Finders Agreement Template for Malaysia

A Finders Agreement is a specialized contract that governs the relationship between you as a principal and a finder who will identify and introduce specific business opportunities, potential investors, or strategic partners. In Malaysia's competitive business landscape, these agreements provide essential legal protection and clarity for both parties while ensuring compliance with local commercial laws.

When do you need this document?

You need a Finders Agreement when engaging individuals or companies to locate investment opportunities, identify potential business partners, or source specific assets or services on your behalf. This is particularly common when expanding into new markets, seeking joint venture partners, or requiring specialized industry connections that you cannot access directly. Investment advisors, business brokers, and intermediary companies often work under these agreements to connect principals with suitable opportunities. The agreement becomes crucial when substantial finder's fees are involved or when the finder will have access to confidential business information during their search process.

Key legal considerations

Your Finders Agreement must clearly define what constitutes a successful introduction and the specific criteria that trigger payment of finder's fees. Include detailed provisions on confidentiality to protect sensitive business information shared with the finder, and incorporate non-circumvention clauses to prevent the finder from bypassing you in future dealings with introduced parties. The agreement should specify the duration of the finder's rights to compensation, particularly important if deals are completed after the agreement expires. Consider including anti-money laundering compliance clauses if the finder will be involved in financial transactions, and ensure clear terms regarding expense reimbursement and payment schedules. Territorial limitations and exclusivity provisions should be carefully drafted to avoid conflicts with other finders or internal business development efforts.

Legal requirements in Malaysia

Under Malaysian law, your Finders Agreement must comply with the Contracts Act 1950, ensuring proper contract formation with clear offer, acceptance, and consideration. If the finder's services involve securities or investment arrangements, the agreement must align with the Capital Markets and Services Act 2007, which regulates financial intermediary activities. Payment terms must consider the Income Tax Act 1967, particularly withholding tax obligations for payments to non-resident finders. The agreement should incorporate anti-money laundering compliance measures as required under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. Ensure proper identification of all parties with Malaysian company registration numbers where applicable, and include governing law and jurisdiction clauses specifying Malaysian courts. Consider whether the finder requires any specific licenses or registrations under Malaysian law to provide the contemplated services legally.