I have an proprietorship firm
1 year ago
Respected sir,
I have an proprietorship firm , one of the investor is ready to invest in my firm may I know what kind of legal papers I shall make with him
A.Dear Sir,
U may have to form partnership firm as the scope of your business will change from Proprietorship to Partnership. please find below the proforma to get the partnership firm registered.
___________________
PARTNERSHIP DEED
THE DEED OF PARTNERSHIP is made and executed between on this the xxxxxxxxxx day of xxxxxxxxxx, Two Thousand and Eighteen (00.00.0000) by and
BETWEEN:
Xxxx
Xxxxx
Xxxxxx
Xxxxxx
PAN No. : xxxxxxxxx
Hereinafter referred to as the ‘FIRST PARTY’ which expression shall mean and include his legal heirs, legal representatives, administrators, executors, assigns, etc, of the ‘ONE PART’
AND:
xxxxxxx
xxxxxxxxx
xxxxxxxxxxx,
xxxxxxxxxxxxxxx
PAN No. : xxxxxxxxxxxxxxx
Hereinafter referred to as the ‘SECOND PARTY’ which expression shall mean include his legal heirs, legal representatives, administrators, executors, assigns, etc., of the ‘SECOND PART’
NOW THEREFORE THIS DEED OF PARTNERSHIP WITNESSETH AS UNDER:
1. NAME AND STYLE OF THE FIRM:
The business of the Partnership Firm shall be carried on in the name and style of M/S. xxxxxxxxxxxxxxxx having its Principal place of business at No. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2. NATURE OF BUSINESS:
The principal nature of business of the partnership of the partnership firm shall be that of educational related that Coaching classes for KAS, IAS and all competitive examinations etc. The Partnership firm shall also conduct business in the other eductional related and anciliary activities..
3. COMMENCEMENT OF BUSINESS:
The business is deemed to be commenced from the date of execution of this partnership deed and parties are entering into terms under this deed, today.
WHEREAS, the Parties to this Partnership Deed have agreed upon to carry on business in advertising in the name and style ‘M/S. JNANA XXXXXXXXXXXXXXXX’ having its Principal place of business at No.xxxxxxxxxxxxxxxxxxx.
AND the Parties deem it expedient and desirable to reduce the terms and conditions governing to this deed of Partnership into writing:
4. PLACE OF BUSINESS:
The Partnership firm shall commence at No.xxxxxxxxxxxxxxxxxxxxx or such other place/places as the partners may hereafter from time to time determine.
5. TERM OF THE PARTNERSHIP:
That the term of the partnership shall be at WILL.
6. CAPITAL OF THE FIRM:
It is agreed that the First Party shall invest Rs.00,00,000/- and Second Party shall invest Rs.00,00,000/- and it is agreed among the partners that the further capital for the firm shall be invested by the partners as and when required by the firm in the proportion that shall be agreed upon from time to time. The partners by mutual consent may raise loan from any Nationalised/Co-operative/Schedule Bank, Financial Institutions/KSFC for the purpose of capital of the firm and the same shall be repaid out of the profit of the firm.
7. SHARE OF PROFIT/LOSS:
It is agreed between the partners that, the first party shall hold 50% (Fifty percent) of the share in this partnership concern, the second party shall hold 50% (Fifty percent) of the shares in this partnership concern,.The net profit or loss of the firm shall be divided between the partners in the ratio above mentioned according to the individual percentage of shares. All out going and other expenses of the firm shall be paid out of the capital and profits of the business and in case of difficulty, by the partners in proportionate share.
8. BANK ACCOUNTS/BUSINESS TRANSACTION:
That the Partnership Firm shall open an Bank Account in the name of “xxxxxxxxxxxxxxxxxxxx” and shall be operated by the First Party and the Second party jointly subject to any instructions as may be given from time to time by the firm.
9. BOOKS OF ACCOUNTS:
The Parties agree that the regular books of accounts shall be maintained which shall be kept at the registered office of the business and would be open to inspection at all reasonable times to all partners or their authorized representatives who shall be free to take copies of the accounts extract. The accounting year for the business shall be effective from 1st April every year till 31st March succeeding year. The profit and losses shall be shared in the ratio as stated supra. The profit shall be distributed or losses to be contributed by the partners within the stipulated period of three months or extended with the mutual consent of the partners.
10. APPOINTMENT OF STAFF:
All appointments of working staff etc., shall be done by the consent of second and third partners.
11. RIGHTS AND DUTIES OF PARTNERS:
The Second and third parties shall be the whole-time working partners and the first party shall be the sleeping partner and the First party shall be paid a sum of Rs. 10,000/- (Rupees Ten Thousand only) per month as remuneration.
