Starting a Practice

 

 

 

 

1.    Applicable Registration Requirements of a Law Practice

 

The registration requirements depend on whether the law practice is a sole proprietorship, partnership, limited liability law partnership or limited liability law corporation.

 

1.1   Sole Proprietorship or Partnership Law Practice
     
    1.1.1 As of 1 May 2009, a sole proprietorship or partnership law practice must be registered with the Accounting and Corporate Regulatory Authority ('ACRA') under the Business Registration Act.
       
    1.1.2 Before you register your sole proprietorship or partnership law practice as a business with , you must first obtain the written approval of the Council under the Legal Profession (Naming of Law Firms) Rules to commence your intended law practice and its chosen name by completing form LF1.
       
    1.1.3 Businesses registered under the Business Registration Act must satisfy ACRA of their compliance with the provisions concerning Medisave contributions under the CPF Act upon registration or renewal of registration.
       
    1.1.4 The duration of registration is 12 months and every sole proprietorship or partnership law practice so registered must renew its registration annually for as long it continues to carry on practice.
       
    1.1.5 When a law practice is registered as a business, ACRA will assign a Unique Entity Number ('UEN') to it as a common identification number for interaction with government agencies. For more information on UENs, refer to Unique Entity Numbers for Law Practices.
       
1.2   Law Corporation or Limited Liability Law Partnership Law Practice
     
    1.2.1 A law corporation (‘LLC’) or limited liability law partnership (‘LLP’) law practice is required to be registered with ACRA.
       
    1.2.2 Before you incorporate a LLC or register an LLP with ACRA, you will need to obtain the prior written approval of the Council for the proposed commencement of your intended law practice and its chosen name by completing form LLC 1 (to incorporate a LLC) or LLP 1 (to register a LLP).
       
  1.2.3 More information on the incorporation of LLCs is available in the LLC Guidelines and the formation of LLPs under LLP Guidelines.

 

 

 

2.    Council’s Approval of Name of Proposed Law Practice

 

2.1   This applies to all practice structures. 
     
2.2   Upon the grant of the Council’s approval of the commencement of your intended law practice and its chosen name, you may begin the registration under the Business Registration Act or the Companies Act or Limited Liability Partnerships Act (as the case may be).
     
2.3   If the Council shall disapprove the proposed name of your intended law practice or in the case of a law corporation, its objects, the reasons for the Council’s objection will be provided to you.
     
2.4   The name of your intended law practice approved by both ACRA and the Council will be added to the register of law practices (under section 27 Legal Profession Act) provided that form LF2 is completed and submitted to the Law Society.

 

 

 

3.    Cessation of a Law Practice

 

3.1   Should you cease your law practice, you must notify the Law Society by completing the online form Notice of Change of Particulars and the Cessation of Practice form LF4.
     
3.2   For more information, refer to the section on Ceasing a Practice.

 

 

 

4.    Unique Entity Numbers for Law Practices

 

4.1   From 1 January 2009, every business and corporate entities registered in Singapore have a Unique Entity Number (‘UEN’) as a common identification number for interaction with government agencies. For more information on UENs visit the UEN website at www.uen.gov.sg.
     
4.2   ACRA has granted the following grace periods to law practices existing before 1 May 2009 which are automatically registered with ACRA as of 1 May 2009:
     
    4.2.1 A 12 month grace period for complying with the provisions relating to identical/similar names under section 13 of the Business Registration Act; and
     
    4.2.2 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.
     
4.3   Existing law practices automatically registered under the Business Registration Act, are required to satisfy conditions concerning Medisave contributions at the time of renewal of registration, as is the case with all other registered businesses.
     
4.4   UEN of Existing LLCs and LLPs
     
    4.4.1 UEN of an Existing LLC

An existing LLC retains the existing ACRA registration numbers as its UEN.
       
    4.4.2 UEN of an Existing LLP

An existing LLP has a new registration number as its UEN.

Under section 27(1) of the Limited Liability Partnerships Act, a LLP must ensure that its invoices and official correspondence bear its name and registration number.

An LLP registered before 1 January 2009 may continue to use the registration number issued by ACRA as the registration number of the LLP until and including 31 December 2009. The LLP will have to change the registration number appearing on its invoices and official correspondence to its UEN not later than 1 January 2010.
     
4.5   To find out more about UEN, click here.

 

 

 

5.    Qualification to Practise as Sole-Proprietor, Partner or Director


 
5.1   No solicitor may practise as a sole proprietor, partner, or director of a law practice unless the requirements set out in section 75C Legal Profession Act are complied with.
     
5.2   The Requirements under Section 75C Legal Profession Act
     
    5.2.1 Under section 75C Legal Profession Act, before you may practise as a sole proprietor, partner, or director of a law practice, you must fulfill the following requirements:
     
    (a) You must have completed the Law Society’s mandatory Legal Practice Management Course (‘LPMC’) (ref: section 75C(1)(a) Legal Profession Act);
       
    (b) You must have been in practice for at least 3 years (either 3 continuous years or 3 out of 5 continuous years) as a solicitor in private practice or employed as a legal officer in the Singapore Legal Service (ref: section 75C(1)(b) and (c) Legal Profession Act).
     
