Joint Venture / Partnership Agreement FAQs

What is sole-proprietorship?

Sole proprietorship is a form of business entity which is set up and owned solely by 1 individual only

What are the advantages and disadvantages of sole-proprietorship?

Advantages

  • Easy to start up with low startup costs.

Disadvantages

  • Business size is relatively small compared to joint venture & partnership.
What is 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.

What is Joint Ventures (JV)?

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

What’s the advantages of partnership and JV?

The greatest advantage of partnership and JV is the ability to pool resources from different parties to achieve greater output than sole effort.

Is there a need for partnership agreement and JV agreement?

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.

Further Inquiries?
You may contact our panel lawyers/ the author of this article.

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