Partnership Deed Generator

Two people starting a business together without a written partnership deed are relying entirely on the default rules of the Indian Partnership Act, 1932 — which assume equal profit-sharing and equal say regardless of what was actually agreed verbally, and which won't reflect any of the specific arrangements partners actually intend. A partnership deed replaces those defaults with your actual terms in writing.

This generator produces a deed for a two-partner firm covering the firm name and business address, the capital each partner contributes, the profit-and-loss sharing ratio (which the tool validates sums to 100%), duties and decision-making, banking arrangements, and the process for admitting or retiring partners and for dissolution. These are exactly the questions that cause partnership disputes when left unwritten — especially profit-sharing once the business is actually making money.

For a firm intending to operate formally (open a current bank account, take business loans, sign leases as a firm), register this deed with the Registrar of Firms in your state — registration isn't mandatory to form a valid partnership, but an unregistered firm can't sue third parties to enforce a contract, which is a serious practical limitation. Have a chartered accountant or lawyer review the capital and profit-sharing structure against your actual tax planning before finalising.