Document background
The Partnership Offer Letter is a crucial document in Malaysian business practice, typically used when an existing business or entrepreneur seeks to formalize an invitation to a potential partner to join their venture. This document serves as the preliminary step in establishing a partnership under Malaysian law, particularly adhering to the Partnership Act 1961. It is essential when businesses want to expand their operations, bring in additional expertise or capital, or restructure their ownership. The letter should comprehensively outline the proposed partnership terms while remaining compliant with Malaysian legal requirements, including those from the Companies Commission of Malaysia (SSM). It acts as a precursor to a full partnership agreement and helps establish clear expectations and terms before parties proceed with more detailed negotiations and formal documentation.
