Business Partnership Agreement Sample Pakistan

PARTNERSHIP DEED

Document Control

• Effective Date: [Date, e.g., 01-JAN-2024]
• Version: 1.0
• Jurisdiction: Islamic Republic of Pakistan (Governed by the Partnership Act, 1932)
• Scope: General Business Partnership

1. LEGAL DISCLAIMER

This document is a standardized template for a General Partnership in Pakistan. It does not constitute specific legal advice. Parties are strictly advised to have this document reviewed by a qualified legal professional, stamped according to the provincial Stamp Act, and notarized to ensure enforceability under Pakistani law. Failure to register the firm with the Registrar of Firms may limit the partners' ability to sue third parties.

2. PARTIES

This Partnership Deed is made and entered into on this [Day] day of [Month], [Year], by and between:

1. [Full Legal Name], S/o/D/o [Father’s Name], holding CNIC No. [CNIC Number], resident of [Full Address] (hereinafter referred to as "First Partner").

2. [Full Legal Name], S/o/D/o [Father’s Name], holding CNIC No. [CNIC Number], resident of [Full Address] (hereinafter referred to as "Second Partner").

(Collectively referred to as the "Partners").

3. OPERATIVE CLAUSES

3.1 Business Name and Nature

The business shall be carried out under the name and style of [Business Name]. The nature of the business shall be [Describe Business Activities] and/or any other business as may be mutually agreed upon by the Partners.

3.2 Principal Place of Business

The principal office of the Partnership shall be located at [Full Office Address, City, Province].

3.3 Capital Contribution

The initial capital of the Partnership shall be [Total Amount in PKR].

• First Partner shall contribute: [Amount in PKR]
• Second Partner shall contribute: [Amount in PKR]

3.4 Profit and Loss Sharing

All net profits and losses arising from the business shall be shared between the Partners in the following ratio:

• First Partner: [Percentage, e.g., 50%]
• Second Partner: [Percentage, e.g., 50%]

3.5 Management and Authority

All Partners shall have the right to participate in the management of the firm. No partner shall, without the consent of the other, borrow money, lend funds, or commit the firm to any obligation exceeding [Amount in PKR].

3.6 Banking

A business bank account shall be opened in the name of the firm. The account shall be operated by [Specify: Jointly / Either Partner].

3.7 Dispute Resolution

Any dispute arising out of this agreement shall be settled through mutual negotiation. If unresolved within 30 days, the dispute shall be referred to arbitration in accordance with the Arbitration Act, 1940. The seat of arbitration shall be [City, Pakistan].

3.8 Dissolution

The partnership may be dissolved by mutual consent. Upon dissolution, after payment of all liabilities, the remaining assets shall be distributed in accordance with the profit-sharing ratio.

4. EXECUTION AND SIGNATURES

IN WITNESS WHEREOF, the Partners have executed this Deed on the day and year first above written.

First Partner: Signature: __________________________ Name: [Full Legal Name] CNIC: [CNIC Number]

Second Partner: Signature: __________________________ Name: [Full Legal Name] CNIC: [CNIC Number]

Witness 1: ______________________ Name/CNIC: [Details]

Witness 2: ______________________ Name/CNIC: [Details]

---

5. STEP-BY-STEP EXECUTION GUIDE

1. Stamp Paper: Purchase the appropriate value of non-judicial stamp paper from a local district court or authorized stamp vendor. The value varies by province (check the local Stamp Act schedule).
2. Printing: Print the content of this agreement on the stamp paper. Attach additional plain white paper for overflow text if necessary.
3. Execution: Ensure all Partners and two witnesses sign every page of the document.
4. Notarization: Take the signed document to a Notary Public. The Notary will verify identities and attest the signatures.
5. Registration: Visit the Office of the Registrar of Firms in your district. File "Form A" (Statement specifying the particulars of the firm) and "Form B" (Verification) to officially register the firm. This is critical for legal standing in Pakistani courts.
6. NTN/STRN: Once the firm is registered, apply for a National Tax Number (NTN) and Sales Tax Registration (if applicable) through the FBR (Federal Board of Revenue) portal using the registered Partnership Deed.
7. Bank Account: Use the registered Deed and FBR documents to open a corporate business bank account at a commercial bank.