Partnership Deed Construction Business Template for India

A Partnership Deed Construction Business is essential for establishing a formal partnership structure in India's construction sector. This document is required when two or more individuals or entities decide to join forces to operate a construction business, combining their resources, expertise, and capital. Governed by the Indian Partnership Act, 1932, and influenced by construction-specific regulations like RERA 2016, the deed defines crucial aspects such as profit sharing, management rights, operational procedures, and dispute resolution mechanisms. It serves as the founding document that governs the relationship between partners and provides legal protection while ensuring compliance with Indian construction industry regulations. The deed is particularly important given the complex nature of construction projects, significant capital requirements, and the need for clear delineation of responsibilities and liabilities among partners.

1. Parties: Details of all partners including names, addresses, and occupation

2. Background: Context of the partnership formation and brief description of the construction business

3. Definitions: Key terms used throughout the deed including technical construction terms

4. Partnership Name and Business: Official name of the firm and detailed scope of construction activities

5. Term and Commencement: Duration of partnership and start date of operations

6. Principal Place of Business: Registered office address and any branch offices

7. Capital Contribution: Initial capital contributed by each partner and terms for additional contributions

8. Profit and Loss Sharing: Ratio and terms of profit/loss distribution among partners

9. Management and Decision Making: Partners' roles, responsibilities, and voting rights in management decisions

10. Banking and Finance: Banking arrangements and authority for financial transactions

11. Books of Accounts: Accounting procedures, audit requirements, and financial year details

12. Rights and Duties of Partners: Detailed obligations and entitlements of each partner

13. Restriction on Partners: Non-compete and other restrictive covenants

14. Project Execution: Procedures for accepting and executing construction projects

15. Meetings and Resolution: Procedures for partner meetings and decision-making processes

16. Retirement and Admission: Process for partner retirement and admission of new partners

17. Death and Incapacity: Procedures in case of death or incapacity of partners

18. Dissolution: Grounds and procedures for partnership dissolution

19. Dispute Resolution: Mechanism for resolving disputes between partners

20. Governing Law: Applicable laws and jurisdiction