Corporate And Commercial Lawyer Fees In Malaysia: A Guide For Business Owners

As corporate and commercial lawyers serving business clients, almost every new enquiry we receive includes some variation of:

“How much for [insert corporate legal service]?”

Our reply—that we can only provide a tailored quote once we know the scope of work—is often met with frustration, probably as other lawyers have told them the same!

If that describes your past experience with us, we apologise.

While we do need to understand your circumstances, there’s another reason: The Malaysian Bar Council prohibits lawyers from publicly stating our pricing.

So when it comes to legal fees, corporate lawyers often find themselves stuck between two key stakeholders with opposing needs, both with fair points.

This guide is our attempt to bridge that gap as we:

• educate readers on rules governing how lawyers in Malaysia display fees
• outline common pricing methods for corporate legal services
• share advice on which pricing models suit different business situations, and
• highlight ad hoc legal costs businesses should be prepared for

This is done in strict adherence and respect to Bar Council rules, so no specific figures or ranges will be published here!

Rules governing lawyer conduct in Malaysia

Two main regulations by the Bar Council regulate how lawyers in Malaysia communicate pricing: 

• Rule 5 of the Legal Profession (Publicity) Rules 2001, and
• the Solicitors’ Remuneration Order 2023 (SRO 2023)

We strongly recommend clicking into the links to understand them in full, but for the purposes of this guide, our summaries will do.

Rule 5 of the Legal Profession (Publicity) Rules 2001

When it comes to legal fees, Rule 5 of the Legal Profession (Publicity) Rules 2001 sets out clear boundaries. 

Lawyers in Malaysia are not allowed, for the purpose of obtaining clients, to:

• state or imply their rates or pricing methods
• make reference to their earnings, or
• offer incentives such as profit-sharing arrangements

The rationale is understandable: Lawyers should be engaged based on merit and quality of service, not marketing or financial inducements.

Solicitors’ Remuneration Order 2023 (SRO 2023)

We’re including this as some, perhaps only reading the title, have assumed it gives lawyers freedom to publish fees. We’ve had many leads cite the SRO as ‘proof’ we are wrong!

While the SRO establishes fixed scale fees and permits limited discounts for solicitors, it only applies to specific legal services, namely: 

• property transactions
• leases
• financing, and 
• document preparation

However, the SRO covers only a narrow segment of legal services and excludes most commercial and corporate work—including employment law, mergers and acquisitions, and contract drafting.

Implications for commercial lawyers in Malaysia

As most of our work falls outside the fixed scales prescribed by the SRO, we must tailor our fees to the scope and complexity of each client, with the final amount typically negotiated and set out in a written Letter of Engagement (LOE).

So now you know why we and other lawyers don’t display prices or provide general estimates!

That doesn’t mean there’s no rhyme or reason to how fees are set, and here are the most common pricing methods used by corporate lawyers.

Common pricing models

Corporate lawyers commonly use four main pricing models:

• hourly rates
• fixed fees
• capped fees, and
• staged payments & retainers

Each offers its own benefits and potential drawbacks (both for the client and for us), making them better suited for different arrangements.

Hourly rate

Here, your lawyer bills based on the actual time spent on your matter (usually tracked in 6-minute units). This structure works best for evolving or unpredictable matters such as M&A transactions, due diligence, or long negotiations.

Main benefits:

• you pay only for the actual work done
• flexible and adaptable when the scope changes

Potential drawback:

• costs can be difficult to predict without regular updates or caps

Fixed fee

Under this arrangement, you and your lawyer agree on a set price for a clearly defined task, or set of tasks, regardless of time spent. This works best for standardised deliverables like NDAs, partnership agreements, company incorporation, or PDPA policies.

Main benefits:

• full cost certainty from the outset
• simple billing process with no surprises

Potential drawback:

• any material scope change usually requires a revised quote or new engagement

Capped fee

This is a hybrid of hourly and fixed pricing, where your lawyer charges hourly but the total fee will not exceed a pre-agreed cap. If the work costs less, you pay the lower amount. It’s recommended for projects that are mostly defined but have some uncertainty, such as Shareholders’ Agreements.

Main benefit:

• you enjoy both flexibility and cost protection

Potential drawback:

• may still exceed expectations if initial assumptions are inaccurate

Staged payments & retainers

Here, fees are either paid at specific milestones (staged payments) or as a fixed monthly / annual sum (retainer). This is the go-to arrangement for long-term projects with lots of recurring work, namely businesses that simply want to have legal advisors on standby.

Main benefits:

• predictable costs and reliable legal coverage
• encourages deeper lawyer–client familiarity

Potential drawback:

• you inevitably pay for unused service capacity during quieter periods

How clients can get the best value

When reviewing fee proposals, the lowest quote may not give you the best value, and here’s how to secure quality legal service at the best possible price for your business.

Check scope clarity

Ensure your Letter of Engagement (LOE) or fee proposal clearly defines what’s included and excluded as ambiguity often leads to scope creep and unexpected costs later.

Ask for a cap

If your lawyer proposes hourly billing, request a capped fee where possible. This provides cost predictability while keeping flexibility for changing circumstances.

Consider staging

For large or multi-phase projects, ask about milestone-based payments or retainers. These spread costs over time and ensure work progresses in measurable steps.

Other factors that affect legal costs

Like any other professional service, legal fees are influenced by several underlying factors independent of the pricing model.

Don’t forget disbursements!

These are out-of-pocket expenses your lawyer pays to third parties on your behalf such as:

• SSM search/filing fees
• stamp duties
• Land search fees
• courier fees, and
• other ad hoc expenses

Compared to lawyer professional fees, disbursements usually make up a tiny portion of the total fees charged, but since we’re here to explain lawyer fees, we might as well include everything.

Asking lawyers for discounts

The SRO 2023 permits lawyers to offer a discount of up to 25% on fees listed in Table A of its First and Third Schedules.

For services not covered by the SRO, lawyers have discretion to negotiate fees, but they must be fair, reasonable, and in line with Malaysian Bar ethics.

Some practices common in other industries are strictly prohibited for lawyers, including:

• offering a lower rate for clients who sign quickly
• bundling services into package deals
• deliberately undercutting another lawyer’s price
• charging below-market rates
• paying or receiving referral fees
• entering into contingency (“no win, no fee”) arrangements

Though strict, these rules ensure lawyers are chosen first and foremost for expertise, not price.

And truth be told, a world where lawyers are only recommended for being ‘cheap’ is not a world most of us would want to practice in!

That said, as business owners ourselves, we know affordability matters, and many reputable lawyers are open to fair adjustments for long-term clients or complex, multi-stage matters.

Just ask nicely and see what happens!

Contact ELP for a tailored quote

If you’re a corporate decision-maker, SME owner, or startup founder, reach out for transparent and predictable legal pricing.

We’ll provide a detailed fee proposal outlining scope, fee model, payment schedule, delivery timeline and disbursements.

We encourage all prospective clients to ask questions about fees during the initial consultation. Our goal is to ensure you proceed with complete clarity and confidence.