Draft a Legally Sound Partnership Deed in Minutes
A professional, guided deed generator built around the Indian Partnership Act, 1932 -complete with Section 40(b) remuneration limits, arbitration clauses, and state-wise stamp duty guidance.
Everything you need for a compliant deed
Purpose-built for Indian partnership law -no more copy-pasting from old Word templates.
Act-Compliant Clauses
Every clause cross-references the Indian Partnership Act 1932, Contract Act 1872, and Arbitration & Conciliation Act 1996.
Section 40(b) Ready
Automatic remuneration limits under Income Tax Act Section 40(b) -no more manual slab calculations.
State-wise Stamp Duty
Live guidance on stamp duty rates for all 28 states and 8 UTs -straight from the wizard.
Zero Data Leaves Your Browser
Works 100% offline. Your client's PII never touches a server -saved only in your browser's localStorage.
Export to PDF & Print
One-click PDF export, print-ready formatting, and a copyable plain-text version for your records.
Auto-save & Resume
Walk away mid-draft -come back later and pick up exactly where you left off. No accounts, no logins.
From blank page to signed deed -in 4 steps
Firm & Partners
Enter firm name, address, and details of 2+ partners with PAN, Aadhaar, and designations.
Financial Terms
Capital contributions, profit ratios, interest on capital, and partner remuneration.
Clauses & Exit
Banking authority, non-compete, arbitration, admission, retirement, and dissolution terms.
Preview & Export
Review the full deed, tweak any step, then download as PDF or print on stamp paper.
Partnership Deed FAQ -Frequently Asked Questions
Common questions about drafting, stamping, and registering a partnership deed in India.
What is a partnership deed?
A partnership deed is a written legal agreement between two or more persons who carry on a business together and share its profits and losses. Under the Indian Partnership Act 1932, while an oral partnership is valid, a written and registered partnership deed is strongly recommended as it defines rights, duties, profit-sharing ratio, capital contribution, and dispute resolution between partners.
Is a partnership deed legally binding in India?
Yes. A partnership deed becomes legally binding once it is executed on non-judicial stamp paper of the appropriate value (varies by state under the Indian Stamp Act 1899) and signed by all partners in the presence of two witnesses. Registration with the Registrar of Firms under Section 58 of the Partnership Act 1932 is optional but highly recommended for full legal protection.
How much stamp duty is required for a partnership deed?
Stamp duty varies by state. Maharashtra: ₹500 (fixed). Delhi: 1% of capital (min ₹200). Karnataka: ₹2,000. Tamil Nadu: ₹300. Gujarat: 1% of capital (max ₹10,000). LegalVaani shows state-specific guidance for all 28 states & 8 UTs live in the wizard.
What is Section 40(b) of the Income Tax Act?
Section 40(b) specifies the maximum deductible remuneration payable to working partners: ₹3,00,000 or 90% of the first ₹3 lakh of book profit, plus 60% of the balance. Interest on capital is capped at 12% p.a. The partnership deed must explicitly authorize these to claim them as deductible business expenses.
How many partners can a partnership firm have?
Minimum 2, maximum 50 as per Rule 10 of the Companies (Miscellaneous) Rules 2014. If the number exceeds 50, the entity must be registered as a company or LLP under the respective Acts.
Is registration of a partnership firm mandatory?
No, registration is optional under the Indian Partnership Act 1932, but highly recommended. An unregistered firm cannot file suit against third parties or enforce contractual rights (Section 69). Registration is done with the Registrar of Firms of your state by filing Form A with the partnership deed.
Can I make a partnership deed online for free?
Yes. LegalVaani lets you create a legally compliant partnership deed online for free with instant PDF download. Built on the Indian Partnership Act 1932, with Section 40(b) provisions, arbitration clauses, and state-wise stamp duty guidance. No signup, no payment, and your data never leaves your browser.
What is the difference between a partnership firm and LLP?
A partnership firm is governed by the Indian Partnership Act 1932 -partners have unlimited personal liability. An LLP (Limited Liability Partnership) is governed by the LLP Act 2008 -partners have limited liability, personal assets protected beyond capital contribution. LLP requires DSC, DIN, and MCA registration, while partnership only needs a stamped deed.
Do I need a lawyer to review the deed?
Yes, always recommended. LegalVaani speeds up drafting but a qualified Advocate, CA, or CS should review before execution -especially for complex partnerships, non-resident partners, or large capital structures. The output is a compliant draft, not a substitute for legal counsel.
Is my data sent to any server?
No. LegalVaani runs 100% in your browser. All data -partner PAN, Aadhaar, capital amounts -is stored only in your browser's localStorage and never transmitted to any server. Complete privacy for your clients.
Can I edit after downloading the PDF?
Yes. Your draft stays auto-saved in your browser. Return anytime, jump to any step via the progress bar, make edits, and re-download the updated PDF.
Does this support LLPs or Private Limited Companies?
No -LegalVaani is exclusively for general partnership firms under the Indian Partnership Act 1932. LLPs are governed by LLP Act 2008, Pvt Ltd by Companies Act 2013 -both require a different agreement and MCA filing.
Ready to draft your first deed?
Takes about 10 minutes. No signup, no credit card, no data leaves your browser.