Partnership - Meaning, Definition, Nature, Partnership Deed

Partnership - Meaning, Definition, Nature, Partnership Deed  

Fundamental of Partnership 

Definition Of Partnership

 As per Sec 4 of the Partnership Act 1932, ' Relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.

Nature of Partnership 

1. Agreement between two or more Persons.

2. Mutual Consent between two or more Persons.

3. Carring Some Business

4. Sharing Profits between Partners

5. Unlimited Liability

6. No Separate legal Entity

7. Numbers of Partners

  • As per Sec 464 of Companies Act 2013 100 Partners

  • As per Central Govt. priscription maximum 50 Partners

  • Minimum 2 Partners required

Partnership Deed :-

 The Document Which contains the terms of agreement between Partners is called ' Partnership Deed. '

Content Of Partnership Deed:- 

1. Name and address of the firm's and it's main Business.

2. Name and address of all Partners 

3. Amount of Capital Contributed by each Partner.

4. Accounting Period of the firm.

5. Date of Commencement

6. Rules Regarding Operation of Bank Accounts.

7. Profit and loss Sharing Ratio.

8. Rate of interest on Capital, loan, drawing etc.

9. Salary, Commission etc. If payable to any Partners.

10. Rules in case of admission, retirement and death of Partners.

11. Mode of Appointment of auditor. 

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