A partnership agreement between the parties that outlines the terms and conditions of the partnership between the parties to the agreement is called a partnership deed. The parties form of partnership deed so that they can provide a clear understanding of the rules of each party, and since the Deed outlines the terms and conditions it ensures the smooth running of the operations of the form. The agreement between the parties can either be in oral or written form. Section 4 of the Partnership Act, 1932 states that partnership is a relation between persons who have agreed to share the profits of a business, the business can be carried out by any of them acting for all or buy all of them.

Partnership firms are relatively easy to set up and, statutory compliance that is required to set up the form is relatively less.

To form a partnership firm one has to choose the partnership firm name and create a partnership deed. The deed agreement may be oral or written. If the Partnership Deed is an Oral agreement it will not have any value for tax purposes, then it is advisable to write the partnership deed and register the same.

The partnership deed will record all the rights and responsibilities of each member. A partnership deed should have the name of the form, name of the partners, address of the partners, the nature of the business that will be carried out, the duration of the term of the partnership, duties of the partners, rights of the partners, contributed capital by each partner, the ratio of profit-sharing among the partners, remuneration 2 partners, the drawings that can be made by each partner, and a method used for calculating goodwill.

To register a partnership deed in India An application and prescribed fees are required to be submitted to the registrar of the form of the state in which the firm is situated. Some documents are required to be submitted along with the application that is to be submitted with the register of the form. An application for registration of partnership inform number one, the specimen of the affidavit, certified true copy of partnership deed, the ownership group of the principal place of business, and if the place is on rent then rental or lease agreement will be required to be submitted.

every partner or their agents who have been authorized to act in the place of partners must sign the application or statement. Once the registrar is satisfied with the Partnership Deed, he will record an entree of the statement in the register of form. After registering the agreement, the registrar will issue a certificate of registration. Any person can inspect the register of forms on payment of the prescribed fees. Registration with the income tax Department and registration with the registrar of form is different from each other so the applicant must register with the income tax Department also, the applicant must obtain a pan card. The pan card will be used for the partnership form as it will require to open a current account in the name of the form and the operations of the partnership farm will operate through this bank account.

If a person intends to file a case in the court and wishes to enforce rights arising from the contract he has agreed upon then he must have the partnership deed registered and the registration of partnership must be done before starting the business or anytime during the continuance of partnership.