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As a professional, I understand the importance of crafting articles that are not only informative but optimized for search engines. Today, we`ll dive into the topic of profit sharing agreements in Malaysia and provide a sample agreement for your reference.

First, let`s define what a profit-sharing agreement is. Simply put, it`s an agreement between two or more parties that outlines how profits from a business venture will be shared. This agreement is essential for ensuring transparency and fairness in any business relationship.

In Malaysia, a profit-sharing agreement is often used in partnerships or joint ventures. The agreement will typically include details such as the percentage split of profits, the duration of the agreement, and the responsibilities of each party.

Below is a sample profit sharing agreement that can be used as a reference for businesses in Malaysia.

Profit Sharing Agreement Sample Malaysia

This Profit Sharing Agreement (the “Agreement”) is made and entered into as of [insert date] by and between [insert company name] (the “Company”), and [insert partner name] (the “Partner”).


WHEREAS, the Company and the Partner wish to engage in a business venture, and

WHEREAS, the parties desire to establish the terms and conditions by which they will share profits derived from the business venture;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable considerations, the parties agree as follows:

1. Nature of Agreement

The parties hereby agree to share any and all profits derived from the business venture in [insert percentage] ratio, with the Company receiving [insert percentage] and the Partner receiving [insert percentage].

2. Duration of Agreement

This Agreement shall commence on the effective date and shall continue until terminated by either party upon [insert number] days written notice to the other party.

3. Responsibilities

The Company shall be responsible for the day-to-day operations of the business venture, including but not limited to, sales, marketing, and product development. The Partner shall provide [insert responsibilities] and shall be responsible for [insert responsibilities].

4. Accounting and Financial Records

The Company shall maintain accurate accounting and financial records related to the business venture and shall provide the Partner with monthly statements.

5. Dispute Resolution

Any disputes arising under this Agreement shall be resolved through mediation.

6. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the Malaysia.

7. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior understandings, agreements, or representations.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

[insert company name]

By: _______________________

[insert partner name]

By: _______________________


In Malaysia, a profit-sharing agreement is essential for any business venture involving partnerships or joint ventures. This sample agreement can serve as a useful reference when creating your own profit-sharing agreement.

Remember, it`s always best to consult with legal professionals when drafting contracts to ensure that they are legally binding and enforceable.