A partnership is one of the oldest business structures in India and is governed by the Indian Partnership Act, 1932. A partnership firm does not have an independent status apart from the partners constituting it. A partnership is not a legal entity; it has a limited identity for the purpose of tax laws. Any two people who are capable of entering into a contract can start a partnership business under an agreement called a partnership deed. The partnership agreement can be oral or written. It is not mandatory to register a partnership deed, but it is advisable to do so for evidential purposes since a firm cannot file a suit against a third party if it is unregistered.

Partnership is one of the most common form of business available. In order to fix terms and conditions among partners, well drafted partnership deed is a must and this partnership deed cover all provision required for a partnership. Since, law does not mandate registration of partnership, after creation of deed you can use the documents executing in necessary stamp paper applicable in each state.

This partnership mainly covers below points.

• Partners
• Name of the firm
• Address of firm
• Capital
• Interest on capital and loan
• Remuneration clause within Income tax act
• Dispute resolution