5.3   Application and Permitted Exclusions of Section 75C Legal Profession Act
     
    5.3.1 Application of Section 75C(1)(a) Legal Profession Act

The requirements for completion of the LPMC under section 75C(1)(a) Legal Profession Act applies to all solicitors who wish to practise as sole proprietor, partner or director of a law practice, regardless of when you are admitted as an advocate and solicitor, subject to paragraph 5.3.3.
     
    5.3.2 Application of Section 75C(1)(b) and (c) Legal Profession Act

The requirements under section 75C(1)(b) or (c) Legal Profession Act is applicable only if you are admitted as an advocate and solicitor after 1 March 1997.
     
    5.3.3 Non-Application of Section 75C Legal Profession Act

Section 75C Legal Profession Act does not apply to an advocate and solicitor who has been in practice as a sole proprietor or partner or director of a law practice before 9 March 2007.
     
5.4   Procedure for Compliance with Section 75C(1)(a) Legal Profession Act
     
    5.4.1 Completion of LPMC before Commencement of Practice As Sole Proprietor Partner Director of a Law Practice
     
    (a) If you meet the requirements under section 75C(1)(b) or (c) Legal Profession Act, you may commence practice as a sole proprietor, partner or director of a law practice after you have first completed the LPMC in compliance with section 75C(1)(a) Legal Profession Act.
       
    (b) To register for the LPMC, you must submit the Notice of Registration as soon as practicable.
       
    (c) The LPMC is conducted once a year, usually in the months of February or March. Upon receipt of your duly completed Notice of Registration, our Continuing Professional Development department will contact you with details of the date when the LPMC course will be conducted for purposes of your registration.
       
    5.4.2 Completion of LPMC after Commencement of Practice As Sole Proprietor Partner Director of a Law Practice
You may commence practice as a sole proprietor, partner or director of a law practice before completing the LPMC provided that you have sought and obtained the prior written consent of Council of the Law Society to do so by submitting prior to commencing practice as sole proprietor, partner or director, to the Council of the Law Society:
     
    (a) a Notice of Registration; and
       
    (b) a Written undertaking to attend and complete the LPMC within one (1) year of starting practice as sole proprietor, partner, or director of a law practice
       
5.5   Application for Exemption from Section 75C Legal Profession Act
     
    5.5.1 You may apply for exemption from section 75C (1)(a), (b) or (c) Legal Profession Act if you can show that you have gained substantial experience in law in Singapore or elsewhere (ref: section 75C(2) Legal Profession Act).
     
    5.5.2 The application for exemption is by way of a written application to the Council of the Law Society.
     
    5.5.2 The Council of the Law Society, upon receipt of your written application, will seek the Minister of Law’s approval for exemption if it is satisfied that that you have gained substantial experience in law in Singapore or elsewhere (ref: section 75C(2) Legal Profession Act).

 

 

 

6.    Practising Certificate

 

6.1   To practise law in Singapore, you must have first applied for and obtained a practising certificate (‘PC’) issued by the Registrar of the Supreme Court (the ‘Registrar’).
     
6.2   A PC is required to be applied for every practice year commencing 1 April of a calendar year and ending 31 March the following calendar year. A PC for any practice year may therefore commence on any date after 1 April of a calendar year but will automatically expire every 31 March of the following calendar year.
     
6.3   Practising without a PC may subject you not only to disciplinary proceedings but is a criminal offence under section 33 Legal Profession Act.
     
6.4   Under section 25A Legal Profession Act, the Attorney-General or the Council may request the Registrar to refuse your application for a PC or to attach conditions to your PC when you apply for the issuance of PC if:
     
    6.4.1   your suspension from practice has expired;
         
    6.4.2   you have been discharged from bankruptcy you have been sentenced to a term of imprisonment in Singapore or elsewhere in any civil or criminal proceedings
         
    6.4.3   you have been convicted of an offence involving dishonesty or fraud;
         
    6.4.4   you have been convicted of an offence in relation to your conduct in your practice of law;
         
    6.4.5   you have been found guilty of misconduct in any other professional capacity;
         
    6.4.6   your fitness to practice has been determined under section 25C Legal Profession Act to be impaired by reason of physical or mental condition or you have failed to submit to a medical examination under after having been ordered by a Judge to do so within such time as ordered under section 25C Legal Profession Act;
         
    6.4.7   the Attorney-General or the Council is satisfied that you are incapacitated by illness or accident or by a physical condition to such extent as to be unable to attend to your practice; or
         
    6.4.8   the Attorney-General or the Council is satisfied that you have breached the rules made under section 72 Legal Profession Act (which include the Legal Profession (Solicitors’ Accounts) Rules).
     
