STARTING YOUR OWN LAW FIRM IN SABAH

First published 2020. Updated 2025.

March 2020 was supposed to be an ordinary month. Then the Movement Control Order came into effect on March 18th, and overnight, the legal profession — like everything else — changed shape. I wrote the original version of this article in those early weeks, for lawyers who had suddenly found themselves without a firm to go back to.

Five years on, the MCO is behind us. But the questions remain. Associates let go during restructuring. Pupils whose chambering seats disappeared. Senior lawyers exhausted by a litigation-heavy practice who wonder if there is another way. If any of that describes you, this article is still for you.


Before you decide: know your reason

Opening a law firm is a business decision, not just a professional one. The risks are real — chief among them, professional negligence. So before you do anything else, get honest with yourself about why you want to do this.

If your reason is financial survival, build a business plan before you build a letterhead. If you want to keep your licence active while pursuing other income, consider asking a trusted colleague to park your practising certificate at their firm — many sole proprietors will agree to this, provided you conduct yourself in a way that protects their reputation.

If you are genuinely undecided, consider a structured apprenticeship first. Approach a firm that practises in areas you find meaningful and propose an arrangement: a modest salary in exchange for learning the business side of practice, not just the legal craft. Many sole proprietors will say yes, particularly if you are transparent and hardworking. In that arrangement, both of you win.


If you are ready: here is how

Only steps 2 and 3 below are mandatory under the rules. The rest is hard-won advice.

1. Write your business plan

Know your why (vision) and your how (mission). Identify your unique value — what kind of lawyer do you want to be, and for whom?

One thing worth building into your plan from the start: your approach to dispute resolution. The legal profession in Malaysia is shifting. Mediation and collaborative practice are no longer niche — they are increasingly the preferred first step for family disputes, commercial disagreements, and community matters. If you are open to it, consider designing your firm around a mediation-first philosophy from day one. It is better for clients, less adversarial for you, and a genuine differentiator in a crowded market.

As for marketing: it remains a restricted activity for advocates. But doing excellent work and communicating clearly with your clients is available to all of us. Happy clients refer other clients. Empowered clients — ones who understand the process and feel genuinely heard — refer the best ones.

2. The prerequisites

  • Firm name: Must comply with the Sabah Law Society (SLS) naming rules. Get approval from the Bar and the High Court in Sabah & Sarawak before proceeding.
  • Bank accounts: You will need both an office account and a client trust account. Refer to the Advocates Accounts Rules 1988 for the rules on trust account administration. The SLS can assist if you are unsure.
  • Professional indemnity insurance: Mandatory. Shop around — the providers and their offerings have evolved considerably since 2020.
  • Contact and communications: Decide on mobile vs. landline, and whether you need a fax line (internet fax services are now widely available and more practical than a physical fax machine). For email, a custom domain address looks more professional than a free Gmail account, and the cost is minimal.
  • Website: You are required to comply with the Bar’s rules on law firm websites. Keep it simple and accurate. A clean, professional site with your practice areas and contact details is sufficient.
  • Digital practice tools: Unlike in 2020, you now need to be set up for e-filing (eKSS), virtual hearings, and MyKejara from the outset. Factor these into your setup costs and learning curve.
  • Office space: Home office, co-working space, or a rented premises — all remain viable. Choose based on your practice area and how much you expect to meet clients in person.
  • Staffing: If you are appearing in court regularly, you will need someone to hold the fort. Even a part-time arrangement is worth building into your plan early.

3. Register your firm

Once your prerequisites are in place, you can commence practice. The process:

  1. Obtain name approval from the Sabah Law Society.
  2. Prepare your commencement letter on your new firm’s letterhead, stating: date of commencement, office address, telephone number, fax number (if any), email address, website (if any), and office hours.
  3. Serve the letter on the High Court in Sabah & Sarawak (the Kota Kinabalu registry accepts service on behalf of the High Court).
  4. Send copies to: the President of the Sabah Law Society; the State Attorney-General’s Chambers; the Federal Attorney-General’s Chambers; the Registrars of the High Courts in Kota Kinabalu, Sandakan, and Tawau; and the Directors of the Inland Revenue Board, Insolvency Department, Lands and Surveys Department, and Suruhanjaya Syarikat Malaysia (SSM).
  5. Send copies to all other legal firms in Sabah.

Note: Verify the current list of required recipients with the SLS before sending — procedures are occasionally updated.

4. Work

That is it. You are in business.

Follow your plan, and adjust it as reality teaches you things your plan did not anticipate. Find mentors — one for the legal side, one for the business side, or ideally someone who covers both. Senior lawyers in Sabah have been, in my experience, remarkably generous with their time and knowledge. Ask boldly.

And ask questions — of many people, not just one. Then make your own decisions. The whole point of setting up on your own is to practise law in a way that only you can.


A note from five years on

I wrote the original version of this article in the middle of uncertainty, for lawyers navigating a crisis they did not choose. Looking back, the advice holds. What I would add now is this: the profession is changing faster than most of us expected. The lawyers who are finding the most satisfaction — and the most sustainable practices — are the ones who designed their firms around what they actually believe in, not just what was available.

If that is mediation, build toward it. If it is community legal work, let that shape everything from your fee structure to your office location. If it is something else entirely, trust that instinct.

Solo practice is not for everyone. But if it is for you, there has never been more room to do it on your own terms.


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