Is a written Partnership Deed necessary in Bangladesh?

A written deed is important because it provides clear evidence of the partners’ agreement and helps reduce disputes about capital, profit, management and liabilities.

What information is required to create a Partnership Deed?

You normally need the partners’ names and addresses, business details, capital contribution, profit and loss ratio, management responsibilities, banking authority and dissolution terms.

Are capital contribution and profit-sharing ratio always equal?

No. The partners may agree on a profit-sharing ratio that differs from their capital contribution, subject to applicable law and the terms accepted by all partners.

Can I create a Partnership Deed online?

Yes. You can enter the required business and partner information through the guided form and generate a structured Partnership Deed for review.

Does creating a Partnership Deed automatically register the firm?

No. Creating the deed documents the agreement between the partners. Firm registration is a separate process before the relevant registration authority.

Partnership Deed Bangladesh – Create Partnership Agreement Online

Q: What is a Partnership Deed?

A Partnership Deed is a written agreement that records the capital, ownership, profit-sharing ratio, duties, authority and other agreed terms between business partners.

About this document

What is a Partnership Deed?

A Partnership Deed is a written agreement between two or more persons who agree to carry on a business and share its profits. The document records the commercial understanding between the partners and establishes clear rules for ownership, capital, management, profit distribution, liabilities and the future operation of the business.

Under the Partnership Act, 1932, a partnership is based on an agreement between persons who agree to share the profits of a business carried on by all or any of them acting for all. A properly written deed helps the partners document that agreement in a clear and organised form.

Why is a Partnership Agreement Important?

A verbal understanding may work at the beginning of a business, but disagreements can arise when partners contribute different amounts of money, perform different responsibilities or expect different shares of profit. A written Partnership Deed helps reduce uncertainty by recording the agreed terms before a dispute occurs.

What Should a Partnership Deed Include?

Full name, identity and address of every partner
Name and principal address of the partnership business
Nature and scope of the business
Capital contribution of each partner
Ownership and profit-sharing ratio
Rules for sharing business losses
Roles and management responsibilities
Authority to operate bank accounts
Accounting, audit and record-keeping rules
Admission of a new partner
Retirement, death or incapacity of a partner
Dispute-resolution procedure
Duration and dissolution of the partnership

Who Should Use This Deed?

This document may be used by entrepreneurs starting a business together, family members operating a joint business, professionals establishing a partnership firm, investors joining an existing venture or business owners who want to formalise an existing verbal arrangement.

Capital and Profit Sharing

Capital contribution and profit-sharing ratio are not always the same. One partner may contribute more capital while another contributes management experience, labour, technology or business contacts. The deed should clearly mention the agreed capital and the separate percentage in which profits and losses will be distributed.

Management and Decision-Making

The deed should state which partner will manage daily operations, who may sign contracts, who may borrow money and whether important decisions require unanimous approval or a majority decision. Clear authority clauses can help prevent unauthorised commitments on behalf of the firm.

Registration and Legal Review

Creating a Partnership Deed and registering a partnership firm are related but separate matters. Registration requirements, stamp duty and supporting documents may depend on the nature of the business and the applicable authority. Parties should obtain professional legal advice where the transaction involves substantial investment, property, borrowing, foreign partners or complex liabilities.

Create Your Partnership Deed Online

Use the guided form to enter the partners’ details, business information, capital, profit ratio and agreed conditions. The system will organise the information into a structured Partnership Deed that can be reviewed, printed and executed by the parties.