6.5    At any time after a PC is issued, the Attorney-General or the Council may also apply to the High Court to (section 27A Legal Profession Act) to attach condition(s) to the practising certificate if any of the circumstances set out in paragraphs 6.4.1 - 6.4.8 shall apply (ref: section 27A Legal Profession Act).
     
6.6   If a request has been made under section 25A Legal Profession Act by reason of the circumstances mentioned in paragraphs 6.4.3 - 6.4.8 (such as a prohibition from practising as a sole proprietor, partner, or director of any law practice), you may, upon proof of a change of circumstances or for any good cause, inform the Attorney-General or the Council of the change or good cause. The Attorney-General or the Council may reconsider the request and request the Registrar accordingly. The Registrar may comply with the request and notify the solicitor in writing.
     
6.7   Similarly, if an order has been made under section 27A Legal Profession Act by reason of the circumstances mentioned in paragraphs 6.4.3 - 6.4.8, you may, upon proof of a change of circumstances or for any good cause, apply to a Judge for a reconsideration of the matter. Act are complied with.

 

 

 

7.    Professional Indemnity Insurance

 

7.1   Before you may commence practice, you must pursuant to section 75A Legal Profession Act, obtain insurance cover under the Law Society Mandatory Professional Indemnity Scheme (the ’PI Scheme’) to indemnify you against loss in respect of civil liability arising from claims in connection with your practice and in the case of a LLC and LLP, in connection with legal services performed by it.
     
7.2   Solicitors employed by any statutory board or authority or who apply for PCs under section 26(2) Legal Profession Act are exempted from this requirement.
     
7.3    The terms of the PI Scheme are negotiated by the Law Society. The brokers for the PI Scheme (the ’PI Scheme broker’) sends a copy of the PI Scheme policy to every law practice.
     
7.4   The salient terms of cover of the PI Scheme are as follows:
     
    7.4.1   Every solicitor, pupil and employee of a sole practice/partnership is covered up to a liability limit of S$1 million for each and every civil claim (inclusive of costs and expenses);
     
    7.4.2   Every LLC and its solicitors, pupils and employees is covered up to a liability limit of S$2 million for each and every civil claim (inclusive of costs and expenses);
     
    7.4.3   Every LLP and its solicitors, pupils and employees is covered up to a liability limit of S$2 million for each and every civil claim (inclusive of costs and expenses); and
     
    7.4.4   Dishonesty of employees (employed lawyers and non-lawyer employees) up to the full limit of cover under the Scheme policy.
     
7.5   All foreign lawyers employed by a law practice and a solicitor who holds a PC and practises in a Joint Law Venture are similarly covered under the PI Scheme.
     
7.6   The PI Scheme will not indemnify a solicitor in respect of any loss arising out of the following:
     
    7.6.1   Any claim or circumstances likely to give rise to claims of which the lawyer knew or was aware of prior to the commencement of the policy period;
     
    7.6.2   Any dishonest, fraudulent, criminal act or omission of any proprietor, partner or director;
     
    7.6.3   Bodily injury, disease or death of any person, or physical loss or physical damage to property;
     
    7.6.4   Trade debts;
     
    7.6.5   Fines, penalties or liquidated damages; or
     
    7.6.6   Acts, omissions committed in the capacity of director, officer or company secretary of a company other than in the course of the provision of legal services.
     
7.7   You apply for and pay the required premium to obtain an Evidence of Insurance from the PI Scheme broker before the commencement of your practice and when you apply for your PC at the start of a practice year.
     
7.8   If you wish to top-up your insurance coverage beyond the $1 million or $2 million mandatory PI Scheme limit, you may approach any broker for a quotation for the additional coverage.
     
7.9   Whether additional cover or top-up cover is necessary for your law practice depends on the nature of your legal practice and your potential exposure to civil liability beyond the current mandatory coverage.
     
7.10   In considering the breadth of your coverage, you might wish to consider the legal work carried out in the past, present work, as well as expected future work of your law practice.
     
7.11   If, during the currency of the PI Scheme, you become aware of any potential claim that may be made against you, your employee, staff, pupil, or your law practice, you must notify the PI Scheme broker of the same during the policy period otherwise the insurers will be entitled to disclaim liability.

 

 

 

8.    Premises

 

8.1   Requirement to have a Practice Address
     
    8.1.1   When you apply for a PC, you are required to provide to the Law Society and the Registrar the 'principal address and every other address' in which the law practice will be carrying on its practice.
         
    8.1.2   This address could be your residential address if your practice operates from a residential address. Refer to Paragraph 8.3 – Working from Home.
         
8.2   Sharing Premises
         
    8.2.1   Solicitors may share work premises with each other. However, pursuant to your professional duty of confidentiality to your clients under Rule 24 Legal Profession (Professional Conduct) Rules ('Professional Conduct Rules'), steps must be taken to protect confidentiality of clients’ affairs by making appropriate arrangements such as separate storage areas for client files, maintaining separate computer systems, telephone and facsimile lines.
         
