Types of Partnership Deed

Table Of Content

• What are the Different Types of Partnership?
• How to know which Partnership Deed Type suits me?
• Can Partnership Deeds be made Online?
• How to Create Partnership Deeds Online?
• What Documents are Required to Create a Partnership Deed?
• Do I need Stamp Paper for Partnership Deeds?
• What should be the Partnership Deed Stamp Paper Value?
• Conclusion

A Partnership Deed sets out how partners work together on a business project and clarifies profit sharing, management duties and liability issues. The nature of partnership such as general, limited, LLP or joint venture determines what role and contribution is stated in the deed. Platforms like eDrafter.in enable quick creation of Partnership Deeds since they provide the deed to meet your requirements. Relevant Documents include identity/address proofs for partners; particulars about what business; details about contributions; terms concerning distribution profits as well governance rules are indispensable when it comes to drafting processes.

What are the Different Types of Partnership?

Based on the arrangement and liability of partners, partnerships may take various forms:

1. General Partnership: The profits, losses and management responsibilities are equally shared by all partners who have unlimited liability.
2. Limited Partnership (LP): It is made up of general partners (with unlimited liability and those responsible for managing) as well as limited partners (who provide capital but whose responsibility is limited and have no authority over management).
3. Limited Liability Partnership (LLP): In case of Limited Liability Partnership, the partners are like shareholders in a corporation since they have debts for which they stand to lose only their investment in the business but still participate in its management.
4. Joint Venture: Such a partnership brings together two or more people to work on an agreed upon specific project and share its risks and rewards.

How to know which Partnership Deed Type suits me?

Your choice of partnership agreement will depend on factors like your financial objectives, risk tolerance, and the level of involvement you want to have. If you desire an equal share in management and are comfortable with unlimited liability, a general partnership could be the best option. 

Limited partnerships should suit passive investors who require limited liability with a distinction between general partners and limited partners. Professionals who wish to safeguard their personal equity while participating in managerial activities may choose limited liability partnerships (LLPs). 

Joint ventures are ideal for specific projects or initiatives having pre-determined time frames and roles. To make the partnership structure fit your needs and goals, it is important that you consult a Legal advisor to get the Legal advice.

Can Partnership Deeds be made Online? 

Yes, one can quickly generate Partnership Deeds online through platforms such as eDrafter.in. At eDrafter.in there is an easy-to-use website that allows users to customize various Legal Documents including Partnership Deeds. By offering templates prepared by experienced attorneys guarantees veracity as well as adherence to all the laws. However, these details are filled out online saving your time from traditional drafting hassles. Additionally, this firm gives support during the whole process which makes it easy and convenient for people or firms to have their Document.

How to Create Partnership Deeds Online?

Creating a Partnership Deed with eDrafter is simple. You just need to follow some simple steps and we will create your Partnership Deed. Here are the steps:

1. Visit our website and click on “Partnership Deed” in the “Legal Documents” section of the main menu of our website.
2. Now, you will be redirected to our Partnership Deed page. Here you need to fill the form to provide us all the required details.
3. Now, our team will draft your partnership and will share the same with you on your email id for your approval.
4. Here you can ask for changes in the draft and our team will make the changes and will share again with you for your approval.
5. Once you approve the draft, will deliver the hard copy of your Partnership Deed at your doorstep.

What Documents are Required to Create a Partnership Deed?

The following Documents are typically required when creating a Partnership Deed:

1. Identification Proof: Copies of each partner’s identification cards (like Aadhaar Card, Passport or Driving License).
2. Address Proof: Copies of address proof for every partner (utility bills or bank statements).
3. Partnership Details: Partnership details including names, addresses, and nature of business.
4. Contribution Details: Each partner should disclose contributions made to the partnership including property or money.
5. Profit Sharing: Partners should agree on how profits and losses will be distributed among them.
6. Terms and Conditions: These may include issues such as management, decision making, disputes resolution, dissolution etc.

Legal advice is essential while making your Partnership Deed to make it clear and compliant.

Do I need Stamp Paper for Partnership Deeds?

Stamp paper is common for Partnership Deeds. The amount of stamp duty generally depends on the capital contribution made by the partners and the state where the partnership has been registered. Normally, Partnership Deeds are executed on non-judicial stamp paper having proper value under Stamp Act provisions. Amount of stamp duty is calculated based on the total value of share in the firm indicated indeed. Therefore, it is important that appropriate stamp duty laws are complied with to validate enforcement of this agreement.

What should be the Partnership Deed Stamp Paper Value?

The amount of stamp duty for a Partnership Deed varies depending on the contribution made by each partner in terms of capital and the state law regarding stamp paper in which the partnership is registered. Normally, stamp duty is computed as a percentage of entire capital contribution towards partnerships mentioned in the deeds. In India, there are separate rates for every Document such as Partnership Deeds under the Indian Stamp Act of each State. It would be important to consult with a Legal practitioner in your area or registrar to find out what will be the precise value of stamp paper required so that you can comply with applicable stamp duty laws and regulations.

Conclusion

In conclusion, crafting a Partnership Deed is crucial for outlining the operational framework, liability distribution, and profit-sharing agreements among partners. Whether forming a general partnership, limited partnership, LLP, or joint venture, choosing the right type hinges on factors such as risk tolerance, financial goals, and desired level of involvement. Online platforms like eDrafter.in streamline the process by offering customizable templates and Legal guidance, simplifying the creation of Partnership Deeds. Legal expertise ensures compliance with stamp duty requirements and enhances the Document’s validity. Consulting with professionals ensures that the Partnership Deed accurately reflects the partners’ intentions, fostering clarity and stability in business collaborations.