Is Konnect2Tools free?

Yes. These in-browser tools are completely free to use with no account required for core functionality.

Do my files leave my device?

Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.

Is the Partnership Deed Generator tool safe to use?

Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.

What is the difference between a registered and unregistered partnership in India?

Registered partnership: (1) Can file suit against third parties for contract enforcement; (2) Can file suit against partners for rights under the deed; (3) Provides documentary evidence of partnership existence for bank accounts, loans, licenses. Unregistered partnership: (1) Cannot sue third parties to enforce contract rights arising from the partnership's dealings; (2) Cannot sue partners to enforce partnership deed rights; (3) Third parties can still sue the unregistered firm. Registration is done at the Registrar of Firms in the state, with minimal fees (₹500-2,000). There is no deadline to register — a firm can register at any time. Given the low cost and significant practical benefits, all partnership firms should register.

How many partners can a partnership firm have in India?

Under the Companies Act 2013, the maximum number of partners in a partnership firm is: 50 for any type of business. Previously, it was 10 for banking business and 20 for other businesses under the old Companies Act 1956. The Indian Partnership Act 1932 does not specify a maximum — the Companies Act limit applies. For professional partnerships (CA, CS, cost accountants, doctors, lawyers, architects), the ICAI and respective professional body regulations may specify maximum partners under their codes of conduct. For unlimited scale partnerships, an LLP (Limited Liability Partnership) or a company structure is more appropriate.

Is a partnership firm taxed differently from other business structures?

Yes: Partnership firms are taxed at flat 30% + surcharge + cess on net profit. Partners' share of profit is exempt from personal tax (no double taxation). However, partner remuneration and interest on capital are deductible by the firm only within limits under Section 40(b). A private limited company is taxed at 25% (for turnover ≤ ₹400Cr) or 22% (for domestic companies under Section 115BAA optional regime) — lower than partnership. LLPs are taxed at 30% (same as partnerships). For high-profit businesses, the private limited company structure (22-25% tax rate) is more tax-efficient than partnership (30%), while providing better liability protection.

Can a minor be a partner in a partnership firm?

A minor cannot become a full partner in an Indian partnership firm — minors lack contractual capacity under the Indian Contract Act. However, Section 30 of the Indian Partnership Act 1932 allows a minor to be admitted to the benefits of partnership — the minor shares in profits but is not personally liable for firm debts. On attaining majority (18 years), the erstwhile minor has 6 months to elect whether to continue as a partner (accepting full rights and liabilities) or retire. If no election is made within 6 months of attaining majority, the minor is presumed to have elected to continue as a partner. Minors admitted to partnership benefits must be explicitly mentioned in the partnership deed.

Legal Document Tools

Partnership Deed Generator

Generate a simple partnership deed for two or more partners with profit-sharing ratios.

This tool provides an estimate or a starting draft. Check the assumptions and current official requirements before relying on the result. It does not replace qualified financial, legal or medical advice.

Run Partnership Deed Generator online

In-browserDocument processing runs on your device. External resources may still load.

Enable JavaScript to use the interactive tool. Read the instructions, limitations and FAQs below before starting.

A Partnership Deed (also called a Partnership Agreement) is the foundational document governing a partnership firm in India, registered under the Indian Partnership Act, 1932. While a partnership can exist without a registered deed (oral partnerships are legally valid), registration provides significant advantages: registered firms can sue partners and third parties; unregistered firms cannot sue for contract enforcement. Registration is done at the Registrar of Firms office in the state where the firm's principal office is located. The stamp duty on partnership deeds varies by state (typically ₹500-2,000).

Essential clauses in an Indian partnership deed: (1) Firm name and principal place of business; (2) Names and addresses of all partners; (3) Nature of business; (4) Capital contribution by each partner (cash, property, services); (5) Profit and loss sharing ratio (equal unless specified otherwise under the Act); (6) Partner drawings and salary (active partners may draw salary from profits); (7) Management and decision-making (unanimous or majority vote thresholds for major decisions); (8) Admission of new partners; (9) Retirement, expulsion, and death of partner procedures; (10) Dissolution — winding up procedure, asset distribution, creditor priority.