    8.2.2   Rule 9 Professional Conduct Rules prohibit a solicitor from sharing premises with a non-advocate and solicitor except with the Council’s prior written approval. Such sharing arrangement will include the use of serviced offices as you share common facilities and premises with non- advocates and solicitors.
         
    8.2.3   In determining whether to grant approval for the sharing premises with non-advocates and solicitors, the Council will give consideration to the following:
         
        (a)   The nature of the business carried on by the firm or company sharing premises with the law practice which must not detract from the dignity of the legal profession;
             
        (b)   The sharing arrangement must not prejudice a solicitor's duty of confidentiality to his client; and
             
        (c)   The sharing arrangement must not attract business unfairly to the solicitor.
         
8.3   Working from Home
         
    8.3.1   The option to practise law from home is a practical option in this electronic age where filing of documents and applications may be via the internet. The need to be physically near the central business district is no longer a primary concern for practising solicitors.
         
    8.3.2   Before you set up a 'home office’ consider the following:
         
        (a)   Check whether your private residential premises, HDB residential flats or executive condominiums can be used for commercial purposes. (There may be restrictions or compliance requirements set by the Urban Redevelopment Authority or the Housing & Development Board);
             
        (b)   What benefits, other than saving on rental revenue, are to be gained by practising from home as opposed to an office space outside of the home; and
             
        (c)   Is your intended home office conducive and conveniently located for your clients to meet with you or will it be necessary for you to rent a ‘service office’ (which is generally an office space located in the central business district) for the purpose of meeting up with clients.

 

 

 

9.    Clients from Your Previous Practice

 

The clients of the law practice that you preciously practised in are clients of that law practice and are not your individual clients. The decision to terminate a retainer to transfer a matter to your law practice is a decision made by the client alone.

 

 

 

10.    Client Account of a Law Practice

 

10.1   Sole Proprietorship or Partnership Law Practice
     
    10.1   You will need to open and operate a client account if you intend to practice areas of law where you are required to hold ’client money’ as defined in the Legal Profession (Solicitors’ Accounts) Rules (the ’Solicitors’ Accounts Rules’) or in a manner required by the Legal Profession (Deposit Interest) Rules.
         
    10.2    If you will be receiving and holding client money, you must open a bank or finance company account in a Singapore bank or finance company. A client account is opened in the same way as for any business account in the name of the law practice but the Solicitors’ Accounts Rules require the words “client” to be included in the name of the account (ref: Rule 2 Solicitors’ Accounts Rules).
         
    10.3   In response to a request made by the Law Society to the Association of Banks in Singapore ('ABS'), the ABS had on 28 June 2005, issued a circular advising its member banks to allow law practices to give standing instructions to their banks to deduct from their office accounts, administrative charges due from their clients' accounts, when balances of those clients' accounts fall below the minimum sum required by the banks.
         
    10.4    If you have decided that you will not be receiving any client money because of your area of practice (for instance, if you will be only acting as counsel or undertaking advisory legal work), you need not open a client account before you start your practice.
         
    10.5   If you will not be holding client money, inform the Law Society in writing so that the Law Society can advise you as to the procedure for obtaining an exemption to produce an accountant’s report during the annual renewal of your PC.

 

More information is found in Paragraph 13 - Accountant’s Report.

 

 

 

11.    Operating a Client Account

 

For information on conveyancing money, please click here.

 

11.1   The objective of the Solicitors’ Accounts Rules is to set out procedures and processes to protect clients' moneys and maintain an adequate book-keeping and recording system for such moneys held and received by solicitors.
     
11.2   The Solicitors’ Accounts Rules do not permit the use of an automated teller machine, internet or telephone banking services or cash or bearer cheques for the withdrawal of client money (save except with the leave of a Judge of the High Court). (Ref: Rules 8(4) and (4A) Solicitors’ Accounts Rules).
     
11.3   A law practice may engage an independent book-keeper (who cannot be an employee of the law practice or ’an immediate family member of the solicitor’ (as defined in Rule 11A(11) Solicitors’ Accounts Rules) to keep the books and accounts of the law practice properly written up and reconciled as required by Rule 11(8) Solicitors' Accounts Rules.
     
11.4   Written approval of the Council must be obtained for the engagement of a book-keeper for purposes of Rule11(8) Solicitors' Accounts Rules.
     
11.5   A book-keeper for purposes of Rule11(8) Solicitors’ Accounts Rules is required to meet the minimum professional qualifications or experience set out in the Council's Practice Direction 1 of 2011.
     
11.6   The procedure for obtaining the written approval of Council is set out in Rule 11A Solicitors' Accounts Rules. The law practice must submit a prescribed application form together with a statutory declaration by the book-keeper which must be submitted each year. The relevant forms and format of the statutory declaration are available here.
     
