Agreement questions, answered.

Cover contribution, profit and loss sharing, management authority, remuneration, banking, admission and exit of partners, dispute resolution and closure. Use terms that match the partners’ business arrangement.

Treat a template as a starting point. A generic agreement may not deal with your decision-making, exit settlement, intellectual property or funding arrangements. Review these before signing.

It records an agreed change to the existing agreement. Identify the original agreement, the clauses being changed and the effective terms. Check whether Form 3 and any event-based filing are required.

Section 23 and the First Schedule provide default rules for matters not covered by agreement. Those defaults may differ from what the partners expect, so important commercial terms should be written clearly.

Do not assume they are. Record the agreed contribution and profit-sharing ratio separately and ensure the agreement, books and applicable filings are consistent.

No. The First Schedule does not give a partner automatic remuneration for managing the business. Include an agreed remuneration clause where intended, and separately check its tax treatment.

No. The First Schedule does not allow a majority to expel a partner unless an express agreement gives that power. Review the clause, grounds and procedure before attempting removal.

Yes, it is sensible to specify how disputes will be handled. Define the procedure clearly and obtain appropriate advice for arbitration, deadlock or a contested exit.

Yes. Keep clear written records of approvals and authority. Where First Schedule defaults apply, decisions are to be recorded in minutes within 30 days and kept at the registered office.

Specify how contribution, accumulated profit or loss, outstanding advances and liabilities will be settled. Address valuation, payment timing, business records, confidentiality and continuing obligations.

Do not create a false execution date. Record the actual facts and distinguish execution from any properly agreed effective date. Assess filing consequences from the real event and applicable requirements.

No. Execution, applicable stamp duty and the required MCA filing are separate checks. A notarised document should not be treated as proof that all filing requirements are complete.

Check names, LLPIN, partner identity details, dates, contribution totals, profit ratios, authority and exit terms. Ensure annexures and signature pages belong to the same final version.