Starting a Practice

 

 

 

 

1. Name of Your Practice

 

If you intend to set up a sole proprietorship or partnership, you must first obtain the approval of Council in writing for your firm name pursuant to the Legal Profession (Naming of Law Firms) Rules. The relevant form to complete is available from the Law Society's secretariat or download LF1. If the Council objects to your proposed firm name, the Law Society's letter will explain the basis of the Council's objection.

 

From 1 May 2009, all sole proprietorships and partnerships will be required to register under the Business Registration Act with ACRA and ACRA will issue a business registration number which is the Unique Entity Number. The prior approval of the Council in writing for the firm name is required before registration with ACRA under the Business Registration Act. To register with ACRA, an application for registration must be submitted online via BizFile (www.bizfile.gov.sg).

 

Once your firm name is approved and your firm is registered with ACRA, you are to complete and submit to the Society LF2 and the Society will add your firm to the register of law firms.

 

If you cease your practice, you must notify the Society. This is done by completing the online Notice of Change of Particulars form and the Cessation of Practice form (LF4).

 

 

 

2. Commencing a Legal Practice

 

When you run a legal practice whether as a sole-practice or a partnership, you are not only running a business but you must also conduct your practice in accordance with the rules made under the Act and the Practice Directions of the Council.

 

 

 

3. Rules Made by the Council Under the Legal Profession Act

 

The following are rules relevant for the running of your practice made under the Act :

  • Accountants' Report Rules 1999 (Revised Edition)

  • Deposit Interest Rules 1999 (Revised Edition)

  • Group Law Practice Rules 1999

  • Legal Practice Management Course Rules 1997

  • Naming of Law Firms Rules 1997

  • Solicitors' Accounts Rules 1999 (Revised Edition)

  • Solicitors' Trust Account Rules 1999 (Revised Edition)

  • Professional Indemnity Rules 2000

  • Professional Conduct Rules 1998

  • Publicity Rules 1998

 

 

 

4. Unique Entity Numbers for Law Practices

 

From 1 January 2009, all entities registered in Singapore were issued a Unique Entity Number ('UEN') as a common identification number for interaction with government agencies. Law practices were also issued UENs to interact with government agencies. ACRA is the UEN Issuance Agency for law practices. Limited liability law partnerships were issued with new registration numbers as the UENs, while law corporations retained their existing ACRA registration numbers as the UENs.

 

All law firms (sole proprietorships and partnerships) will be registrable with ACRA under the Business Registration Act from 1 May 2009. The registration under the Business Registration Act will facilitate the issuing of UENs to law firms. During the interim period between 1 January 2009 and 30 April 2009, ACRA had assisted by issuing UENs to law firms administratively to enable law firms to transact with government agencies.

 

Existing law firms (as at 30 April 2009) were automatically registered under the Business Registration Act with effect from 1 May 2009, without any application for registration being made. The duration of registration under the Business Registration Act is for 12 months and all law firms which were automatically registered from 1 May 2009 will be required to renew their registration before 1 May 2010, and annually thereafter so long as they continue to carry on business.

 

ACRA has agreed to grant the following grace periods to all law firms that were automatically registered with effect from 1 May 2009:

  • A 12 month grace period for complying with the provisions relating to identical/ similar names under section 13 of the Business Registration Act; and

  • A 12 month grace period for complying with the requirement to print their UEN on letterheads, invoices, bills or other documents used for the purposes of business under regulation 11 of the Business Registration Regulations.

 

Currently, businesses registrable or registered under the Business Registration Act are required to satisfy ACRA of their compliance with the provisions concerning Medisave contributions under the CPF Act upon registration or renewal of registration. For existing law firms automatically registered under the Business Registration Act, ACRA did not impose any condition requiring compliance in respect of Medisave contributions at the time of automatic registration. However, such law firms will be required to satisfy these conditions concerning Medisave contributions at the time of renewal of registration, as is the case with all other registered businesses.

 

Click here to read Frequently Asked Questions about UEN.

 

For more information on UEN please visit the UEN website at www.uen.gov.sg.

 

 

 

5. Pre-requisites for Practising as Sole Proprietor, Partner or Director of a Singapore Law Practice

 

  • Under section 75C Legal Profession Act, before a solicitor may practise as sole proprietor, partner or director of a Singapore law practice, he must first complete the Society’s Legal Practice Management Course ('LPMC'), subject to paragraph 4.

