1.1 The Indian Partnership Act, 1932 (hereinafter referred to as the Act.) applies to the whole of India except the State of Jammu & Kashmir. The Act has come into force w.e.f. 1st day of October, 1932 with the assent of the Governor General of India on 8th April, 1932.

1.2 The total Act has been divided into Eight Chapters out of which there is only one Chapter; i.e,. Chapter VII comprising of sections ranging from 56 to 71 the application of which has been made optional to all the implementing States.

2.1 Partnership is the relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all.

2.2 Persons who have entered into partnership with one another are called individually "partner" and collectively "a firm".

2.3 When duration of partnership is not defined, the partnership is "partnership at will". When persons become partner for a particular venture or for a specified time, it is called a "particular partnership".

3.1 Relationship between the partners is defined through the partnership deed.

3.2 Partnership Deed is necessary under section 58(1) at the time of registration of any firm. Though, there is no requirement of having any instrument in writing at the time of admission and / or retirement or dissolution of firm, under Rule 16 of Indian Partnership Rules, 1989, the Registrar of Firms (who is a registering authority to register the firm) is empowered to take on record the evidence in support of registering any partnership. Therefore, the Deed is necessary to be executed to place on record the relationship of partners at the time of registration and at subsequent changes to register such changes.

3.3 Various forms as are required to be filled up and filed with the Registrar need certain information. Therefore, it is necessary to have that information incorporated in the deed which Registrar can verify while scrutinizing the forms and ultimately register the firm. Names and Addresses of Partners are to be mentioned in the beginning paras. Partnership Deed should, therefore, contain following clauses.

(i) Name of the firm

(ii) Date of commencement of Business of the firm

(iii) Address including address of the additional place/s of Business of the firm

(iv) Nature of Business

(v) Duration

(vi) Sharing of Profit & Loss between Partners

(vii) Capital of the firm

The above clauses are necessary in all deeds, since the entry on record which is furnished by the Registrar to the Firm gives the above information as recorded in the Register. If for any reason, any of the above clauses are missing from the deed, the registration procedure cannot be completed. As regards Point No. (vii) above, it should be noted that to be a valid document, partnership deed should necessarily be on a stamp paper of requisite value and this value is determined by the amount of capital.

3.4 Any additional clauses can be incorporated by the partners as required by them.

3.5 Hence, relationship between partners right from formation to dissolution is mentioned in the Deed of Partnership.

4.1 A partner is the agent of the firm for the purposes of the business of the firm.

4.2 The authority of a partner to bind the firm in ordinary course of business, conferred by section 19 is called "implied authority" of a partner.

4.3 The partners in a firm may, by contract between the partners, extend or restrict the implied authority of any partner. Every partner is liable jointly with other partners and also severally for all acts of the firm done while he is a partner.

The provisions of Chapter VII have been given in a tabular manner separately as these deals with the practical aspects.

• For true extract of the recording of registration or the change in constitution, a stamp paper of Rs. 10 shall be enclosed with the respective application and same shall be purchased in the name of firm or partner.

• Supplementary Deed is prepared where there is change in address of a firm or a change in share of profits among the partners, or change in remuneration to partners, interest on capital or opening and closing of branches etc. Supplementary Deeds are to be executed on a stamp paper of Rs. 200/-.

• There is no need to submit the Deed of Partnership, if executed only for the purpose of change in Profit Sharing Ratio or Remuneration or Interest payable to partners, since these are not recorded by Registrar of Firms in the Entry on Record.

• Any Supplementary Deed executed at the time of formation of partnership forms part of original deed and requires Marathi Translation as required in the case of main deed of partnership.

• Marathi Translation of the partnership is required only at the time of registration.

• If one partner retires and a new partner is admitted on the same day, retirement cum admission deed can be prepared and registered with the Registrar of Firms on payment of registration fees of Rs. 400/- only if both the events are covered in the same Form E.

• Partners’ signatures must be on solemn affirmation before a Magistrate or such other Officer empowered to administer oaths. Ensure that the name & address stamp of such authorised officer is affixed. In case of notarized forms, notary if appointed by the Government of Maharashtra, should use the red ink to stamp the document, while if appointed by the Government of India, can use the blue ink.

• The documents shall be submitted within one month from the date of Notarization/ Attestation. On each notarized document, serial number in Register of a Notary is necessary to be mentioned.

• The Bombay Stamp Act uses the word "share of contribution" instead of Capital of a Firm. It appears that additional stamp duty is payable on every increase in capital as long as it does not exceed Rs. 5 lakhs as per Article 47 of the said Act.

• Even if there is a change in name due to marriage, Form ‘D’ along with the copy of Marriage Certificate has to be submitted.

• In case of simultaneous changes in Principal Place of Business along with Change in Constitution and/or Change in Name of Partner and/or change in Address of Partner, then separate Forms B/E/D are required to be submitted as the case may be to intimate each such change.

• Any changes that occur within a span of 90 days can be intimated together to the Registrar of Firms.

• Common Form E can be used in case of Admission cum Retirement within 90 days.

• Always write full particulars without using any short forms or abbreviations.

• In case of Retirement cum Admission, if intimated, using the same Form E, always obtain signatures of all partners including Retiring, Continuing and Incoming on Form E.

• There is no power of condonation of penalty or appeal to any higher authority other than as envisaged u/s. 58(4)

• While drafting any partnership deed subsequent to the registration, at the time of any changes etc. always ensure that Name, Address and Object clause as well as spellings of Names of the Partners are identical as compared to the earlier submissions and as per Entry on record.

• If for any reason you need registration of papers submitted by you urgently or early hearing in case of delay in submissions, then an Affidavit on a stamp paper of Rs.200/- signed by all partners duly notarized, stating the reason for urgency be submitted to the Registrar. After accepting Affidavit, papers are processed with priority.

• In case of following three events Supplementary Deed of partnership is not required to be executed.

EVENT	APPLICABLE FORM	DOCUMENT REQUIRED TO BE SUBMITTED
Change of Name & Address of Lady Partner due to marriage	‘D’	Attested copy of Marriage Registration Certificate indicating changed Name & Address both.
Change of name due to age of Majority by Minor and opted to continue as partner	‘F’	Attested copy of Birth Certificate or Passport or PAN Card as proof of age.
Change of Karta in case of HUF due to death of present Karta	‘E’	Attested copy of Death Certificate of Karta who is passed away.

Registrar of Firms Address: New Adm. Bldg, 6th Floor, Near Chetana College, Bandra (E) Mumbai - 400 051. Tel: 2655 1944, 2655 1149. Cash Counter Timings: 10.30 A.M. to 3.30 P.M.