnesses. A written Partnership Deed plays a very important role\nfor all the partners of the firm, as it helps to settle down any possible\ndispute in the future with regard to the terms of the partnership. Also, it\nhelps to define the roles of all the partners with their duties and powers. <\/p>\n\n\n\n