Example of Partnership Agreement in Malaysia

In Malaysia, partnerships are a popular business structure chosen by entrepreneurs who want to share resources and responsibilities. When setting up a partnership, it is essential to have a well-drafted partnership agreement that outlines the terms and conditions of the partnership. This article will provide an example of a partnership agreement in Malaysia.

Partnership Name and Purpose

The agreement should begin by stating the name of the partnership and the purpose for which it is being formed. For example, «The partnership shall be known as ABC Enterprise and shall engage in the business of retailing fashion apparels and accessories.»

Term and Renewal

The partnership agreement should specify the duration of the partnership and the process for renewal. For example, «The partnership shall commence on January 1, 2021, and shall continue until December 31, 2021. The partnership shall renew for successive one-year terms unless terminated by either partner upon giving three months` written notice.»

Capital Contributions and Profit Sharing

The partnership agreement should specify the capital contributions made by each partner and the percentage of profits each partner will receive. For example, «Partner A shall contribute RM50,000, and Partner B shall contribute RM30,000 towards the partnership capital. The profits and losses of the partnership shall be shared equally between the partners.»

Management and Operation

The partnership agreement should outline the responsibilities and duties of each partner and the process for decision-making. For example, «Partner A shall be responsible for the day-to-day management of the business, while Partner B shall oversee the financial management. All major decisions affecting the partnership shall require the unanimous consent of both partners.»

Dissolution and Termination

The partnership agreement should detail the circumstances that could lead to the dissolution of the partnership and the process for termination. For example, «The partnership shall dissolve upon the death or bankruptcy of either partner. Either partner may terminate the partnership by providing six months` written notice to the other partner.»


A well-drafted partnership agreement is essential to avoid disputes and ensure smooth business operations. It is essential to seek legal advice when drafting a partnership agreement to ensure compliance with Malaysian laws and regulations. This example of a partnership agreement in Malaysia only serves as a guide, and the agreement should be tailored to the specific needs and requirements of the partnership.

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