Partner Admission Deed Format 2026
DEED OF ADMISSION OF PARTNER
(Reconstitution of partnership)
THIS DEED is made at {{execution_place}} on 1 October 2026 BETWEEN:
(1) {{partner1_name}}, residing at {{partner1_address}}, holding PAN {{partner1_pan}}; AND
(2) {{partner2_name}}, residing at {{partner2_address}}, holding PAN {{partner2_pan}};
(hereinafter together referred to as the "Continuing Partners") of the ONE PART; AND
(3) {{new_partner_name}}, residing at {{new_partner_address}}, holding PAN {{new_partner_pan}} (hereinafter referred to as the "Incoming Partner") of the OTHER PART.
WHEREAS the Continuing Partners have been carrying on the business of {{business_nature}} in partnership under the name and style of "{{firm_name}}" (the "Firm") at {{business_address}}, under a Deed of Partnership dated {{original_deed_date}} (the "Existing Deed");
AND WHEREAS the Continuing Partners, being all the existing partners of the Firm, have agreed and hereby consent to admit the Incoming Partner as a partner of the Firm, and the Incoming Partner has agreed to join the Firm, on the terms set out below;
NOW THIS DEED WITNESSETH AND IT IS HEREBY AGREED AS FOLLOWS:
1. Admission
The Incoming Partner is admitted as a partner of the Firm with effect from {{admission_date}} (the "Admission Date"). From the Admission Date the Continuing Partners and the Incoming Partner (together the "Partners") shall carry on the business in partnership on the terms of this Deed.
2. Name, Business and Continuity
The Firm shall continue under the name and style of "{{firm_name}}" at {{business_address}} and shall continue the business of {{business_nature}}. The admission of the Incoming Partner is a change in the constitution of the Firm and not a dissolution; the Firm continues with all its assets, liabilities, registrations, licences, contracts and bank accounts. The partnership shall be a partnership at will.
3. Accounts up to the Admission Date
The books of the Firm have been made up to the day preceding the Admission Date. The profit or loss up to that day belongs to the Continuing Partners in their existing ratio and has been credited or debited to their accounts. ____________ [state whether assets and liabilities have been revalued on admission and, if so, that the revaluation surplus or deficit has been credited or debited to the Continuing Partners in their old ratio; if no revaluation, state "The assets and liabilities continue at their book values"]
4. Capital
The Incoming Partner has brought in ₹{{new_partner_capital}} as capital by banking channels, which stands credited to the Incoming Partner's capital account. The capital of the Partners as on the Admission Date is set out in the Schedule. Further capital shall be brought in by the Partners in such proportion as they may mutually agree.
5. Goodwill
Premium for goodwill payable by the Incoming Partner: ₹. ____________ [state the treatment — e.g. "brought in by the Incoming Partner and credited to the Continuing Partners' capital accounts in their sacrificing ratio" / "paid privately to the Continuing Partners outside the books of the Firm" / "no premium for goodwill is payable"]
6. Profit and Loss Sharing
From the Admission Date, the net profits and losses of the Firm, after providing for interest on capital and remuneration to working partners under Clauses 7 and 8, shall be shared by the Partners in the proportions set out in the Schedule.
7. Interest on Capital
Simple interest at the rate of 12% per annum, or such lower rate as may be the maximum allowable under Section 40(b)(iv) of the Income-tax Act, 1961 or Section 35(e) of the Income-tax Act, 2025, as applicable, shall be paid to each Partner on the amount standing to the credit of that Partner's capital account, and shall be credited before ascertaining the divisible profit.
8. Remuneration to Working Partners
____________ [name the working partners] shall be working partners actively engaged in conducting the affairs of the business of the Firm. The aggregate remuneration payable to all the working partners for each accounting year shall be the maximum amount allowable under Section 40(b)(v) of the Income-tax Act, 1961 or Section 35(e) of the Income-tax Act, 2025, as applicable — namely, on the first ₹6,00,000 of the book profit, or in case of a loss, ₹3,00,000 or 90% of the book profit, whichever is more; and on the balance of the book profit, 60% — and shall be divided between the working partners in the ratio of ____________ [state the ratio]. The Firm shall deduct tax at source on remuneration and interest to Partners under Section 194T of the Income-tax Act, 1961 or Section 393(3) of the Income-tax Act, 2025, as applicable.
9. Liability of the Incoming Partner
In accordance with Section 31(2) of the Indian Partnership Act, 1932, the Incoming Partner shall not be liable for any act of the Firm done before the Admission Date. ____________ [if the Incoming Partner is agreeing to share existing liabilities, say so expressly here; otherwise retain the next sentence] The Continuing Partners shall keep the Incoming Partner indemnified against all debts, liabilities, claims and tax demands of the Firm relating to the period before the Admission Date.
10. Management, Banking and Accounts
All the Partners shall be entitled to take part in the conduct of the business. The bank accounts of the Firm shall be operated by ____________ [state the signatories and whether singly or jointly], and the mandate shall be revised with the bankers accordingly. Proper books of account shall be kept at the principal place of business, shall be open to every Partner, and shall be closed on 31st March each year.
11. Other Terms
Save as modified by this Deed, the terms of the Existing Deed relating to retirement, death, expulsion, arbitration and dissolution shall bind all the Partners, including the Incoming Partner, as if set out in full here. In case of conflict, this Deed prevails. In matters not provided for, the Indian Partnership Act, 1932 shall apply.
12. Intimations
The Partners shall, within the times prescribed: (a) where the Firm is registered, give notice of the change in constitution to the Registrar of Firms under Section 63 of the Indian Partnership Act, 1932; (b) apply for amendment of the Firm's GST registration; (c) intimate the Firm's bankers and other registering and licensing authorities; and (d) furnish a certified copy of this Deed along with the Firm's return of income for the year of change.
13. Stamp Duty
This Deed is executed on non-judicial stamp paper of the value required for an instrument of partnership or reconstitution under the Stamp Act applicable in the State of execution; the duty varies from State to State and in several States is linked to the capital of the firm.
SCHEDULE — Capital and Profit-Sharing Ratio from the Admission Date
| Partner | PAN | Capital as on Admission Date (₹) | Profit share |
|---|
| {{partner1_name}} | {{partner1_pan}} | ____________ | {{partner1_share}} |
| {{partner2_name}} | {{partner2_pan}} | ____________ | {{partner2_share}} |
| {{new_partner_name}} | {{new_partner_pan}} | {{new_partner_capital}} | {{new_partner_share}} |
IN WITNESS WHEREOF the parties have set their respective hands to this Deed on the day, month and year first above written.
_______________________________
{{partner1_name}} (Continuing Partner)
_______________________________
{{partner2_name}} (Continuing Partner)
_______________________________
{{new_partner_name}} (Incoming Partner)
Witnesses
1. Signature: _______________________________
Name: _______________________________
Address: _______________________________
2. Signature: _______________________________
Name: _______________________________
Address: _______________________________
