Partnership Agreement Template Word Pakistan

PARTNERSHIP AGREEMENT

DOCUMENT CONTROL

• Effective Date: [Date]
• Version: 1.0
• Jurisdiction: Islamic Republic of Pakistan
• Governing Law: Partnership Act, 1932

LEGAL DISCLAIMER This document is a general template drafted for convenience and operational utility. It does not constitute specific legal advice. Given the nuances of the Partnership Act, 1932 and local provincial registration requirements in Pakistan, it is mandatory to have this document reviewed by qualified legal counsel to ensure compliance with specific business objectives and tax obligations under the Federal Board of Revenue (FBR) and SECP (where applicable).

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1. PARTIES

This Partnership Agreement ("Agreement") is entered into this [Day] of [Month], [Year] by and between:

1. [Partner A Name], holder of CNIC No. [Number], residing at [Full Address], hereinafter referred to as "First Partner".
2. [Partner B Name], holder of CNIC No. [Number], residing at [Full Address], hereinafter referred to as "Second Partner".

2. BUSINESS PARTICULARS

• Firm Name: [Name of the Partnership Firm]
• Principal Place of Business: [Full Address in Pakistan]
• Nature of Business: [Description of Trade/Service]
• Commencement Date: [Date]

3. CAPITAL CONTRIBUTION

Each partner shall contribute to the initial capital of the Firm as follows:

• First Partner: PKR [Amount] (Rupees [Amount in Words])
• Second Partner: PKR [Amount] (Rupees [Amount in Words]) Additional capital shall be contributed as mutually agreed in writing.

4. PROFIT AND LOSS SHARING

Net profits and losses shall be distributed between the partners in the following ratio:

• First Partner: [Percentage]%
• Second Partner: [Percentage]%

5. MANAGEMENT AND AUTHORITY

• Decision Making: Major policy decisions shall require the unanimous consent of all partners.
• Banking: The Firm’s bank account(s) shall be operated jointly/severally by [Name(s)].
• Duty of Care: Each partner shall devote their full time and attention to the business of the Firm and act in good faith.

6. ACCOUNTING AND TAXATION

• Financial Year: The financial year of the firm shall close on June 30th of each calendar year.
• Books of Accounts: Proper books of accounts shall be maintained at the principal place of business, accessible to all partners at all times.
• Tax Compliance: The Firm shall be registered with the FBR for NTN/GST purposes as required by law.

7. DISSOLUTION AND RETIREMENT

• Notice Period: A partner intending to retire must provide [Number] months' written notice.
• Death/Incapacity: The partnership shall not automatically dissolve upon the death of a partner, provided the legal heirs elect to continue, subject to a new deed of partnership.

8. DISPUTE RESOLUTION

Any dispute arising out of this Agreement shall be settled through mediation. If mediation fails, the dispute shall be referred to arbitration in [City, Pakistan] under the Arbitration Act, 1940.

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EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

First Partner: Signature: __________________________ Name: [Full Name] Date: [Date]

Second Partner: Signature: __________________________ Name: [Full Name] Date: [Date]

Witness 1: ______________________ (Name/CNIC) Witness 2: ______________________ (Name/CNIC)

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STEP-BY-STEP EXECUTION GUIDE

1. Stamp Paper: Purchase appropriate value Non-Judicial Stamp Paper (as per the Stamp Act, 1899 applicable in your specific province—e.g., Punjab, Sindh, KPK, or Balochistan).
2. Drafting: Print the text of this Agreement onto the Stamp Paper (or append the paper to a legal bond).
3. Execution: Each partner must sign every page of the document. Signatures should be witnessed by two independent persons with their CNIC numbers clearly stated.
4. Notarization: Take the signed document to a Notary Public to verify the identity of the signatories and authenticate the document.
5. Firm Registration: Under the Partnership Act, 1932, registration is optional but highly recommended. Apply to the Registrar of Firms in your relevant district.
6. Tax Registration: Once the partnership is formed, apply for a Partnership NTN (National Tax Number) via the FBR IRIS portal to ensure legal tax filing capabilities.
7. Bank Account: Open a Corporate Bank Account in the name of the firm, providing the registered Partnership Deed and the NTN certificate to the bank.