Presented To: Ms. Adeela Jabbar Presented By: M.Hashaam Roll No. : AM552381 Class : MBA (B&F) 3rd Semester Allama Iqbal Open University ASC: Punjab Computer College, Garhi shao LHR.

2. TOPIC:
FORMATION OF
PARTNERSHIP DEED
Presented To: Ms. Adeela Jabbar
Presented By: M.Hashaam
Roll No. : AM552381
Class : MBA (B&F) 3rd Semester
Allama Iqbal Open University
ASC: Punjab Computer College, Garhi
shao LHR.

3. ACKNOWLEDGMENT
First of all thanks of Allah who is most
beneficent and the most merciful
whose blessings are abundant and
favors are unlimited.
It is my pleasure to acknowledge the
guidance and support of my subject
Teacher: Adeela Jabbar for their
guidance.

4. AN ABSTRACT
Partnership Deed play important role
in partnership business. In the
Partnership deed relation of partners
to one another and terms and
conditions relating to partnership are
included.
Partnership Deed is written on judicial
paper of Rs.50/- in Pakistan.It is
signed by all the partners and
registered with local area registrar.

5. INTRODUCTION TO PARTNERSIHP
Definition:
According to partnership act
1932
“Partnership is the relation between
persons who have agreed to share
the profit of a business carriedon by
all or any or them acting for all”.

6. ELEMENTS IN PARTNERSHIP FIRM
ESSSENTIAL ELEMENTS OF A PARTNERSHIP FIRM:
 1) There must be a contract .
 2) Association of two are more persons .
 3) Carrying on business : includes trade,
occupation or profession. Cannot be a charitable
work or divide goods purchased among
themselves.
 4) Business must be carried on : continuity, not
future date.
 5) Sharing of profits.
 6) Mutual agency : carried on by all or acting for
others.

7. FORMATION OF PARTNERSHIP FIRM
Basic facts of partnership:
1) Mutual Confidence and Utmost Good
Faith .
2) All Essential elements of Valid Contract
is must .
3) Mutual Rights and Obligations of
Partners in form of Partnership Deed .
4) Partnership firm must be registered,
otherwise the firm will not be able to
enforce its legal remedies against
outsiders .

8. WHAT IS PARTNERSHIP DEED?
PARTNERSHIP DEED :
“ The document in writing
containing the important terms
of partnership as agreed by
the partners between
themselves”. Drafted, stamped
& signed .

9. HANDLING OF PARTNERSHIP DEED
a) It should be drafted with care and be
signed by all the partners .
b) It must be stamped according with
Pakistan stamp act .
c) Each partner should have a copy of
deed .
d) The firm should be registered and a
copy of the deed should be filled at
the time of registration with register of
firms .

10. PARTNERSHIP DEED
THE PARTNERSHIP DEED SHOULD COVER : The
contents of the partnership deed .
1) Name, name of firm, addresses of partners .
2) Nature of business, town, place carried it .
3) Date commencement of partnership .
4) Duration of partnership (may /may not ) .
5) Amount of capital by partners and method of
raising finance in future .
6) Ratio of sharing profits or loss .
7) Salaries, commission etc. if any payable to
partners .

11. PARTNERSHIP DEED (CONT….)
8) Interest on partners, partners loan and interest .
9) The method of preparing accounts and arrangement
of audit and safe custody of cash .
10) Division of tasks and responsibility i.e. the duties,
powers, and obligations .
11) Rules to be followed incase of retirement, death
and admission of partners .
12) Expulsion of partners in case of gross breach of
duties and fraud .
13) Clearly provides that the deed may provide that a
partner shall not carry on any business other than
that of the firm while he is a partner . But agreement
is restrain of trade are void .

12. CONCLUSION & RECOMMENDATION’S
I conclude that, There should be
written Partnership Deed
between the partners to run the
business.
I will recommend that,
Partnership firms should be
necessary to register with
registrar.