Foreign Law Firm / Foreign Lawyer in Malaysia
In recent years, the legal market in Peninsular Malaysia has undergone a significant shift towards liberalisation, opening up new opportunities for foreign lawyers to practice in the country. This move towards greater openness and competition has been driven by a desire to enhance the quality of legal services available in Malaysia, as well as to encourage greater foreign investment and participation in the economy. The followings are some FAQ related to this, please contact us for any assistance or recommendation/contact for Malaysian Law Firm who are interested for an international alliance.
GENERAL
Who is a ‘foreign lawyer’ in Malaysia?
A foreign lawyer is a lawyer who is authorized to practice in a country other than Malaysia.
What is a ‘foreign law firm’ in Malaysia?
A foreign law firm is a law firm which provides legal services with regards to laws other than Malaysian law and is licensed to practice in a country other than Malaysia.
Are foreign lawyers allowed to practice in Malaysia?
Yes, foreign lawyers are allowed to practice in Malaysia either in a Qualified Foreign Law Firm (QFLF), an International Partnership (IP) or a Malaysian law firm. However, foreign lawyers must first obtain a certificate of registration as a foreign lawyer.
Are foreign lawyers allowed to join Malaysian law firms?
Yes, foreign lawyers may be employed in a Malaysian law firm who holds a license to employ foreign lawyers.
Are foreign law firms allowed to set up and practice in Malaysia?
Yes, foreign law firms may set up and practice in Malaysia either by partnering with a Malaysian law firm to operate an International Partnership or by itself practicing as a Qualified Foreign Law Firm. If you need any assistance to set up a foreign law firm in Malaysia, please do not hesitate to contact us.
PERMITTED PRACTICE AREA
What are the criteria that a foreign law firm or foreign lawyer must have to practice in Malaysia?
Foreign law firms and foreign lawyers must have the relevant legal expertise and experience in the permitted practice areas.
What are the areas of law that a foreign law firm or a foreign lawyer is allowed to practice in?
- International Partnerships, Qualified Foreign Law Firms and foreign lawyers employed by Malaysian law firms are only allowed to practice in the permitted practice areas.
- Permitted practice areas are those involving: (a) transactions which are regulated by Malaysian law AND at least one other national law; or (b) transactions regulated solely by any law other than Malaysian law.
What are the areas of law that are reserved only for Malaysian lawyers?
The areas of law that are reserved for Malaysian lawyers and are excluded from the permitted practice areas are:
- constitutional and administrative law;
- conveyancing;
- criminal law;
- family law;
- succession law (including wills, intestacy, probate and administration);
- trust law, where the settlor is an individual, and the law relating to charities and foundations, whether the settlor is an individual or a corporation;
- retail banking, including corporate or commercial loans to small and medium enterprises;
- registration of patents and trademarks;
- appearing or pleading in any court of justice in Malaysia;
- representing a client in any proceedings instituted in such a court or giving advice; and
- appearing in any hearing before a quasi-judicial or regulatory body, authority or tribunal in Malaysia.
If you wish to collaborate with any local law firms in Malaysia for the above areas of law, please do not hesitate to contact us.
LICENSES & ITS APPLICATION
What are the types of licenses that will allow a foreign law firm to practice in Malaysia?
The type of licenses that will allow a foreign law firm to practice in Malaysia is a Qualified Foreign Law Firm license or an International Partnership license.
What are types of licenses that will allow a foreign lawyer to practice in Malaysia?
Foreign lawyers can apply to the Bar Council to be registered as foreign lawyers if they wish to practice in a Qualified Foreign Law Firm, an International Partnership or a Malaysian law firm.
How should a foreign lawyer or a foreign law firm apply for license?
- Foreign lawyers or foreign law firms wishing to practice in Malaysia should apply to the Bar Council for the relevant license using the forms provided in the Legal Profession (Licensing Of International Partnerships And Qualified Foreign Law Firms And Registration Of Foreign Lawyers) Rules 2014.
- Foreign lawyer or foreign law firm who wishes to practice in Malaysia may also contact us for any assistance.
How will the application be decided?
- The Bar Council will refer the application to the Selection Committee for its consideration on a case-by-case basis.
- The Bar Council will then grant or refuse the application based on the Selection Committee’s recommendation.
Who sits on the Selection Committee?
The Selection Committee is co-chaired by the Attorney General and the President of the Malaysian Bar and will have three other members – one to be appointed by the Attorney General from the public sector and two members of the Malaysian Bar practicing in the permitted practice areas relevant to the applicant’s intended practice area.
What is the validity period of the licenses for International Partnership and Qualified Foreign Law Firm?
The licenses will be valid for a period of three years and are renewable.
Can the licenses for International Partnership and Qualified Foreign Law Firm be renewed?
Yes, an IP or QFLF may apply to the Bar Council for renewal of the license and upon payment of a prescribed fee.
Malaysian law firms employing foreign lawyers
Are Malaysian law firms allowed to employ foreign lawyers?
Yes, a Malaysian law firm may employ foreign lawyers provided they have obtained a license to do so. If apply for the license for the employment of foreign lawyers, please do not hesitate to contact us.
What is the procedure for a Malaysian law firm to employ a foreign lawyer?
- The Malaysian law firm must apply to the Bar Council for a license to employ foreign lawyer.
- The Bar Council will refer the application to the Selection Committee to consider.
- The Bar Council will then grant or refuse the application based upon the Selection Committee’s recommendation.
