Limited Partnership Agreement Malaysia

A limited partnership agreement is a legal document that outlines the terms and conditions of a limited partnership between two or more parties. In Malaysia, this agreement is governed by the Limited Partnerships Act 1991 and is essential for any business that is interested in forming a limited partnership.

A limited partnership is a business structure in which there are one or more general partners and one or more limited partners. The general partners are fully liable for the debts and obligations of the business, while the limited partners have limited liability. This means that the limited partners are only liable for the amount of money that they have invested in the business.

The limited partnership agreement is a crucial document that outlines the rights and responsibilities of each partner. It also lays out the capital contributions made by each partner, the distribution of profits, and the process for adding or removing partners.

The agreement must contain the following information:

1. Partnership Name and Purpose: The agreement must clearly state the name of the partnership and the purpose for which it is formed.

2. Capital Contributions: The agreement should state the amount of capital each partner is obligated to contribute to the partnership.

3. Profit Distribution: The agreement should outline the method of distributing profits among the partners.

4. Management of the Partnership: The agreement should clearly state who will be responsible for managing the partnership and the extent of their authority.

5. Dissolution of Partnership: The agreement should outline the process for dissolving the partnership and the distribution of assets.

It is essential to have a limited partnership agreement in place to protect the interests of all parties involved. Without a proper agreement, disputes can arise, leading to financial losses and legal action.

In Malaysia, a limited partnership agreement must be filed with the Registrar of Limited Partnerships within 14 days of the formation of the partnership. This is a legal requirement, and failure to comply can result in penalties or the dissolution of the partnership.

In conclusion, a limited partnership agreement is a critical legal document that outlines the terms and conditions of a limited partnership. As a business owner in Malaysia, it is essential to have a proper agreement in place to protect your interests and avoid any legal issues. Ensure that you work with a qualified lawyer to draft a comprehensive agreement that covers all aspects of the partnership.