11.7   If a solicitor does not engage an approved independent bookkeeper to write up the required books of accounts, then no withdrawal of any sum exceeding S$5,000 can be made from the client account except upon a cheque or other instruction effecting the withdrawal signed by 2 solicitors qualified to act as signatories (Ref: Rule 8(5) Solicitors Accounts Rules).
     
11.8   If you engage an approved independent bookkeeper then no sum exceeding S$ 30,000 can be drawn from the client account except upon a cheque or other instruction effecting the withdrawal signed by 2 solicitors qualified to act as signatories (Ref: Rule 8(6) Solicitors’ Accounts Rules).
     
11.9   Rule 8(7) Solicitors’ Accounts Rules sets out the qualification of a signatory to a client account. Briefly, the signatory must:
     
    11.9.1   have been in practice in Singapore as a solicitor or employed as a legal service officer for 3 years in aggregate; and
         
    11.9.2   there is no condition imposed on the proposed signatory’s PC prohibiting him from signing or giving instructions for the withdrawal of client money.
         
    Council's Practice Direction 1 of 2011 sets out the requirements and procedure for the engagement of a book-keeper and Council’s Practice Direction 3 of 2011 sets out the duties of a second signatory and permits the second signatory to charge a fee for his services.

 

 

 

12.    Accounts

 

12.1   Financial Planning

It is important to budget your income and expenses each year, and it is advisable that you prepare a budget prior to setting up a practice. Your budget should include all office expenses to determine the income you need to generate to cover all your expenses. In your revenue projection, take into account your potential client base, the amount you can charge for your services and the amount recoverable.

A simple method of determining your projected income is to multiply the number of billable hours each day by the number of days you plan to work each year by your charge-out rate. The industry standard for the number of hours worked per annum is between 1,200–1,400. It is prudent to determine your charge-out rate before you set up your practice.

For non-contentious work, the Solicitors’ Remuneration Order sets out certain principles to be applied to determine how much you can charge. It does not set out a rate, but rather, shows how you should calculate the amount to charge, depending on factors such as the time spent on the matter, your seniority in practice and the complexity of the matter.

In calculating your expenses, you should take into account recurring expenses such as rent, salaries, utilities, filing fees, maintenance of equipment and storage of files as well as capital expenditure such as furniture, computers and equipment. There will also be other start-up costs such as rental deposit and cost for renovations and furnishing. In addition, there will be other expenses such as practising certificate and professional indemnity fees, auditing fees, accounting fees, postage and stationery, bank charges and allowance for bad debts.

Having budgeted your expenses and estimated your income, it is worthwhile completing a six-month cash flow statement. When calculating the fee income, it would be prudent to lower your expectations of fees collectable from the previous month’s billings. Generally, you are likely to receive 60 percent of the total fees billed for the previous month, with 20 percent being received in the second month and the balance thereafter. A small percentage should be deducted for bad debts. You should take into account which items of expenditure will be paid weekly, fortnightly, monthly or quarterly. Some expenses may be paid yearly or could even be one-off purchases. Some items may be leased or purchased through a hire-purchase agreement.

Depending on the amount of risk you are prepared to carry, you may decide to start your own practice with projected income being less than your expenses. A more conservative position would be to proceed only when projected income is equal to or exceeds expenses. Your financial planning should be done as accurately as possible to avoid falling short and running up a deficit. This could lead to trouble if you are unable to discharge the debt and thus risk litigation and/or bankruptcy proceedings.
     
12.2   The following principal records (which can be maintained electronically) are essential for all law practices to maintain to record dealing with clients money:
     
    12.2.1   Cash books - office and client;
         
    12.2.2   General ledger;
         
    12.2.3   Client ledger;
         
    12.2.4   Bills ledger;
         
    12.2.5   Bills delivered book;
         
    12.2.6   Copies of bills;
         
    12.2.7   Monthly Bank reconciliation statements - office and client;
         
    12.2.8   Bank statements- office and client;
         
    12.2.9   Cheque books - office and client.
         
12.3   The books of accounts must be preserved for 6 years by a solicitor from the date of the last entry (Rule 11(6) of the Solicitors’ Accounts Rules).
     
12.4   In addition, the following accounting records are also usually maintained:
     
    12.4.1   Petty cash book;
         
    12.4.2   Trial balance;
         
    12.4.3   Bank deposit slips - office and client;
         
    12.4.4   Receipts books;
         
    12.4.5   Payment vouchers;
         
    12.4.6   Petty cash vouchers;
         
    12.4.7   Debtors’ analysis.

 

 

 

13.    Accountant’s Report

 

13.1   Every advocate and solicitor who holds client money is required to produce an accountant's report. This applies whether or not the advocate and solicitor practises as an employee or as a sole proprietor, partner or director of a law practice.
     
13.2   The Council does not make any exceptions for salaried partners to produce an accountant’s report as all partners of a law practice are jointly and severally liable to supervise their clients' accounts and deliver the relevant accounting report for their period of partnership.
     
