How To Set Up A Law Firm In Malaysia

The information provided beneath is intended to act as a general guideline. It is your responsibility to check that y'all accept fulfilled ALL the necessary statutory requirements for the setting up of your legal practice.

BAR Quango RULINGS

OTHER STATUTORY REQUIREMENTS

SIJIL Almanac AND PRACTICING Document REQUIREMENTS

MERGING YOUR Business firm / CHANGES TO YOUR Business firm

BAR Council RULINGS

The Rules and Rulings of The Bar Council Malaysia must be complied with prior to setting up a firm.

Step 1: Informing The Bar Council

You should write a discover of intention to set up a house to the Bar Quango if you intend to beginning a exercise. This notice must be executed by the intending sole proprietor or all partners (if applicable).

Ruling 7.06 – Setting Up of A New Firm

The notice to Bar Council should incorporate the following particulars:

1. Proposed name;

2. Proposed accost;

3. Proposed date of commencement;

four. Telephone, facsimile numbers and email address of the new business firm.

The Bar Council may then issue either a letter of objection/no objection pursuant to Ruling vii.06(3).

Ruling seven.06 (iii)(a) – Letter of Objection

If the proposed name is already a registered name of another law firm or is not in accordance with Section 85, LPA, the intending sole proprietor or the partners shall exist required to submit a fresh name for approval.

Ruling vii.06 (3)(b) – Letter of the alphabet of No Objection

Bar Council may issue a letter of no objection subject to the following atmospheric condition:

1. The intending sole proprietor/partners is/are in possession of a valid Sijil Almanac and Practising Certificate; and

2. Sole proprietor/partners have obtained the required mandatory Professional Indemnity Insurance (PII) encompass.

Ruling vii.06 (3)(c)– Tape in the System

Upon the issuance of the letter of no objection, the new house and its particulars shall be recorded in the Bar Council Membership Section organisation.

Step 2: Choosing A Firm Proper noun

When choosing a firm name, the following must exist taken into account:

• The firm's name must be identified, and

• Requirements of Section 85, Legal Profession Human activity 1976 (LPA 1976) must exist complied with.

Department 85 of the LPA 1976 stipulates that no firm name shall be registered without a document from the Bar Quango. It allows the Bar Council to decline a certificate for registration on the grounds that the proposed business firm name is likely to be dislocated with a registered firm proper noun or is likely to mislead the public.

The Bar Council has also issued the following rulings governing house names:

Ruling 2.01 (one) – Variant Spelling

Advocate & Solicitor may not use variant spelling of his own name that does non announced in identity card.

Ruling 2.01 (4) – Surname

Firm name may include the surname of an Advocate & Solicitor who is a partner or sole proprietor.

Ruling 2.02 – Vernacular Language

Firm proper noun in vernacular language to be canonical.

Vernacular language of a name requires the approval of Bar Quango.

Ruling 2.03 – Restrictions

Descriptions which are non permitted in firm proper name.

Information technology is non permitted to include academic qualifications, awards and title in a proper name.

Step three: Locating Your Legal Practice

Deciding on the premises of your legal practise involves more than than deciding on which office space y'all should rent out, the size of the infinite and the verbal location. It is pertinent that following Bar Council rulings are taken into account before you lot decide on the location of your premises.

Ruling 7.01(3) – Person in charge of Advocate and Solicitor'south Office

No function of an Advocate and Solicitor or police firm shall exist manned solely or left nether the supervision of a person not holding a valid practising certificate

Ruling 7.01(6) – Operating Hours

The office must be open up during usual role hours and at least five days a week

Ruling seven.02 – Not to carry on practice in client's office

It is impermissible to maintain an office or carry on your legal practice in a customer's part which includes a housing developer's office.

Ruling seven.03 – Sharing Office

Sharing of office premises, whether with another Advocate and Solicitor or not, may exist allowed provided that the office or bounds is partitioned off with split and singled-out entrances, with no connecting door between the two offices or premises.

Ruling 7.04 – Abet and Solicitor may do from his residence

While it is permitted to operate from your residence, it is advisable to see your clients somewhere else.

Y'all should note that if you intend to comport out practice from your residence, you must check if your home can be used for a commercial/business organization purpose.

