Bare Act: Read the Act carefully to understand its sections and meanings.
Written Partnership Agreement: Written agreement prevents future misunderstandings and disputes between partners. Execute a written partnership agreement outlining the partnership’s terms and conditions.
Complete the Registration Process of the Partnership Firm: Register the partnership firm to avoid future disputes and take advantage of certain legal benefits.
Clear and Unambiguous Partnership Agreement: The partnership agreement must have unambiguous terms to avoid future disputes.
Maintain Proper Accounts of All Transactions: The Act requires every partnership firm to maintain proper accounts of its transactions.
Dissolve the Partnership Appropriately: The Act provides for the dissolution of the partnership in various situations. Partners must follow the procedures outlined in the partnership agreement or the Act.
Seek legal advice when needed: If there is any doubt, seek a legal expert’s advice.