Joint Venture / Partnership Agreement FAQs
Sole proprietorship is a form of business entity which is set up and owned solely by 1 individual only
- Easy to start up with low startup costs.
- Business size is relatively small compared to joint venture & partnership.
A partnership is a form of entity where 2 or more individuals come together to carry out a business. There are 2 types of partnership in Malaysia i.e. the conventional partnership governed by the Partnership Act 1961 and the limited liability partnership (LLP) governed by the Limited Liability Partnership Act 2012. An LLP can be formed by 2 or more individuals or corporations.
A Joint Venture (JV) is an business agreement/relationship entered into by two or more business entities for the purpose of a specific project or other business activity
The greatest advantage of partnership and JV is the ability to pool resources from different parties to achieve greater output than sole effort.
Many partnership and joint ventures fail because there is no proper written agreement to spell out parties rights, obligations and relationship. It’s important to protect your business interest by engaging a lawyer to draft out partnership agreement or JV agreement.