Partnership Agreements are be used by Partners wishing to form a partnership for doing business together. It is strongly recommended or encouraged for partnerships to have some kind of agreement among themselves, in case future disputes prove difficult to arbitrate. It is meant to promote mutual understanding and avoid mistrust. It indicates the terms on which the business corporation is founded.
Also, registration of a Partnership will make the firm eligible for obtaining PAN, applying for bank loan, opening bank account in Partnership Firm name, obtaining GST registration or IE Code or FSSAI license in partnership firm name and more.
Executing a Partnership Deed
Partnership agreement must be printed on a Non-Judicial Stamp Paper with a value of Rs.100/- or more based on the value of properties held in the partnership firm. The partnership agreement is usually signed in the presence of all the partners and each of the partners would retain a signed original for his/her records. Once the document is signed by the Partners, the document is witnessed and the signed partnership deed is held by each of the Partners is duplicate or triplicate.