Partnership act

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cvmashru (Querist)
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22 November 2013 Three doctors wants to start practice in same building. They wants to practice individually and therefore they want to share expenses. My questions are as under:
(1) Can they have memorandum of understanding to share the expenses?
(2) Can they share expenses in equal ratio or according to ratio of receipt?
(3) Is there any draft is available in any book regarding sharing the expenses?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 1. regarding sharing of expense, it can be captured in the profit sharing ratio itself.

2. it can be any ratio.

3. it is advisable that you fix a profit sharing ratio. expenses are anyways shared in that ratio only.

cvmashru

cvmashru (Querist)
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22 November 2013 There is no partnership deed and they do not intend to start the practice in partnership. They want to practice individually but in the same building. Please provide specific answer.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 well your query was titled "Partnership Act"

in case you dont want a partnership, you may just sign an agreement/MOU listing out the possible expenses and the sharing ratio such as rent, maintenance, electricity, water, etc etc. the sharing can be based on the hours each doctor uses the said office, rent can be shared on the basis of space utilized etc etc

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