However the parties shall be bound by the following terms and conditions:
a. The Parties here agreed that either of the partners shall not assign, mortgage or charge his share in the assets of the firm, lend any money belonging to the firm or except in the ordinary course of the business, dispose of by pledge, sale or otherwise, any partnership property or profits.
b. The parties here to shall reserve the right to sell their individual share/shares prescribed above to any person of their choice by intimating the same to the other partners.
c. If a third person purchases the share on the partnership firm in any of the aforesaid partner then the partner shall accordingly change the constitution of the partnership firm in accordance with Indian Partnership Act.
d. That each of the partners entered into the partnership firm in their individual capacity and shall carry on the business of the firm to the firm to the greatest common advantage of the firm, be just and faithful to the other partners and shall render a true and full information affecting the firm to the other partners or their legal representatives and pay his separate and private debts relating to his separate business shall indemnify the other partners and the partnership and the partnership assets against all proceedings claims or denied on respect thereof.
12. RETIREMENT/DEATH/INSOLVENCY OF PARTNER:
That in the event of the demise of any of the partner to the firm, then on such demise of the said partner the eldest male member of such deceased partner shall be entered in the partnership business or in the event of no male member then the wife or any eldest female member in the said family shall be entered as a partner in the partnership business on the same terms and conditions. But upon dissolution in other cases it shall be wound-up and the assets and liabilities dealt in accordance with the provisions of the Indian Partnership Act. It is agreed among the partners that the retiring/out going partner shall not use firm’s name in future.
All the other matters for which no provision is made in this deed, shall be decided by the mutual consent of the partners.
13. DISPUTES:
In the event of any disputes or differences of opinion in the matter of interpretation, execution of carrying out the objects and functions of the enterprise, the parties shall have the right to approach the Civil Court for their redressal.
In the witnesses wherefore the partners have signed and executed this deed of partnership on the day, month and year mentioned above.
WITNESSES:
1. FIRST PARTNER
2. SECOND PARTNER
U may have to form partnership firm as the scope of your business will change from Proprietorship to Partnership. please find below the proforma to get the partnership firm registered.
___________________
PARTNERSHIP DEED
THE DEED OF PARTNERSHIP is made and executed between on this the xxxxxxxxxx day of xxxxxxxxxx, Two Thousand and Eighteen (00.00.0000) by and
BETWEEN:
Xxxx
Xxxxx
Xxxxxx
Xxxxxx
PAN No. : xxxxxxxxx
Hereinafter referred to as the ‘FIRST PARTY’ which expression shall mean and include his legal heirs, legal representatives, administrators, executors, assigns, etc, of the ‘ONE PART’
AND:
xxxxxxx
xxxxxxxxx
xxxxxxxxxxx,
xxxxxxxxxxxxxxx
PAN No. : xxxxxxxxxxxxxxx
Hereinafter referred to as the ‘SECOND PARTY’ which expression shall mean include his legal heirs, legal representatives, administrators, executors, assigns, etc., of the ‘SECOND PART’
NOW THEREFORE THIS DEED OF PARTNERSHIP WITNESSETH AS UNDER:
1. NAME AND STYLE OF THE FIRM:
The business of the Partnership Firm shall be carried on in the name and style of M/S. xxxxxxxxxxxxxxxx having its Principal place of business at No. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
2. NATURE OF BUSINESS:
The principal nature of business of the partnership of the partnership firm shall be that of educational related that Coaching classes for KAS, IAS and all competitive examinations etc. The Partnership firm shall also conduct business in the other eductional related and anciliary activities..
3. COMMENCEMENT OF BUSINESS:
The business is deemed to be commenced from the date of execution of this partnership deed and parties are entering into terms under this deed, today.
WHEREAS, the Parties to this Partnership Deed have agreed upon to carry on business in advertising in the name and style ‘M/S. JNANA XXXXXXXXXXXXXXXX’ having its Principal place of business at No.xxxxxxxxxxxxxxxxxxx.
AND the Parties deem it expedient and desirable to reduce the terms and conditions governing to this deed of Partnership into writing:
4. PLACE OF BUSINESS:
The Partnership firm shall commence at No.xxxxxxxxxxxxxxxxxxxxx or such other place/places as the partners may hereafter from time to time determine.
5. TERM OF THE PARTNERSHIP:
That the term of the partnership shall be at WILL.
6. CAPITAL OF THE FIRM:
It is agreed that the First Party shall invest Rs.00,00,000/- and Second Party shall invest Rs.00,00,000/- and it is agreed among the partners that the further capital for the firm shall be invested by the partners as and when required by the firm in the proportion that shall be agreed upon from time to time. The partners by mutual consent may raise loan from any Nationalised/Co-operative/Schedule Bank, Financial Institutions/KSFC for the purpose of capital of the firm and the same shall be repaid out of the profit of the firm.
