DEED OF PARTNERSHIP
THIS INDENTURE made at PLACE on this DATE day of
MONTH, in the year …….;
B E T W E E N
1.
NAME OF THE PARTNER, aged about ……
years, son of FATHER’S NAME, holding
Certificate of Practice issued by The Institute of Chartered Accountants of
India residing at ADDRESS, hereinafter
referred to as the “Party of the First Part”,
2.
NAME OF THE PARTNER, aged about ……
years, son of FATHER’S NAME, holding
Certificate of Practice issued by The Institute of Chartered Accountants of
India residing at ADDRESS
hereinafter referred to as the “Party of the Second Part”,
THAT ALL
the parties hereto being the parties of the First Part and Second Part have
agreed to practice as Chartered Accountants in Partnership with each other on
the terms and conditions contained herein, and the parties hereto have desired
to put in writing the terms and conditions of their said partnership.
NOW
THIS INDENTURE WITNESSETH and it is hereby covenanted and
finalised by and between the parties as follows:
1.
The Partnership shall come into effect from DATE and
shall be for an indefinite period unless it is determined.
2.
The Partnership profession shall be carried
on under the name and style of NAME OF THE FIRM
presently from ADDRESS as
the Head Office of the Firm and/or at any other place/s as will be decided
mutually by the parties hereto and/or to open its branches at any other place
or places and/or form associateship with any other Chartered Accountant/s or
other firm of Chartered Accountants subject to the approval of the Council of
ICAI.
3.
The profession of Partnership shall be all
those activities that can be carried on by a Chartered Accountant within the
meaning of The Chartered Accountants Act, 1949.
4.
The Net Profit or Loss of the Partnership
profession as arrived at after adjustment of salary, bonus, commission and
interest to the partners, shall be divided between the parties as follows:
a) NAME OF THE
PARTNER : RATIO
b) NAME OF THE
PARTNER : RATIO
5. The partners shall be entitled to increase
or reduce the above profit sharing ratio and may agree to pay remuneration to
the partner or partners. The parties
hereto may also agree to revise the mode of calculating the remuneration and
decide to pay salary and grant the benefit of house rent allowance, medical
expenses, accident and/or Life Insurance Policy Premium, Provident fund,
gratuity, bonus, commission and/or other benefits to the above and/or the other
partner or partners either on monthly or yearly basis as they may mutually
agree upon.
6. The partners shall be entitled to modify
the above terms relating to remuneration, interest etc., payable to the
partners by executing a supplementary deed, and any such deed when executed
shall have effect, unless otherwise provided, from the first day of the
accounting period in which such supplementary deed is executed and the same
shall form part of this deed of partnership.
7. The
accounting year of the Partnership shall be the year ending on the last day of
March every year. The Final Accounts as will be drawn up at the close of the
year shall be countersigned by all the parties hereto as a token of acceptance.
8. Bank
Account or Accounts shall be opened in the name of the Partnership Firm. All
account/s shall be operated upon by either of the parties. All moneys or negotiable
instruments received from and on behalf and/or on account of the Partnership
profession shall be paid/deposited into such banking account or accounts in the
name of the Partnership Firm.
9. Proper
books of accounts shall be maintained by the Parties hereto in which all the
transactions relating to the partnership business shall be entered into and
recorded and such books together with all documents, letters, vouchers of and
belonging to the partnership shall be kept at the place of business of the partnership
or at such other place or places as the parties hereto may from time to time
mutually decide in writing. Each partner shall have full and free right and
liberty to inspect such books of accounts, documents, letters, vouchers and of
making extracts or copies therefrom.
10. The
partners may contribute capital as and when considered necessary and expedient
for the purpose of carrying on the business/profession and the same shall carry
interest at 12% (Twelve Percent) per annum or such other rate as may mutually
be agreed upon by the parties hereto from time to time. The partners hereto
shall be entitled to draw out in advance, against their drawing accounts of
such sums from time to time as may be mutually agreed upon and on taking
account for the year, the excess, if any, drawn by any partner over his share
of the profits shall be refunded to the firm within a period of three months or
be treated as loan to him which shall carry interest at 12% (Twelve Percent)
per annum or any other rate mutually agreed upon.
11. That
all the parties hereof shall be the working partners and take active part in
the day-to-day conduct of the business of the firm.
