Document background
The MOU for Joint Venture is a crucial preliminary document used in Malaysian business practice when two or more parties intend to explore and establish a joint business venture. This document type serves as a roadmap for negotiations and future collaboration, typically used during the initial stages of business discussions before committing to detailed binding agreements. It outlines fundamental aspects such as proposed ownership structure, management principles, and resource contributions while addressing Malaysian regulatory requirements, including foreign investment restrictions where applicable. The MOU helps parties align their expectations and objectives while maintaining flexibility for detailed negotiations, making it particularly valuable in cross-border ventures where Malaysian companies partner with international entities. While generally non-binding, certain provisions like confidentiality and exclusivity can be made explicitly binding to protect parties during negotiations.