     

    The requirement to complete the LPMC is set out in section 75C (1) (a) Legal Profession Act which provides as follows:

    ‘No solicitor may practise in a Singapore law practice as a solicitor on his own account or in partnership (whether in a law firm or a limited liability law partnership) or as a director of a law corporation unless he -
    (a) has successfully completed such legal practice management course within such time as the Council may by rules made under section 71 prescribe’

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  • In addition to completing the LPMC, a solicitor admitted after 1 March 1997 must also fulfil the following requirement:

     

    2.1   Since being admitted as a solicitor, he has been employed in a Singapore law practice for not less than 3 continuous years or 3 years out of a continuous period of 5 years; or
         
    2.2   He has been employed as a legal officer for not less than 3 continuous years or 3 years out of a continuous period of 5 years. 

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  • Pursuant to section 75C (5) Legal Profession Act, a breach of these requirements constitutes an offence, upon conviction of which the solicitor is liable to a fine not exceeding $10,000. 

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  • The requirements of section 75C Legal Profession Act do not apply to a solicitor who has been a sole proprietor or partner or director of a law practice before 9 March 2007.

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  • Following the Society’s queries,the Attorney-General’s Chambers had clarified that the terms 'director' and 'in partnership' as used in section 75 C(1) (a) Legal Profession Act encompass all solicitors held out by their law practice to the public as persons who have, or may have, managerial responsibilities. Thus, the term 'director' would include all persons with the designation of 'director', such as 'associate director', 'senior associate director', 'executive director', 'managing director', or simply 'director'. The term 'in partnership' would encompass any person held out to the public to be a partner of the law practice, including an equity, salaried or associate partner.

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  • Pursuant to Rule 6 Legal Profession (Legal Practice Management Course) Rules, the LPMC is required to be completed before a solicitor may practise as sole proprietor, partner or director UNLESS he has given a written undertaking to attend and successfully complete the LPMC within 1 year from the date of commencement of such practice as sole proprietor, partner or director.

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  • If you propose to complete the LPMC within 1 year from commencement of practice as sole proprietor, partner or director, you must first seek the written consent of the Council to do so and provide to the Society a written undertaking, on or before the date of commencement of such practice, to attend and successfully complete the LPMC within one year from the date of commencement of such practice.

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  • To register for the LPMC or if you require further information, click here.

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  • Council may, with the approval of the Minister for Law, exempt a solicitor from completing the LPMC or shorten the pre-requisite period of employment referred to in section 75C (1) (b) or (c) Legal Profession Act if the Council is satisfied that the solicitor has gained substantial experience in law in Singapore or elsewhere. If you wish to apply for an exemption or shortening of the period of employment, please submit your written application to the Director, Compliance Department.

 

 

 

 

6. Conditional Practising Certificate

 

Since 1 April 1996 the Attorney-General and the Council may apply to the Registrar of the Supreme Court during the yearly practising certificate renewal (see section 25A of the Act) or to the High Court during the currency of a practising certificate to attach condition(s) to the same (see section 27A of the Act).

 

Grounds under which the Attorney General or the Council may evoke the above powers are described in section 25A(1) of the Act.

 

Therefore, if a condition has been imposed on your practising certificate such that you cannot practise as a sole-proprietor or a partner, or that you may do so or continue to do so only if certain conditions are complied with, then you must satisfy the same.

 

 

 

7. Premises

 

Solicitors are entitled to share premises with each other, but steps must be taken to ensure confidentiality of clients' matters by making appropriate arrangements such as separate filing and computer systems, telephone and fax lines (rule 24 Professional Conduct Rules 1998 refers).

 

Under rule 9 of the above Rules, a solicitor cannot share, occupy or use premises jointly with a non advocate and solicitor without the Council's prior written approval. The Council will consider the following factors in deciding whether to approve an application under rule 9 of the Rules:

 

  • the business of the person, firm or company the solicitor is sharing premises with must not detract from the dignity of the profession;

  • the sharing arrangement must not prejudice a solicitor's duty of confidentiality to his client; and

  • the sharing arrangement must not attract business unfairly to the solicitor.

 

The Council will also take into account the relationship (if any) between the solicitor and the person, firm or company the solicitor is sharing premises with.