Tax implications of partnership firms in India: Partnership firms are taxed at a flat 30% on net income (plus 12% surcharge if income > ₹1Cr, plus 4% cess). Partners' share of profit from a registered partnership is exempt from personal income tax under Section 10(2A) — avoiding double taxation. However, partner's remuneration and interest on capital paid by the firm are deductible by the firm (within limits under Section 40(b): interest max 12% per annum; remuneration for working partners as per slab in Section 40(b)(v)). Partnership firms must file ITR-5 and tax audit is required if turnover exceeds ₹1Cr.

How to use this utility

Use the controls below—paste text, pick files, or adjust options as described on the tool.
Click the main action button. Processing runs in your browser on this device.
Download or copy the output. Check the processing note for any external services used by this operation.

Common use cases

Creating a partnership deed for two doctors starting a medical practice together with 50:50 profit sharing
Generating a partnership deed for a trading firm with 3 partners having unequal capital contributions
Drafting a deed for a CA firm partnership with provisions for salaried partner and commission structure
Creating a partnership deed for a family business with provisions for son joining as a new partner
Generating a dissolution clause for a 2-partner firm addressing asset distribution and liability settlement

Tips for best results

1Register the partnership deed at the Registrar of Firms — unregistered firms cannot sue for contract enforcement, a significant practical handicap
2Specify profit sharing ratio explicitly — the default under the Partnership Act (equal sharing) may not match partners' intended arrangement
3Include a 'goodwill' clause specifying how the firm's goodwill is valued and distributed on dissolution or partner exit
4Limit partner drawings to a specified monthly amount — unlimited drawings can destabilize working capital and create disputes
5Consider converting to LLP (Limited Liability Partnership) for liability protection — LLP registration provides partners personal asset protection that a regular partnership does not

Frequently asked questions

Is Konnect2Tools free?: Yes. These in-browser tools are completely free to use with no account required for core functionality.
Do my files leave my device?: Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.
Is the Partnership Deed Generator tool safe to use?: Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.
What is the difference between a registered and unregistered partnership in India?: Registered partnership: (1) Can file suit against third parties for contract enforcement; (2) Can file suit against partners for rights under the deed; (3) Provides documentary evidence of partnership existence for bank accounts, loans, licenses. Unregistered partnership: (1) Cannot sue third parties to enforce contract rights arising from the partnership's dealings; (2) Cannot sue partners to enforce partnership deed rights; (3) Third parties can still sue the unregistered firm. Registration is done at the Registrar of Firms in the state, with minimal fees (₹500-2,000). There is no deadline to register — a firm can register at any time. Given the low cost and significant practical benefits, all partnership firms should register.
How many partners can a partnership firm have in India?: Under the Companies Act 2013, the maximum number of partners in a partnership firm is: 50 for any type of business. Previously, it was 10 for banking business and 20 for other businesses under the old Companies Act 1956. The Indian Partnership Act 1932 does not specify a maximum — the Companies Act limit applies. For professional partnerships (CA, CS, cost accountants, doctors, lawyers, architects), the ICAI and respective professional body regulations may specify maximum partners under their codes of conduct. For unlimited scale partnerships, an LLP (Limited Liability Partnership) or a company structure is more appropriate.
Is a partnership firm taxed differently from other business structures?: Yes: Partnership firms are taxed at flat 30% + surcharge + cess on net profit. Partners' share of profit is exempt from personal tax (no double taxation). However, partner remuneration and interest on capital are deductible by the firm only within limits under Section 40(b). A private limited company is taxed at 25% (for turnover ≤ ₹400Cr) or 22% (for domestic companies under Section 115BAA optional regime) — lower than partnership. LLPs are taxed at 30% (same as partnerships). For high-profit businesses, the private limited company structure (22-25% tax rate) is more tax-efficient than partnership (30%), while providing better liability protection.
Can a minor be a partner in a partnership firm?: A minor cannot become a full partner in an Indian partnership firm — minors lack contractual capacity under the Indian Contract Act. However, Section 30 of the Indian Partnership Act 1932 allows a minor to be admitted to the benefits of partnership — the minor shares in profits but is not personally liable for firm debts. On attaining majority (18 years), the erstwhile minor has 6 months to elect whether to continue as a partner (accepting full rights and liabilities) or retire. If no election is made within 6 months of attaining majority, the minor is presumed to have elected to continue as a partner. Minors admitted to partnership benefits must be explicitly mentioned in the partnership deed.

Continue with another utility in legal document tools.

Explore all categories

PDF hub Jobs & admissions Image hub Developer hub Finance hub Converters Business Health Real estate GST & tax HR & payroll Legal Design & marketing Education