So, you want to start a partnership, eh?
Well, here are some things you must know about partnerships before jumping into it!
What is a partnership?
Partnership is a relationship between two or more people doing business in common with the aim of getting a profit (s.3(1) Partnership Act 1961).
The Partnership Act 1961 (PA 1961) regulates partnerships throughout Malaysia.
How do you start a partnership?
You can form a partnership through a written agreement or even orally.
If it is written, you can create a partnership through a simple partnership agreement.
The object of the partnership must be lawful. So, a partnership agreement to smuggle duty-free cigarettes is a big NO-NO!
How long does a partnership lasts?
You and your partner can decide on how long you want it to last.
If there is no fixed time, any partner can end the partnership by giving notice to the other party — s.28(1) PA (partnership at will).
What if your partnership continues after the fixed term has ended? The rights and duties of the partners remains the same (s.29 PA).
How do I register with the SSM?
You just need to complete Form A (Business Registration Form)
You MUST register using trade name by filling in Form PNA.42 (Business Name Approval Form) and paying RM60 fee per year.
You can register your partnership for one to five years.
You'll get your Business Registration Certificate within 1 hour of payment.
There you have it...You are good to go!