Partnership in India are governed by the Indian Partnership Act, 1932. Partnership is an Arrangement in which two or more partners engage and share Ownership. In Partnership all the partners share the Profit and Liabilities of the Business. In Partnership various arrangements are possible i.e whether all the partners share profit and liabilities equally or in different percent of share.

The following are the difference between the Partnership and Company-

• Number of Members – In Partnership the limited Members are involved where as in Companies are per Companies Act, 2013 the members can be involved in Private Companies can be up to 200. No Maximum Limit for Public Companies.

• Liability – In Partnership each partner has unlimited liability where as companies has a limited liability. In Partnership also, the concept of Limited Liability Partnership can be adopted by forming a Limited Liability Partnership.

• Legal Entity – A Partnership Firm has no separate Legal Entity where as company is a separate Legal Entity.

• Management of Business – In Partnership Firm all the partners take decisions in management of business where as in companies only the Board Director take the decisions.

The Partnership Form is recommended when you are carrying out the Small Business with the less amount of capital as setting cost of Partnership Firm is less where as the Company Form is recommended when the Business is large and also the capital in the business is also large.

So, as per the Nature of Business and Amount of Capital the Form can be decided.

The name of Firm plays a vital Role and the Name should be chosen in a manner that it also highlight the Nature of Business.

Partnership deed is a written legal Document stating various terms made to avoid disagreement regarding the various rules set for Partnership and needs to be executed on a relevant stamp paper.

Also read, Partnership Deed and its Content

The Steps include are-

• Draft the Deed – All the Partner have to draft the Deed providing various details like name of firm, nature of business, number of partners, capital of partnership, proportion and etc.
  

• Purchase the e-Stamp paper – Purchase the e-stamp paper of the prescribed value and print the drafted deed on e-stamp paper. Start printing the Deed below the line on the e-stamp paper and mention continued to page 2 and attach other pages of Deed giving the Page Numbers. While giving the Page Number consider the Stamp Paper Page as Page Number 1 and mark other numbers of page accordingly.

• Sign the Partnership Deed – After that, the Next Step is All the Partners involved have to Sign the Deed, Sign at all the Pages along with e-stamp paper stating that the Partners are accepting all the Terms and Conditions.
  

• Make it Attest from Notary Public OR Make it Registered – Now in this matter, It’s the choice of Partners that mutually whether they want the Deed attested from Notary Public or want to register. The Registration is not necessary however its beneficial.
  

Now, there is no Stamp Paper system left in Delhi/Karnataka. The Prevailing system of Stamp paper has been replaced by the Government in a year 2011 (in Delhi) and in a year 2007 (in Karnataka). So, Deed for Delhi and Karnataka should be made only on e-stamp paper.

The prescribed Stamp Duty for Partnership Deed in Delhi is Rs. 200/-, though after introducing  e-stamp paper no fixed denomination is left. You can make Partnership Deed on e-Stamp Paper of any amount, still it is always recommended to make it on a e-Stamp paper of Rs. 200/- or higher value to avoid any misshapen in terms of Legal Crises Later.

There are few important terms which needs to be consider mutually while drafting the Partnership Deed-

• Name and Address of all the Partners – Mention the Name and Permanent Address of all the Partners involved in a Partnership Deed.

• Name and Address of Firm – Mention the Name and Style of the Firm with the Address of the Firm.

• Nature of Business to be Carried – Mention the Nature of Business to be carried out by the Firm for Ex: Food Delivery.

• Date of Commence of Partnership – Mention the Date from which the Partnership has been commenced.

• Duration of Partnership – Mention the Duration of Partnership that whether the Partnership is for a fixed period or for limited period.

• Capital of Partnership and Contribution among the Partners  – Mention the capital of Partnership and the ratio of contribution among the partners .

• Ratio of Sharing Profit and Loss – Mention the Ratio of sharing Profit and Loss among the Partner.

• Bank Account Operation – Mention that the Bank Account of said Firm will be handle by a Single Partner or Mutually.

• Admission of New Partner – Mention the Clauses of New Partner that whether the introduce of New Partner is allowed or not, if allowed then how much sharing ratio will be of incoming partner.

• Salaries, Commissions  -Set the Salary, Commission payable to the Partner (if any).

• Method Of Preparing Accounts – Mention the Method of Preparing Account of Firm and also mention all the necessary accounting year dates.

• Division of Task and Responsibilities – Mention the Task, Responsibilities and Rights of each partner in a brief manner.

• Retirement or Death of any Partner – Mention the rules to be followed in case of retirement or death of any of the partner.

So, these are the essential terms which should be including while drafting the Partnership Deed. The Terms can also be modify as per the choice of the partners.

Here are the Steps to be Follow to Register the Partnership Deed in Delhi:

STEP 1- Draft the Partnership Deed including all the necessary Details.

STEP 2- Purchase the e-Stamp Papers as per the Capital of the Partnership Firm as per the rule set by the Sub-Registrar.

STEP 3- Take the Appointment Online from the e-sub registrar by visiting to their Online Portal.

STEP 4- Purchase the e-Stamp Paper to pay the Fees of the Sub-Registrar i.e 1% of the Capital of the Firm.

STEP 5- Visit to the Sub-Registrar Office with all the relevant Documents and e-registration Paper.

We, eDrafter also provide the Service for Registration of Documents in which we will handle all these process on your behalf to provide you full comfort of the process. To Know more, Kindly proceed to our this section – Registration of Documents.

Following are the Documents required to register Partnership Deed from Sub-Registrar –

• Original Documents with one set of Xerox Copies.

• Two Passport Size Photographs of all the partners involved.

• Original I.d Proof of all the Parties.

• e-Stamp Paper of correct value of Stamp Duty.

• e-Registration fee Receipt of Registration Fee.

• ADHAAR No. If Available.

It depends upon the Appointment as well as on the Status of Application. Usually the Registration process take 2-4 Working Days.