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A Partnership Agreement is a legally binding contract between two or more people who join forces to run a business in Malaysia. It spells out how partners will share profits, losses, and responsibilities, while following the Partnership Act 1961. Think of it as your business's rulebook - covering everything from daily operations to what happens if someone wants to leave.

The agreement protects all partners by clearly defining each person's roles, capital contributions, and decision-making powers. It also sets rules for bringing in new partners, handling disputes, and closing down the business. While not mandatory under Malaysian law, having one prevents misunderstandings and makes it easier to resolve conflicts when they arise.

Create a Partnership Agreement before you start doing business together - ideally during your initial planning discussions. This timing lets you and your partners align on crucial details while everyone is still excited and cooperative, preventing costly disputes later. The agreement becomes especially important when combining different skills, resources, or investment levels in Malaysian business ventures.

Many partners rush to start operations and delay paperwork until problems arise. This approach risks messy legal battles over profit sharing, decision-making authority, or partner exits. Getting the agreement in place early also helps secure business loans, as Malaysian banks often require formal partnership documentation before extending credit.

• Partnership Deed: The most basic form covering profit sharing, management rights, and partner duties for traditional partnerships
• Limited Liability Partnership Contract: Specific to LLPs, protecting personal assets while maintaining partnership benefits
• Partnership Share Agreement: Focuses on equity distribution and profit-sharing arrangements between partners
• Construction Partnership Agreement: Tailored for construction ventures with project-specific terms and risk allocation
• Distributorship Contract: For partnerships focused on product distribution, defining territory and sales terms

• Business Partners: The primary parties who sign and are bound by the Partnership Agreement, including both active managing partners and silent investors
• Corporate Lawyers: Draft and review agreements to ensure compliance with Malaysian partnership laws and protect clients' interests
• Company Secretaries: Handle registration, documentation, and updates to partnership records with the Companies Commission of Malaysia (SSM)
• Accountants: Implement profit-sharing arrangements and maintain financial records according to agreement terms
• Banks and Financiers: Review partnership agreements when considering business loans or credit facilities

• Partner Details: Gather full legal names, MyKad numbers, and contact information for all partners involved
• Business Basics: Decide on partnership name, business address, and main activities aligned with SSM requirements
• Capital Structure: Document each partner's initial investment, profit-sharing ratios, and ongoing financial commitments
• Management Roles: Define key responsibilities, decision-making authority, and voting rights for each partner
• Exit Strategy: Plan procedures for partner retirement, withdrawal, or death, including valuation methods
• Digital Generation: Use our platform to create a legally-sound agreement that includes all essential elements

• Partnership Details: Full legal names of partners, business name, and principal place of business in Malaysia
• Business Purpose: Clear description of partnership activities and scope, following Partnership Act 1961 requirements
• Capital Contributions: Detailed breakdown of each partner's financial and non-financial inputs
• Profit Distribution: Formula for sharing profits, losses, and drawings among partners
• Management Rights: Decision-making processes and voting powers of each partner
• Dissolution Terms: Procedures for partnership termination and asset distribution
• Dispute Resolution: Methods for handling disagreements under Malaysian jurisdiction
• Partner Changes: Rules for admitting new partners or handling partner exits

A Partnership Agreement differs significantly from a Business Acquisition Agreement in several key ways. While both are important business documents in Malaysia, they serve distinct purposes and come into play at different stages of business operations.

• Purpose and Timing: Partnership Agreements establish ongoing business relationships between partners, while Business Acquisition Agreements handle one-time purchases of existing businesses
• Legal Structure: Partnership Agreements create new business entities under the Partnership Act 1961, whereas Acquisition Agreements transfer ownership of existing entities
• Duration: Partnership Agreements govern long-term relationships, while Acquisition Agreements typically conclude once the sale is complete
• Content Focus: Partnership Agreements detail profit sharing and management rights; Acquisition Agreements focus on purchase price, assets included, and transfer terms