13.3   If in the course of a practice year, you do not hold or receive any clients' money as a sole proprietor, partner or director of a law practice, you may apply in writing to the Council of the Law Society to be exempted from the obligation to deliver an accountant's report. Such application in writing for exemption ought to be submitted with such relevant documentary proof as hereinafter described.
     
13.4   The Council of the Law Society will not grant the exemption unless:
     
    13.4.1   it is satisfied through documentary evidence e.g. Bank statements, that you had not held or received client's money; and
         
    13.4.2   a statutory declaration sworn/declared by you describing the nature of your practice for the period for which you are requesting for exemption of production of the accountant's report.

 

 

 

14.    Publicity, Stationery & Equipment

 

14.1   Publicity
     
    14.1.1   Pursuant to the Legal Profession (Publicity Rules) 1998 (the ’Publicity Rules’), any publicity of your as an advocate and solicitor or your law practice must not be false, misleading, deceptive, inaccurate or unbefitting the dignity of the legal profession. Special attention should be paid to the factors that must be taken into account before you make a claim to any expertise or specialization in any field of law (Ref: Rule 6(2) Publicity Rules).
         
    14.1.2   Pursuant to the Professional Conduct Rules, title descriptions of lawyers require the Council’s approval. Any descriptions not expressly permitted by the Council may only be used with the Council’s prior written approval. Permitted descriptions for directors and solicitors employed by law corporations may be found in the Guidelines for Law Corporations.
         
14.2   Corporate Stationery

The relevant rules and regulations governing corporate stationery are found in the Professional Conduct Rules and the Publicity Rules.
     
14.3   Calling Cards
     
    14.3.1   If you provide business cards, otherwise known as calling cards, to non-solicitor staff, it is prudent to do so only for staff of a certain level of seniority within the law practice.
         
    14.3.2   Their name, designation (which ought not to be described in a manner to give the impression that he is an advocate, solicitor or bearing legal expertise of any manner) and the law practice’s address should be sufficiently set out in the business card. Staff must be advised on the proper use of any business card issued to them by the law practice.
         
14.4   Computer Software
     
    14.4.1   In addition to the word processing function in computers, a whole range of software programs is now widely available to a practitioner help manage the office, the client database, the law practice’s accounts and even costing. For proper client and risk management, such tools are essential and should be taken into consideration when setting up and running a law practice.
         
    14.4.2   Other than cost considerations, the type of software application that you may choose will largely depend on the type of practice you intend to run.
         
    14.4.3   Software programs are often easily customizable to meet the needs of your particular law practice.
         
    14.4.4   When choosing the appropriate software, keep in mind the type of support services offered by the vendor, which may or may not include the additional costs of staff training required to use the software. In addition, find out whether additional costs are necessary to upgrade the software.
         
    14.4.5   You may wish to consider appointing a consultant to advise you on the suitable software that best meet the needs of your law practice. The appropriate software applications not only save you time in running your practice, it will also be an invaluable asset to managing your business.
         
    14.4.6   It is important to consider how you wish to communicate with your clients In this day and age, e-mail communication is no longer an option but a necessary requirement for any law practice.
         
    14.4.7   E-mail communications must be treated no differently from paper or oral communication with your clients. Council’s Guidance Note 1 of 2001 sets out guidelines to be followed in setting up e-mail policies for a law practice. It is prudent to ensure that your staff and clients are made aware of your law practice’s e-mail policies.

 

 

 

15.    Electronic Filing System

 

15.1   All proceedings commenced in the Supreme and Subordinate Courts must be filed electronically. Consequently, if you run a litigation practice, the Electronic Filing System ('EFS') FE-Web, a web-based front-end system is a necessary system that has to be installed by your law practice.
     
15.2   The additional advantage of the EFS FE-Web is the Electronic Extraction Service (which allows the user to extract copies of documents filed electronically), the Electronic Service of Documents Facilities (which allows the law practice to serve copies of court documents on other law practices electronically), and the ability to access and to view submissions and replies on-line.
     
15.3   While no special internet connections are required to access the EFS Web Portal and connection may be made via telephone line, a broadband connection is generally advisable given the size of court documents often dealt with in litigation matters.

 

 

 

16.    Staff

 

16.1   Pursuant to Rule 8 Professional Conduct Rules, every lawyer must exercise proper supervision over his employees and other staff.
     
16.2   Staff must be properly briefed on the duty to keep clients’ affairs confidential, the standard of care under the rules of adequate professional services found in the Professional Conduct Rules, practice rules on anti-money laundering and prevention of terrorist financing (Refer to the section on Anti-Money Laundering Measures), e-mail and internet use, financial and client money controls of the practice and Council’s Guidance Note 1 of 2006 on the procedure for storage and destruction of client files.
     