 

To apply for approval of Council pursuant to rule 9 of the Rules:

 

  • Write to the ‘Director, Compliance, Law Society’ and the letter should be titled 'Application For Approval Pursuant To Rule 9 Legal Profession (Professional Conduct) Rules'.

  • Attach to the letter, a layout plan of the premises. The area or room(s) which the law practice will occupy must be clearly marked.

  • The letter should include the following information:

  • The nature of business of the person, firm or company the law practice is sharing premises with.

  • Whether there is any relationship between the law practice and the person, firm or company the law practice is sharing premises with. Please indicate:

    • if the person, firm or company concerned is the client of the law practice;

    • if the area or room(s) which the law practice will occupy are cordoned off from the other areas or rooms in the premises;

    • if the law practice will share staff with the person, firm or company concerned;

    • if there will be a signage of the law practice, and the area of the premises where the signage will be placed;

    • if there will be a separate entrance to the law practice.


  • The steps taken to ensure that the confidentiality of the client matters of the law practice are maintained. Please indicate: 

    • if the law practice will have separate computer systems, telephone and facsimile lines;

    • the area of the premises and manner in which the client files and documents of the law practice will be kept;

    • the area(s) or rooms in which the solicitor(s) and staff of the law practice will be stationed;

    • if the person, staff or any member of the firm or company (the law practice is sharing premises with) has access to any of the rooms or areas occupied by the solicitor(s) or staff of the law practice.

 

 

 

8. Arrangement for the Continuance of a Sole-Practice

 

Under rule 7 of the Professional Conduct Rules 1998, you must as a sole proprietor of a practice, make arrangements for the continuance of your sole-practice. The nature of these arrangements are described in the May 1999 issue of the Law Gazette. The application form (LF2) to register the particulars of a law firm requires a sole-proprietor to complete a section providing the information required for the continuance of a sole-practice.

 

 

 

9. Books of Accounts, Accountant's Report and the Client's Account

 

The principal books of accounts a solicitor is required to maintain are described in the Solicitors' Accounts Rules. The books are described in rule 11 of the above Rules. From 15 July 2007, any withdrawal from a client account of a law practice exceeding $5,000 but not exceeding $30,000 must be withdrawn on the authorisation or signature of 2 solicitors of 3 years practice experience unless the law practice has engaged a qualified independent book keeper approved by the Council of the Society. Visit the Society's website and click on the icon "Legal Practice" and select "Appointing Second signatories and book keepers" to obtain more information and download the Society's application form to engage an approved book keeper.

 

For every withdrawal from a client account exceeding $30, 000 it must be authorised or signed by 2 solicitors of 3 years practice experience.

 

For "Conveyancing moneys" as defined in the Solicitors'Accounts Rules, a law practice cannot accept such moneys into its client account unless the law practice has submitted to the Council of the Society, prior to receipt of such moneys. A statutory declaration setting out the names of 2 qualified solicitors who will act as second signatories to the client account. The format of the statutory declaration to be submitted to the Council of the Society is set out under the icon "Appointing Second signatories and book keepers".

 

 

 

10. Principal Records

 

  • Cash book - office and client

  • General ledger

  • Client ledger

  • Bills ledger

  • Bills delivered book

  • Journal

  • Copies of bills

  • Bank reconciliation statements office and client

  • Bank statements/passbooks - office and client

  • Cheque books and stubs - office and client

 

Every solicitor who practices as a sole proprietor or partner must produce an accountant's report. The Council will not make any exceptions for salaried partners who, as in the case of equity partners, are jointly and severally liable to supervise the client's account of a practice and deliver the relevant report.

 

In the course of a practice year, if you do not hold or receive client's money as a sole-proprietor because of the nature of your practice, you may apply to the Council to be exempted from the obligation to deliver an accountant's report.

 

The Council will not grant the exemption unless it is satisfied through documentary evidence, such as bank statements that you had not held or received client's money. The Council will also require a statutory declaration from you describing the nature of your practice.

 

In response to the request made by the Law Society to the Association of Banks in Singapore (ABS), the Society has been advised that ABS issued a circular on 28 June 2005, advising its member banks to allow law practices to give standing instructions to their banks to deduct from their office accounts administrative charges on their clients' accounts when balances fall below the minimum sum required by the banks.

 

 

 

11. Miscellaneous

 

If you require letters from the Law Society to open bank accounts or obtain a telephone or fax number for your new firm, please write to the Compliance Department of the Law Society (compliance@lawsoc.org.sg).