Foreign lawyer or foreign law firm who wishes to practice in Malaysia may also contact us for any assistance.
How long is the validity period of the license to employ a foreign lawyer?
The license will be valid for 3 years.
What area of law will the foreign lawyer employed in a Malaysia law firm be allowed to practice in?
The foreign lawyer will only be allowed to practice in the permitted practice areas.
How many foreign lawyers is a Malaysian law firm allowed to employ?
The Malaysian Bar has recommended that not more than 30% of the total number of lawyers in a Malaysian firm should be foreign lawyers. However, the Selection Committee may decide otherwise during their consideration of the application.
QFLF
Will a QFLF be free to determine its own composition?
The Malaysian Bar has recommended that 30% of the total number of lawyers in a QFLF should be Malaysian lawyers. However, the Selection Committee may decide otherwise during their consideration of the application.
What is a ‘qualified foreign law firm’?
a. A qualified foreign law firm (QFLF) is a foreign law firm that is licensed to set up and practice in Malaysia in accordance with s. 40G of the LPA.
What are the criteria that a qualified foreign law firm must have to practice in Malaysia?
A qualified foreign law firm must have the relevant expertise and experience in international Islamic finance in order to qualify for a QFLF license.
How many QFLF licenses will the Bar Council grant?
The Bar Council will begin with an initial offering of only five QFLF licenses. The QFLF license was created to support the Malaysian International Islamic Financial Centre initiative. Accordingly, QFLF license will only be granted to foreign law firms with an expertise in international Islamic finance.
Are Malaysian lawyers allowed to be employed in a QFLF?
a. Yes, however, a Malaysian lawyer employed in a QFLF will be disqualified from obtaining a Practicing Certificate under Part III of the Legal Profession Act 1976.
Does the foreign equity partner of the QFLF need to reside in Malaysia?
At least two equity partners of the QFLF must reside in Malaysia for not less than 182 days in any calendar year.
Are there any other conditions placed on QFLF in regards to the permitted practice area?
The Bar Council’s Guidance Notes have specified that any aspect of work which is regulated by Malaysian law must be done together with an external Malaysian lawyer holding a valid Practicing Certificate. Please do not hesitate to contact us if you have any queries about QFLF requirement.
INTERNATIONAL PARTNERSHIP/ ALLIANCE
What is an ‘international partnership’?
An international partnership is a partnership between a foreign law firm and a Malaysian law firm. Accordingly, the name of the partnership should be a combination of the names of the foreign and Malaysian law firm.
Will an international partnership be free to determine its equity arrangement and internal voting rights?
The Malaysian Bar has recommended that in an International Partnership, the Malaysia law firm should not have less than 60% of the IP’s equity and voting rights. Further, the total number of Malaysian lawyers in the IP should also be at 60%. However, the Selection Committee may decide otherwise during their consideration of the application.
Does the foreign equity partner of the international partnership need to reside in Malaysia?
a. The foreign equity partner of the international partnership (who must also be the equity partner of the foreign law firm) must reside in Malaysia for not less than 182 days in any calendar year.
What are the criteria that an international partnership must have to operate in Malaysia?
Both the international law firm and the foreign law firm in an international partnership must have the relevant legal expertise and experience in their permitted practice areas.
What is the procedure to apply for an international partnership license?
The Malaysian law firm and the foreign law firm should make a joint application to the Bar Council together with their 3-year Business Plan.
Any law firm who wishes to practice in Malaysia may also contact us for any assistance or recommendation/contact for Malaysian Law Firm who are interested for an international partnership license.
REGISTRATION OF FOREIGN LAWYERS
Do foreign lawyers have to register as such in Malaysia before practicing?
All foreign lawyers, whether they are working in an international partnership, a qualified foreign law firm or a Malaysian law firm, must register as a foreign lawyer in accordance with Section 40J of the LPA 1976. Please do not hesitate to contact us if you need any assistance in the registration of foreign lawyers.
What are the criteria that a foreign lawyer must meet?
The foreign lawyer should possess a valid and subsisting license to practice law in a country other than Malaysia. Further, the foreign lawyer should be of good reputation and should not be subject to any disciplinary proceedings or have been previously involved in any disciplinary offence.
What is the validity period of the certificate of registration as a foreign lawyer?
The certificate of registration will be valid for 12 months from the date of issue.
Does the certificate of registration as a foreign lawyer need to be renewed?
The registration will have to be renewed annually.
Do foreign lawyers have to reside in Malaysia?
Foreign lawyers working in International Partnerships and Qualified Foreign Law Firms must reside in Malaysia for not less than 182 days in any calendar year.
Do foreign lawyers have to comply with the Legal Profession Act 1976 and other such rulings and directives affecting advocates and solicitors in Malaysia?
All foreign lawyers will have to comply with the same rules and regulations governing the local advocates and solicitors in Malaysia.
http://www.federalgazette.agc.gov.my/outputaktap/20120920_A1444_BI_BI%20A1444.pdf
http://www.malaysianbar.org.my/laws/lpa.pdf http://www.malaysianbar.org.my/trade_in_legal_services_formerly_known_as_gats/liberalisation_of_legal_services.html
http://www.malaysianbar.org.my/trade_in_legal_services_formerly_known_as_gats/application_forms.html
http://www.malaysianbar.org.my/press_statements/press_release_%7C_foreign_law_firms_and_foreign_lawyers_now_permitted_to_practise_in_peninsular_malaysia.html