16.3   Under section 78(1) Legal Profession Act, you cannot employ or remunerate any person without the consent of High Court, who to your knowledge, is an undischarged bankrupt, or has been:
     
    16.3.1   struck off as a legal practitioner in any jurisdiction;
         
    16.3.2   suspended as a legal practitioner in any jurisdiction;
         
    16.3.3   convicted of an offence involving dishonesty;
         
    16.3.4   convicted of an offence under section 33 Miscellaneous Offences (Public Order and Nuisance) Act or under any other provision of that legislation;
         
    16.3.5    listed as a tout; or
         
    16.3.6   subject to an order of Court made under section 78(4).
         
16.4   Section 78(7) Legal Profession Act requires that before a solicitor remunerates or employs any person (other than an advocate and solicitor or a qualified person) he must first obtain a statutory declaration from that member of staff declaring that he:
     
    16.4.1   is not an undischarged bankrupt;
         
    16.4.2   has not been struck off as a legal practitioner in any jurisdiction;
         
    16.4.3   has not been suspended as a legal practitioner in any jurisdiction;
         
    16.4.4   has not been convicted of an offence involving dishonesty;
         
    16.4.5   has not been convicted of an offence under section 33 of the Miscellaneous Offences (Public Order and Nuisance) Act or under any other provision of that legislation;
         
    16.4.6   has not been listed as a tout;
         
    16.4.7   has not been employed as a public officer; and
         
    16.4.8   has not been subject to an order of Court made under section 78(4).
         
16.5   A certified copy of the statutory declaration must be delivered to the Law Society within 14 days of the person's commencement of employment. A failure to comply with Section 78(7) Legal Profession Act may subject a solicitor to disciplinary proceedings under the Legal Profession Act (ref: Section 78 (8) Legal Profession Act).

 

 

 

17.    Managing Files

 

17.1   Keeping a Register

In order to keep track of your active and closed files, it is important that you keep and maintain an updated register for both such files. The register should indicate the file number, client’s name, address and contact numbers, the subject matter and the location of the file (especially if the file is closed and kept in storage). This will make for proper management of your files and easy retrieval when necessary. This register will allow you to conduct your checks on conflict of interests as your practice grows. It also helps you to monitor progress and status of matters.

In the past, the file register was maintained in the form of register books for both active as well as closed files. Client details had to be checked manually through tedious inspection of register books. Today, there are numerous software packages that enable a law firm to enter all relevant data relating to a new client and his matter, track progress of the matter, show payments made to date, and keep track of the files once closed and sent for archiving. An essential aspect of any law practice is the ability to track clients and files. This becomes especially relevant in preventing a conflict of interest arising when taking on a new matter.
     
17.2   Managing Clients’ Documents

In the course of your work, you will often be in possession of original documents belonging to your clients. It is vital that original documents be kept safely. Copies should be made of all originals and used as working copies.

Documents generated for filing in Court are usually filed together in a cause paper file while correspondence and other documents are filed in a separate file. Aside from correspondence, memoranda and internal notes, which may be retained by a solicitor, the other documents including the cause papers, belong to the client. These documents should be returned to the client at the conclusion of the matter or if the matter is to be transferred to another firm of solicitors.

It is a good practice to have clients or third parties sign acknowledgement of receipt of documents and file such acknowledgement of receipt in the client files. This will prevent any misunderstandings should a dispute develop as to who has possession of which documents.
     
17.3   Duration for Keeping Files

The duration for which a law practice is required to keep a closed file, and details relating to the storage and destruction of documents are set out in Council’s Practice Direction 1 of 1999 and Council’s Guidance Note 1 of 2006.

 

 

 

18.    Arrangements for Continuance of a Sole Practice

 

18.1   Pursuant to Rule 7 Professional Conduct Rules, a sole proprietor must make arrangements for the running of his practice during his absence. A solicitor who agrees to oversee the sole practice when the sole proprietor is absent is referred to as a ’covering solicitor’ (or ’alternate solicitor’). An example of a situation where a covering solicitor is required is when the sole proprietor is temporarily absent due to illness.
     
18.2   The application form LF2 to register the particulars of a law practice requires a sole proprietor to provide information of the covering solicitor. The sole proprietor is required to submit to the Society together with the duly completed LF2, a letter from the covering solicitor confirming his agreement to act as the covering solicitor.
     
18.3   The nature of the arrangements with a covering solicitor is described in the May 1999 issue of the Singapore Law Gazette. Reference is made in the article to a managing solicitor (or a legal manager). A managing solicitor is not the same as a covering solicitor.
     
18.4   A managing solicitor may be appointed in the following situations:
     
    18.4.1   in the event of the death of a sole proprietor; or
         
    18.4.2   in the event a sole proprietor is struck off the roll or imprisoned and client files and client moneys have not been returned to clients or distributed (with clients' consent) to other solicitors.

 

 

 

 

19.    Maintaining Professionalism

 

19.1   Lawyers should be cognizant of the Legal Profession (Professional Conduct) Rules as failure to abide by the Legal Profession (Professional Conduct) Rules may expose you to disciplinary proceedings.
     
