A lawyre who wish to open his firm shall apply for its registration first. Only lawyers who are duly admitted as advocates and who are duly enrolled in a State bar can set up a law firm.
A person may be admitted as an advocate on aState roll when following things are fulfilled-
- He must be a Citizen of India.
- Has completed the age of 21 years.
- Has obtained a degree of law from recognized university which is recognized by Bar Council of India.
In what form should a Law firm function- Sole proprietorship, Partnership or LLP
- Sole Proprietorship- Single person brings in the Finance and manges all important function. Here since there is no distinction between individual and the Legal entity, the individual’s assets is liable to pay off any debts that may incur in future. Registering of this is very simple task as it does not contain too many compliances. A Bank account may be opened in the name of the firm which requires a letterhead of the firm with its address of operation, letter from CA regarding the nature of the business.
- Partnership Firm- When people come together to bring their resources, knowledge and most importantly connections and clients, they may decide to form a Law firm in partnership. The profit sharing is decided upon by the Partners mutually relying on various factors like operations, management etc.
- General Partnership- This is considered as the easiest form of Business. The partners have unlimited liability which means that their assets are personally liable for the debts of the firm. A Partnership is required to registered but most importantly it is also a wise option so as to give it a legal standing.
Steps to getting Partnership Firm Registration-
- Partnership deed with all essential details like name of the firm, details o the partners, capital contribution, profit sharing etc.
- PAN card to be applied for in the name of Proprietorship firm.
- A bank account to be opened in the name of Partnership Firm
Documents required for Registration
- Application for Partnership firm in Form 1.
- Certified copy of Partnership deed
- PAN card and identity proof of the partners.
- Pan card of the partnership firm
- Proof of registered office
- Limited Liability Partnership- It offers more benefits of both private Limited Company and general partnership. One partner is not liable for the conduct of other partners.
Steps involved in LLP Registration
- Name Approval
- Obtaining the Digital Signature Certificate, DIN Number.
- Obtaining PAN number
- Filling up the incorporation form with supporting documents
Documents Required
- For registered office any utility bills or scan copy of rent agreement with NOC from the owner.
- From Partners
- Affidavits
- PAN card or passport of election id.
- Latest bank statement/ telephone or mobile bill.
- Voter id/ Driver’s License.
- Scan copy of signature.