Arrangements should too be made to protect clients' confidentiality.

Step 4: Displaying Your Nameplate, Signboard and Letterheads

Rulings related to the display of nameplates and signboard

Ruling 2.04 – Display of nameplate and signboard

No nameplate of a law firm shall be placed at the main archway of an Advocate and Solicitor'southward residential premises unless his firm is located at such residence.

Your name plate and signboard must non exist placed on whatever road leading to or on whatsoever route in the vicinity of the police force firm.

Any arrows or signs indicating direction to the constabulary firm is not permitted as well, unless there may be a difficulty in locating such a law firm. However, the arrows/pointers or other signs must be discreet, unobtrusive and compatible with the dignity of the legal profession.

Ruling 2.05 – Lighted nameplate and signboards

Lighted nameplates and signboards are permitted only if these are not incompatible with the dignity of the legal profession.

Rulings related to your letterhead

Ruling 3.01 – Use of colours in letterhead

The apply of colours is permitted provided that it is compatible with the dignity of the legal profession.

Ruling three.02 – Names on letterhead and stationery

1. The name of the sole proprietor or every partner must exist stated on the letterhead

2. Names of legal assistants must exist distinguished from the sole proprietor or partners of the business firm and listed in categories. A person tin simply exist described as a legal banana unless he is an Advocate or Solicitor holding a valid practising document.

3. A Syariah practitioner may but be a sole proprietor, partner, consultant or a legal assistant only if he is an Abet and Solicitor, holding a valid PC. Only then can the name of the Syariah Practitioner appear on the letterhead and stationery of the law firm.

4. An Advocate and Solicitor who has left the firm shall non have his name appear on any letterhead or stationery of the business firm.

v. An Advocate and Solicitor who is temporarily non practising shall not be described equally being "on leave"

6. Any person who is not an Advocate and Solicitor shall not accept his name on the letterhead and stationery of a law firm

7. A registered patent agent who is not an Advocate and Solicitor may non take his name appear on the letterhead and stationery of a law firm.

Ruling 3.03 – "Managing Partner" allowed on business firm'southward letterhead.

The inclusion of the designation "managing partner" on a law business firm's letterhead and jotter is permitted.

Ruling iii.04 – Descriptions or statements non permitted on letterhead and stationery

The following descriptions or statements are not permitted on the letterhead or stationery of a law firm:

1. "Articled clerk"

2. "Counsel"

3. "Loftier Court lawyer" or any other similar colloquial laudatory description of an Advocate and Solicitor

4. "Senior Advocate and Solicitor"

Ruling three.05 – Logo, elaborate or busy script or style permitted

The utilise of any logo, insignia, seal of the firm and any elaborate or decorated script or mode on a constabulary firm's letterhead and stationery is permitted provided that it is in a style which is unobtrusive and not incompatible with the dignity of the legal profession.

Ruling 3.06 – Chinese seal

The use of a Chinese seal is permitted provided it is limited to the name of the law firm and is unimposing, unobtrusive and not incompatible with the dignity of the legal profession

Ruling iii.07 – Chinese graphic symbol (Da)

The Chinese character (Da) which connotes "big" shall not be included on a law firm's letterhead, stationery or signboard.

Ruling 3.08 – Telephone and facsimile numbers

The telephone and facsimile numbers of a law firm must be stated in the house's letterhead

Ruling 5.14 – Company or Corporation's letterhead

The name of an Advocate and Solicitor may be printed on the letterhead and stationery of a company or corporation, provided that he may non be described as an Advocate and Solicitor.

OTHER STATUTORY REQUIREMENTS

The Inland Revenue Board of Malaysia (IRBM)

Things yous need to do:

one. Write to the IRBM that yous are no longer a revenue enhancement payer under the employee category. NB: Ensure that yous inform BOTH the cess branch and the collection branch.

2. Register a "Partnership" File (P File) if applicative. This file will have reference showtime with the alphabet "D xxxxxxxxx"

3. Register an "Employers Remuneration File" (commonly referred to every bit the E File) regardless of whether you have whatever employee/s. As a business possessor, you will be required to submit your yearly reports on remuneration matters before 30 March each year. Failure to do so will outcome in heavy penalties being imposed.

