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Update on Imposition by Local Authorities of Requirement of Licences for Premises and/or Signboards

Circular No 080/2017
D
ated 13 Apr 2017

To Members of the Malaysian Bar
 
Update on Imposition by Local Authorities of Requirement of Licences 
for Premises and/or Signboards (13 April 2017)
 
We refer to the following circulars:
   
(1)    Circular No 051/2015 dated 11 Mar 2015, entitled “Imposition by Local Councils of Requirement of Licences for Premises and/or Signboards”, which informed Members that the Ministry of Urban Wellbeing, Housing and Local Government (“Ministry”) had officially communicated to the Bar Council that law firms are not required to pay for licences for their premises.  However, the Ministry had stated that law firms must apply for signboard licences from the local authorities;
 
(2)    Circular No 116/2016 dated 17 May 2016, entitled “Update on Imposition by Local Authorities of Requirement of Licences for Premises and/or Signboards”, which informed Members that the Bar Council notified Dewan Bandaraya Kuala Lumpur (“DBKL”) and Majlis Bandaraya Shah Alam (“MBSA”) of the Bar Council’s position that law firms are regulated under the Legal Profession Act 1976 and the Legal Profession (Publicity) Rules 2001, and do not come within the definition of “trade, business or industry” under the Local Government Act 1976, and as such there is no requirement for law firms to apply for licences for their signboards; and
 
(3)    Circular No 003/2017 dated 5 Jan 2017, entitled “Update on Imposition by Local Authorities of Requirement of Licences for Premises and/or Signboards (5 Jan 2017)”, which informed Members that DBKL has stated that the Licensing of Trades, Businesses and Industries (Federal Territory of Kuala Lumpur) By-Laws 2016 (“By-Laws 2016”) stipulate that premises that carry out activities of a managing office, which includes law firms, must be licensed.  The circular also informed Members that the Bar Council maintains its position that the legal profession should not be classified as a “trade, business or industry”, and hence law firms are not required to apply for licences for their premises or signboards. 

The Bar Council informed DBKL of its position by letter dated 4 Jan 2017, and requested that DBKL rescind all the notices and/or summons that have been issued to law firms.  We also reiterated our request for a meeting with DBKL in order to arrive at a conclusive resolution of this matter.  A copy of this letter is attached for your reference.  

It has come to the Bar Council’s attention that DBKL is continuing its exercise of requiring law firms based in Kuala Lumpur to apply for licences for their premises and signboards.  

In light of the above, the Bar Council will file an action in court by 27 Apr 2017, to seek appropriate relief against the notices and summonses issued by DBKL.  

The Bar Council has also written to YB Dato’ Sri Azalina Othman Said, Minister in the Prime Minister’s Department in charge of legal affairs, requesting the Minister’s assistance in arriving at an amicable solution and a swift resolution in this matter.  A copy of this letter is also attached for your reference.     

Members who receive any notice or summons are encouraged to inform DBKL of the Bar Council’s position by referring to Circular No 003/2017 dated 5 Jan 2017, and to request DBKL to rescind the notice or summons immediately. 

For enquiries, or if Members encounter any difficulties in respect of this matter, please contact Marianna Laureen Tan, Executive Officer, by telephone at 03-2050 2086, or by email at ml.tan@malaysianbar.org.my.

Thank you.

Roger Chan Weng Keng
Secretary
Malaysian Bar