7. SHARE OF PROFIT/LOSS:
It is agreed between the partners that, the first party shall hold 50% (Fifty percent) of the share in this partnership concern, the second party shall hold 50% (Fifty percent) of the shares in this partnership concern,.The net profit or loss of the firm shall be divided between the partners in the ratio above mentioned according to the individual percentage of shares. All out going and other expenses of the firm shall be paid out of the capital and profits of the business and in case of difficulty, by the partners in proportionate share.
8. BANK ACCOUNTS/BUSINESS TRANSACTION:
That the Partnership Firm shall open an Bank Account in the name of “xxxxxxxxxxxxxxxxxxxx” and shall be operated by the First Party and the Second party jointly subject to any instructions as may be given from time to time by the firm.
9. BOOKS OF ACCOUNTS:
The Parties agree that the regular books of accounts shall be maintained which shall be kept at the registered office of the business and would be open to inspection at all reasonable times to all partners or their authorized representatives who shall be free to take copies of the accounts extract. The accounting year for the business shall be effective from 1st April every year till 31st March succeeding year. The profit and losses shall be shared in the ratio as stated supra. The profit shall be distributed or losses to be contributed by the partners within the stipulated period of three months or extended with the mutual consent of the partners.
10. APPOINTMENT OF STAFF:
All appointments of working staff etc., shall be done by the consent of second and third partners.
11. RIGHTS AND DUTIES OF PARTNERS:
The Second and third parties shall be the whole-time working partners and the first party shall be the sleeping partner and the First party shall be paid a sum of Rs. 10,000/- (Rupees Ten Thousand only) per month as remuneration.
However the parties shall be bound by the following terms and conditions:
a. The Parties here agreed that either of the partners shall not assign, mortgage or charge his share in the assets of the firm, lend any money belonging to the firm or except in the ordinary course of the business, dispose of by pledge, sale or otherwise, any partnership property or profits.
b. The parties here to shall reserve the right to sell their individual share/shares prescribed above to any person of their choice by intimating the same to the other partners.
c. If a third person purchases the share on the partnership firm in any of the aforesaid partner then the partner shall accordingly change the constitution of the partnership firm in accordance with Indian Partnership Act.
d. That each of the partners entered into the partnership firm in their individual capacity and shall carry on the business of the firm to the firm to the greatest common advantage of the firm, be just and faithful to the other partners and shall render a true and full information affecting the firm to the other partners or their legal representatives and pay his separate and private debts relating to his separate business shall indemnify the other partners and the partnership and the partnership assets against all proceedings claims or denied on respect thereof.
12. RETIREMENT/DEATH/INSOLVENCY OF PARTNER:
That in the event of the demise of any of the partner to the firm, then on such demise of the said partner the eldest male member of such deceased partner shall be entered in the partnership business or in the event of no male member then the wife or any eldest female member in the said family shall be entered as a partner in the partnership business on the same terms and conditions. But upon dissolution in other cases it shall be wound-up and the assets and liabilities dealt in accordance with the provisions of the Indian Partnership Act. It is agreed among the partners that the retiring/out going partner shall not use firm’s name in future.
All the other matters for which no provision is made in this deed, shall be decided by the mutual consent of the partners.
13. DISPUTES:
In the event of any disputes or differences of opinion in the matter of interpretation, execution of carrying out the objects and functions of the enterprise, the parties shall have the right to approach the Civil Court for their redressal.
In the witnesses wherefore the partners have signed and executed this deed of partnership on the day, month and year mentioned above.
WITNESSES:
1. FIRST PARTNER
2. SECOND PARTNER
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A.Hello Sir,
A written agreement which should be enforceable by law is required to avoid any legal complications or losses in the future. The parties to the agreement must have given free consent and the objective of the agreement must be valid and legal.
A written agreement which should be enforceable by law is required to avoid any legal complications or losses in the future. The parties to the agreement must have given free consent and the objective of the agreement must be valid and legal.
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A.Dear client
You need to ascertain first that in what way he wants to invest. If it is going to be in the form of debt then you can retain the proprietorship and if it is going to be equity then you will have to change the firm to partnership or pvt. Ltd.
In either way you will need a legal doc for the same
Loan agreement or shareholder agreement
You need to ascertain first that in what way he wants to invest. If it is going to be in the form of debt then you can retain the proprietorship and if it is going to be equity then you will have to change the firm to partnership or pvt. Ltd.
In either way you will need a legal doc for the same
Loan agreement or shareholder agreement
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