12. Party
of the First Part shall be entitled to a salary of Rs. ……/-
per month and the party of the Second Part shall be entitled to a salary of Rs. ……/- per month. The parties hereof shall also be
entitled to bonus and commission at a rate as will be mutually determined and
fixed by the parties hereof at the close of the year. Besides, the parties
hereof will be entitled also to draw interest on capital at a percentage not
exceeding 12% per annum. That in no case the aggregate salary, bonus and
commission per year shall exceed the limit as fixed by the Income Tax Act, 1961
as amended from time to time. That the quantum of salary can be increased or
reduced to a sum as will mutually be decided by the parties hereof. Any
drawings by the parties hereof as salary, bonus or commission in excess of the
permissible limit as fixed by the Income Tax Act, 1961, from time to time, such
amount/s shall be refunded to and/adjusted in the accounts at the close of the
year and will be debited to their respective capital account/s as will be
mutually be agreed by the partners, the parties hereof.
13. THAT
THE PARTNERSHIP shall be AT WILL.
14. IF
ANY partner is desirous of retiring from the said Partnership he shall be
entitled to do so by giving Three months’ notice in writing to the other
Partners of his intention to retire and on expiration of one month from the
date of such notice, he shall cease to be a partner and his interest in the
Partnership shall cease on and from that date. Immediately on receipt of the
aforesaid notice his accounts including Goodwill shall be drawn upon and
settled forthwith.
15. The
retiring partner will handover the property of the Partnership under his
possession and/or any other books/documents etc. belonging to the Partnership
or any of its clients to the remaining Partners upon due receipt forthwith and
the Partnership Firm shall also issue to the retiring Partner a “no claim
receipt” to this effect. On retirement, a retiring Partner shall not in any way
interfere with the business of the Partnership.
16. The
death, insolvency or lunacy of any partner shall automatically dissolve the
Partnership.
17. Each
partner shall be entitled to draw against his share of profit the amount agreed
to between the partners.
18. The
parties hereto may admit a new partner or partners only with the consent of all
the existing partners in writing and on such terms and conditions as may be
mutually agreed upon subject to the approval of the Council of ICAI.
19. No
partner or the Partnership firm shall be liable and/or responsible for the
personal debt and/or liabilities of any other partner or partners.
20. Each
Partner shall :
20.1 Punctually pay his personal and separate debts and indemnify the
other partners and the assets of the partnership against the same and pay all
expenses on account thereof;
20.2 Forthwith pay all moneys, cheques, negotiable
instruments received by him on account of the Partnership into the Partnership
Bank Account or Accounts;
20.3 Be just and faithful to others and at all
times give to each other full information and truthful explanations of all
transactions relating to the Partnership business;
20.4 At all times give to the others a just and
faithful account of the same and also upon every reasonable request furnish a
full and correct explanation thereof;
20.5 Afford every assistance and co-operation in
his power and to use his best skill and endeavour in the conduct, promotion and
execution of the Partnership profession for their mutual advantage and benefit;
and,
20.6 No partner shall divulge any information of
the partnership or of its clients to any outsiders.
21. In
respect of matters not specifically provided herein, the Partnership shall be
governed by the provisions of the Indian Partnership Act, 1932.
22. No
partner shall, without the previous consent of all the existing Partners in
writing, become a partner of any other firm of Chartered Accountants and/or any
other firm and/or person or persons carrying on a similar and/or competitive
business/profession.
23. Any
dispute or difference arising between the parties hereto in relation to the
affairs of the Partnership Firm or in regard to construction of any clause
hereof in relation to the rights, duties and obligations of the parties hereto
shall be referred to the arbitration to an arbitrator who shall enter upon the
reference and decide the matter and award given by such arbitrator shall be
final and binding on the parties hereto subject to the provisions of the
Arbitration and Conciliation Act 1996.
24. It
is hereby declared that all the partners are fully engaged in the practice of
profession of Chartered Accountancy and engaged in no other occupation/salaried
employment.
IN
WITNESSETH WHEREOF the parties to the above presents have hereunto set and
subscribed their respective signatures and seals on the day, month and year
first hereinabove written.
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SIGNED, SEALED & DELIVERED by the
within named Party
of the First Part
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NAME OF THE PARTNER
Sign …………………………………
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PHOTO
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SIGNED, SEALED & DELIVERED by the
within named Party of the Second Part
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NAME OF THE PARTNER
Sign …………………………………
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PHOTO
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In the presence of: (WITNESS)
1)……………………………………
2)……………………………………
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