19.2   Further, professional negligence claims can arise from the following:
     
    19.2.1   Failure in Communication

Clear and effective communication is essential for your practice. When receiving instructions from a third party on behalf of a client, always verify that such third party is properly authorised to give instructions. When acting for more than one party in a transaction or matter, it is important to communicate with all of them and obtain their separate instructions, unless they have agreed to delegate that task to one party.

You should draw up a letter of engagement which the client signs when he instructs you to act in his matter. You should also ensure that your client knows what is required of him, what you will do to meet his requirements and the time frame involved. Click here to view a sample letter of engagement.

Communicate with your client on a regular basis and update him on the progress of his matter. Keep attendance notes of your meetings and communication with all parties connected with the matter.
         
    19.2.2   Missed Timelines and Delay

All timelines must be met otherwise you and your client may face serious consequences. Record all timelines clearly on each file and in a master diary, for daily review.

Act on your clients’ instructions promptly to avoid complaints of delay. If you need instructions from him, write to him in advance of the deadline and send periodic reminders.

An effective file review system (individual and master review) will help you keep track of files.
         
    19.2.3   Poor Delegation and Supervision of Files

If you have to delegate a file, ensure that you delegate it to someone capable of handling the matter who has the time and capacity to manage it. Conduct periodic checks on the status of the matter.
         
    19.2.4   Slipshod Undertakings

Be wary of giving personal undertakings. You have no obligation as a lawyer to give personal undertakings.
         
    19.2.5   Poor Office Administration

Ensure that:

  • files are kept in a neat and orderly manner;

  • original documents such as title deeds or wills are stored in a secure place;

  • incoming mail is properly supervised and sorted;

  • outgoing correspondence is checked;

  • a proper file review system is in place;

  • individual and master diaries are kept and checked;

  • file movements are tracked;

  • a proper message retrieval system (e.g. from phone or computer systems) is in place;

  • duties and authority of staff are clearly defined; and

  • staff are properly trained and supervised.

         
    19.2.6   Lack of Legal Knowledge and Expertise

Do not accept matters that are not within your knowledge and competence. Even with regard to your routine practice area, regularly update yourself with developments in the law. The Society’s Continuing Professional Development department regularly conducts training programs.
     
19.3   Overcharging
     
    19.3.1  

A lawyer must not render a bill (whether the bill is subject to taxation or otherwise) which amounts to gross overcharging [Rule 38 of the Legal Profession (Professional Conduct) Rules refers]. A client can make a complaint to the Law Society in a situation of overcharging. Lawyers are required to inform the client of the method employed in charging the client and you should give an estimate of your costs before you undertake the work.
         
    19.3.2  

If you feel that the bill you have rendered to your client is fair, you may wish to consider mediation on the matter under the Law Society’s Cost Dispute Resolve services of the Law Society to mediate what a fair amount ought to be for your professional services under the circumstances.

 

 

 

 

20.    Marketing Your Law Practice

 

20.1   Publicity
     
    20.1.1  

The Law Society (Publicity) Rules set out what can be contained in any marketing material connected with your law practice (Ref: Rules 6 and 7). Your law practice or your services may be publicized together with the publicity of a third party (Ref: Rule 9). However, you should review any publicity material designed by a third party to ensure compliance with the Law Society (Publicity) Rules and Legal Profession (Professional Conduct) Rules.
         
    20.1.2  

The above restrictions do not apply if the publicity is intended for use outside Singapore (Ref: Rule 11). However, you should ensure that the publicity is not in a manner contrary to the laws of that country. Publicity conducted in the mass medium or electronic medium, including the Internet, must comply with the requirements of Part III of the Law Society (Publicity) Rules which applies to publicity within Singapore (Ref: Rule 12(3)).
         
20.2   Referral Work and Publicity
         
    20.2.1  

If work is referred to you by a third party, there are certain requirements that you must observe in connection with your relationship with the referrer (Ref: Rule 11A of the Legal Profession (Professional Conduct) Rules). This is to ensure that your relationship with your client is not compromised by your relationship with the referror. The work you perform must always be in the best interest of your client and not the referror.
         
    20.2.2  

Where the referral work involves a conveyancing matter, the conveyancing referral must be in writing and must contain certain specific terms which include a requirement for the referror to comply with the Legal Profession (Publicity) Rules and a limitation on what the referror may say in any publicity involving the work to be provided by your law practice (Ref: Rule 11B of the Legal Profession (Professional Conduct) Rules).

 

 

 

 

21.    Help and Advice

 

21.1   The Law Society has several schemes to assist solicitors on practice matters or personal issues. You can receive free legal practice and risk management consultation on a confidential basis under Practice Consult. Senior lawyers provide mentoring for sole proprietors and partners of small firms under the PracMentor Scheme.
     
21.2   If you are facing any personal problems that may affect your work performance and you feel you need to speak to a counsellor on a confidential basis, you may wish to speak to a counselor under LawCare.
     
21.3 If you have any questions or require any assistance, simply e-mail our Compliance Department at compliance@lawsoc.org.sg or call 6538 2500.