The Imperial Malaysian Customs and Excise Department

• Y'all must register for a service tax licence.

• The RM150,000 threshold for professional person, consultancy and management services has been abolished.

• Professional services that are field of study to service revenue enhancement are accounting, legal, applied science, architecture, survey, valuation appraisal and real estate agency.

• Information technology is an offence to provide a taxable service without a service tax licence.

• Do non consequence an invoice without obtaining your Service Tax Licence.

• Refer to Group Thou, 2nd Schedule, Service Tax Regulations 1975.

Important: In one case the Goods and Services Tax Deed 2009 comes into force, legal firms may no longer be required to charge service tax. This is subject to the registration requirement which provides that businesses with annual sales turnover exceeding RM500,000 are required to register.

Personal Information Protection Act 2010

The Personal Data Protection Act 2010 (PDPA 2010) was passed in 2010 and came into strength on 15 Nov 2022.

By virtue of Department xiv(1) of the PDPA 2010 and the Schedule 2(nine) of the Personal Data Protection (Class Of Data Users) Order 2022, a company registered under the Companies Human activity 1965 or person who has entered into partnership under the Partnership Human activity 1961 conveying out legal services is required to annals as a information user.

Your application for registration should exist accompanied with the prescribed registration fee and the Form fifteen(1)

The registration course can be obtained from the Jabatan Perlindungan Data Peribadi'southward website.

The flowchart below briefly explains the registration process

The following methods of payment are acceptable and should be addressed to "Pesuruhjaya Perlindungan Data Peribadi and crossed out with "A/C Payee but".

• Kiriman Wang (need to find English translation for this)

• Postal Club

• Bank Typhoon

• Check

The above should exist posted or presented to the following address:

Kaunter Pendaftaran

Bahagian Pendaftaran dan Operasi

Jabatan Perlindungan Information Peribadi

Aras 6, Kompleks Kementerian Komunikasi dan Multimedia

Lot 4G9, Persiaran Perdana, Presint 4

Pusat Pentadbiran Kerajaan Persekutuan

62100 Putrajaya

Currently, sole proprietors do not have to register with the Commissioner.

Please notation that whilst registration is but compulsory for legal practices nether the Partnership Act 1961, compliance with the Human activity is compulsory for ALL Members of the Malaysian Bar.

SIJIL Annual "SA" AND PRACTISING Document "PC"

Section 36(ane) & 37 of the LPA stipulates that an Advocate & Solicitor is only permitted to practice if he is in possession of a valid PC, failing which, he is deemed to be an unauthorised person.

Section 29 of the LPA provides that an Advocate & Solicitor'south PC must be renewed annually.

Both SA and PC applications are candy by the Bar Quango secretariat. Note that the:

SA is issued by Bar Council; but
PC is issued nether the hand and seal of the Registrar of the High Court.

The Advocate & Solicitor may obtain the SA application form past the following means:

Downloading from the Malaysian Bar website hither
Collecting a copy from the respective State Bar Committees or Bar Council Secretariat.

The SA Application Checklist available here will provide some information on the type of documents needed and fees imposed when applying for SA.

Once the PC is fix for drove, the Bar Council Secretariat will send a letter to the business firm informing as such. Only authorised representatives will be allowed to collect the PCs. Hence your chosen representative is required to bring along a letter from the firm evidencing that the person is authorised to collect the PCs.

It is prohibited for an Abet or Solicitor to practise without possessing a valid PC. In the event a complaint is received against any Fellow member, the Bar Council may:

Refer the complaint to the Disciplinary Board;
Embark injunction proceedings to prohibit the Member from practising; and
Institute contempt proceedings against the Member concerned for breach of order imposed by the Disciplinary Board prohibiting the lawyer from practice.

To avoid such action beingness taken, the lawyer concerned should immediately cease practice and notify Bar Council in writing, undertaking not to practice awaiting the issuance of a valid SA or PC.

MERGING YOUR Firm/ CHANGES TO YOUR Business firm

If you lot are merging your firm or making a change to the name of your firm, you need to obtain a "Letter of No Objection" from the Bar Council.

Yous are too required to notify the Scheme Brokers of the changes to your business firm.

Information on Professional Indemnity Insurance (PII) formalities with regard to mergers and changes to your firm tin be institute here.