Partnerships can be formed through a contractual agreement without needing to be in writing. Partnerships can also be registered by filing an application with the Registrar of Firms, which defines the terms of the partnership in a deed. Key contents of a partnership deed include the name of the firm, capital contributions, profit sharing ratios, and procedures for changes. While registration is not required, it allows partners to enforce claims against each other and third parties, while non-registration limits these enforcement abilities.

1. FORMATION OF
PARTNERSHIP

2.  Partnership Act prescribes no mode of
forming a partnership.
 It is formed through a contractual relation
between two or more persons, mutual trust
and good faith.
 The act does not require the agreement to be
in writing.

3.  In the absence of such an agreement, the
rights and duties of partners are determined
by the Partnership Act, 1932

4. PARTNERSHIP DEED

5. . Document containing terms & conditions
of a partnership
 It is an agreement in writing signed by all
the partners, duly stamped and registered.
 It defines rights, duties and obligations of
partners and governs relations among them
in the conduct of business affairs of the firm
firm.

6.  The deed must not contain any term, which
is contrary to the provisions of the
partnership act.

7. CONTENTS :
 Name of the firm & nature of business.
 The principal place of business.
 Names and addresses of partners.
 Amount of capital to be contributed by each
partner.
 Amount, which can be drawn by each
partner.
 Profit sharing ratio.
 Rate of interest, if any on capital and
drawings.

8.  Procedure for admission, retirement, etc of
a partner.
 Procedure for maintaining accounts and
getting them audited.
 Loans and advances by partners and rate of
interest payable on them.

9. REGISTRATION OF
PARTNERSHIP

10.  Registration of partnership is not compulsory
under law.
 The act provides that, if the partners so desire
they may register the firm, with the
Registrar of Firms of the state in which the
principal office of the firm is situated.

11. PROCEDURE

12.  Filing of Application Form
 Name of the firm
 Principal place of business
 Other places of firm’s business
 Names & addresses of partners
 Date of joining by each partner
 Duration of partnership (if any)

13.  Signing of application form and verification
by each partner
 Submission of the Form along with
Registration fee to the Registrar
 Scrutiny by the Registrar, verifying that all
legal formalities have been complied with
 Entry in the Register of firms

14.  Issue of Certificate of Registration by the
Registrar
 Any change in the information
submitted at the time of
registration , should be conveyed
to the Registrar.

15. CONSEQUENCES OF
NON-REGISTRATION

16. LIMITATIONS :
 Cannot enforce claims against a third party
 Cannot file suit against any of the partners
 Partners cannot file suit against the firm
 A partner cannot file a suit against other
partners

17. Following rights shall remain in force :
 Sue for dissolution of the firm or for accounts
of a dissolved firm or power to realise the
property of a dissolved firm
 Power of an official assignee, to realise the
property of an insolvent partner
 Right of a third party to sue the firm or its
partners

18.  Right to sue a third party for infringement
of a patent right