INTRODUCING A NEW PARTNER IN AN EXISTING PARTNERSHIP
THIS DEED is executed on this _____ day of ________ between:
Sh.________________ s/o, Sh. __________________, r/o of _________________________,
Sh.________________ s/o, Sh. __________________, r/o of _________________________, (hereinafter referred to as “the existing Partners”) of the one part
AND
Sh.________________ s/o, Sh. __________________, r/o of _________________________, hereinafter referred to as “the new partner”) of the other part
The existing partners and the new partner hereinafter collectively referred to as the “Parties”.
WHEREAS
1. The existing Partners have been carrying on the business of ___________ in partnership together at under the firm name M/s _______________ vide terms of a deed of partnership dated ____________ (hereinafter called “the existing partnership business”).
2. Sh. __________ has expressed his desire to join the existing partnership business as the new partner and is ready to contribute a capital of Rs.__________
3. The existing Partners have agreed to introduce Sh. __________ as the new partner in the existing partnership business on the terms and conditions hereinafter appearing.
NOW THIS DEED WITNESSETH AS UNDER:
1. Term of Partnership
The partnership hereby constituted (hereinafter called “the new partnership”) shall be deemed to have commenced on the day of ____________ and from such date the deed of partnership dated _________shall be superseded by this deed and shall continue unless otherwise determined by the Parties.
2. Name
That the business of the Partnership shall be carried on under the same name and style as that of the existing partnership business i.e. M/s ____________________.
3. Place of Carrying Business
That the business of Partnership shall be carried from ________________________ or any other place as may be agreed upon by the Parties.
4. Capital Contribution & Interest on Capital
The capital of the new partnership shall be Rs. __________ whereof Rs.________ represents the capital of the existing partnership contributed by the partners and the balance of Rs ________ shall be contributed by the new partner __________ as his share. However, further funds required for the new Partnership shall be contributed or arranged by the Parties equally and in such manner as may be mutually agreed upon by and between the Parties from time to time. Interest at the rate of ____ percent per annum or as may be prescribed under Section 40 (b) of the Income Tax Act, 1961 or any other applicable provisions as may be in force under the Income tax assessment of Partnership firm for the relevant accounting period shall be payable to the Parties on account standing to the credit of the account of the Parties. Such interest shall be calculated and credited to the account of each partner at the close of each accounting year. However, in case of loss or lower income, rate of interest can be nil or lower than ____ percent as may be agreed upon by and between the Parties from time to time.
5. Remuneration
That the new partner shall also be a working partner in the firm and he shall be entitled to a remuneration of Rs. ________ per month which shall be paid by the __th of each month. The Parties shall be entitled to increase or reduce the above remuneration as may be agreed upon from time to time by and between the parties.
6. Drawings by Partner
The new Partner shall be entitled to draw (in addition to the remuneration as per clause 4) out of the partnership business any sum or sums of money not exceeding Rs. ________ per month for his own use, such sums to be duly accounted for on each succeeding settlement of accounts and division of profits of the partnership and if any excess drawings is found on any such settlement, the same shall be refunded by the new partner concerned (with interest at ___% per annum).
7. Debts of Old Partnership
All the debts and liabilities of the existing partnership shall be discharged by the existing partners and they shall indemnify and keep indemnified the new partner and also the assets and the properties of the new partnership against such debts, liabilities and against all proceedings, costs, claims and expenses in respect thereof;
8. Profits of Old Partnership
All the profits of the existing partnership up to the commencement of the new partnership shall belong to the existing partners only in the proportions in which they would be entitled thereto vide the terms of deed of partnership dated ________
9. Profit Sharing Ratio of new partnership
That profits or losses of the new Partnership (including losses of capital nature, if any) shall be divided amongst and borne by the Parties in proportion to their respective shares in the new partnership.
10. Deed of Partnership dated _____ to remain in force
All the terms of the deed of partnership dated _______, except those as has been modified by this deed, shall remain in force and shall have effect as if the same have been executed by the parties hereto.
IN WITNESS WHEREOF,the parties have set their hands this ____________ day of __________.
The Existing Partners
The New Partner
Witnesses:
1.
2.