Here partners are free to chose any name as they wish subject to following conditions

1. The names must not be too identical or similar to the name of another existing firm doing similar business so as to lead to confusion. The reason for this rule being that the reputation or goodwill of a firm may be injured, if a new firm could adopt an allied name.
2. Name must not contain words like crown, emperor, Empress, Empire or words expressing or implying the sanction, approval or patronage of government except when the state government signifies its consent in writing to the use of such words as part of the firm name [Section 58(3)]

The document in which the respective rights and obligations of the members of a partnership is written is called the Partnership Deed.

A partnership deed agreement may be written or oral. However, practically oral agreement does not have any value for tax purposes and therefore the partnership agreement should be written.

The following are the essential characteristics of a partnership deed:-

• Name and Address of the firm as well as all the partners
• Nature of business to be carried on
• Date of Commencement of business
• Duration of Partnership (whether for a fixed period/project)
• Capital contribution by each partner
• Profit sharing ratio among the partners

The above are the minimum essentials which are required in all partnership deeds. The partners may also mention any additional clauses. Some of the examples of additional clauses which may be mentioned in the partnership deed are mentioned below:-

• Interest on Partner’s Capital, Partners’ Loan, and Interest, if any, to be charged on drawings.
• Salaries, Commissions etc, if any, payable to partners
• Method of preparing accounts and arrangement for audit
• Division of task and responsibility i.e. the duties, powers and obligations of all the partners.
• Rules to be followed in case of retirement, death and admission of a partner.