Document background
The Profit Sharing Agreement Between Partners is a fundamental document for businesses operating under Malaysian jurisdiction, particularly those structured as partnerships under the Partnership Act 1961. This agreement is essential when two or more parties wish to formalize their business relationship and establish clear mechanisms for sharing profits and losses. It becomes particularly relevant when partners are contributing different levels of capital, expertise, or resources to the business. The agreement addresses crucial aspects such as profit calculation methods, distribution timing, partner responsibilities, and management rights, while ensuring compliance with Malaysian tax regulations and business laws. It serves as a vital tool for preventing future disputes and providing clarity on financial arrangements between partners.
