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Partnership Agreement Between Two Individuals for Malaysia

Partnership Agreement Between Two Individuals Template for Malaysia

A comprehensive legal agreement governed by Malaysian law, specifically the Partnership Act 1961, that establishes and regulates a partnership between two individuals. This document outlines the essential terms of the partnership, including capital contributions, profit sharing, management responsibilities, and operational procedures. It provides a legal framework for the partnership's formation, operation, and potential dissolution while ensuring compliance with Malaysian partnership regulations and protecting both partners' interests through clearly defined rights and obligations.

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Partnership Agreement Between Two Individuals

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What is a Partnership Agreement Between Two Individuals?

This Partnership Agreement Between Two Individuals is essential for any two persons looking to establish a formal business partnership in Malaysia. The document is designed to comply with the Malaysian Partnership Act 1961 and related legislation, providing a comprehensive framework for the partnership's operation. It becomes necessary when two individuals decide to combine their resources, expertise, or capital to conduct business together. The agreement covers crucial aspects such as capital contributions, profit-sharing arrangements, management responsibilities, decision-making processes, and dispute resolution mechanisms. It serves as a vital tool for preventing future disagreements by clearly documenting the partners' intentions and obligations at the outset of their business relationship. This document is particularly important in the Malaysian context, where partnership agreements must align with specific local legal requirements and business practices.

What sections should be included in a Partnership Agreement Between Two Individuals?

1. Parties: Identifies and provides full details of the partners entering into the agreement

2. Background: Sets out the context and intention of the partners to form a partnership

3. Definitions: Defines key terms used throughout the agreement

4. Partnership Formation: Establishes the creation of the partnership and its commencement date

5. Business of the Partnership: Describes the nature and scope of the partnership business

6. Capital Contributions: Details the initial and any ongoing capital contributions required from each partner

7. Profit and Loss Sharing: Specifies how profits and losses will be distributed between partners

8. Management and Decision Making: Outlines the management structure and decision-making processes

9. Partners' Duties and Obligations: Sets out the responsibilities and obligations of each partner

10. Banking and Financial Matters: Establishes procedures for banking, accounting, and financial management

11. Restrictions on Partners: Details any restrictions on partners' activities, including non-compete provisions

12. Term and Termination: Specifies the duration of the partnership and conditions for termination

13. Dissolution and Winding Up: Procedures for dissolving the partnership and distributing assets

14. Dispute Resolution: Mechanisms for resolving disputes between partners

15. Governing Law: Specifies that Malaysian law governs the agreement

What sections are optional to include in a Partnership Agreement Between Two Individuals?

1. Intellectual Property Rights: Include when the partnership involves creation or use of intellectual property

2. Good Will: Include when there is existing goodwill being brought into the partnership or specific provisions for handling future goodwill

3. Insurance: Include when specific insurance requirements need to be maintained

4. Employment of Partners: Include when partners will be employed by the partnership

5. Admission of New Partners: Include when there's possibility of adding new partners in the future

6. Death or Incapacity of Partners: Include detailed provisions for handling death or incapacity situations

7. Assignment and Transfer: Include when transfer of partnership interests needs to be regulated

8. Confidentiality: Include when dealing with sensitive business information or trade secrets

What schedules should be included in a Partnership Agreement Between Two Individuals?

1. Schedule 1: Capital Contributions: Detailed breakdown of each partner's initial capital contributions

2. Schedule 2: Profit Sharing Ratios: Detailed breakdown of profit and loss sharing arrangements

3. Schedule 3: Partner Details: Complete personal and contact information for all partners

4. Schedule 4: Business Plan: Initial business plan and objectives of the partnership

5. Schedule 5: Banking Arrangements: Details of partnership bank accounts and authorized signatories

6. Appendix A: Asset Register: List of all assets contributed to or owned by the partnership

7. Appendix B: Operational Procedures: Detailed procedures for day-to-day operations and management

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions






















Clauses




























Relevant Industries

Professional Services

Retail

Food and Beverage

Technology

Construction

Consulting

Real Estate

Healthcare

Education

Manufacturing

Agriculture

Creative Industries

Relevant Teams

Legal

Compliance

Corporate Secretarial

Business Development

Finance

Operations

Risk Management

Corporate Affairs

Relevant Roles

Business Owner

Entrepreneur

Legal Counsel

Company Secretary

Business Development Manager

Managing Partner

Financial Controller

Operations Manager

Risk Manager

Compliance Officer

Business Advisor

Partnership Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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