At some point of time every lawyer thinks of forming a Law Firm, as the Law Firm brings corporate status to a Lawyer and many more opportunities. So the next question is how to register a Law Firm in India?
Main requirement to set up a law firm in India that “He is a citizen of India and completed the age of 21 years and having a degree in law from any university in India recognized by the Bar Council of India; OR from any university outside India which is recognized by the Bar Council of India.
Types of Law Firms in India.
A law firm is an organization that represents various government agencies, corporations, individuals in the court of law. Legal services are centered on analyzing legal challenges and providing fair and sound advice to attain justice. Most of the individuals in the legal field aspire to establish a legal firm of their own.
Before establishing a legal firm it is vital to know about the process of establishing, registering, and other legal-related documents. Registration of legal firms not only helps in creating a mark but also safeguards the rights of that organization.
This Law Firm handle by a single person, who is the owner. All decisions of management, records, maintenance, financial & tax will be take care by him alone and the tax will be applicable as per his personal income.
Documents required (Sole Proprietorship)
- Shop Establishment Registration Certificate.
- Letter of CA regarding nature of business.
- Firm Letterhead with name and address.
- Stamp having name of proprietorship firm.
- Address and ID Proof of proprietor alongwith office address proof.
This Law Firm handle by two or more partners to the firm and all the partners can give their opinions and decisions as per their choice and experience in their fileds.
Partnership firms in India are governed by the Indian Partnership Act, 1932 and it is not mandatory to register partnership firm. That the tax will be applicable at the flat rate of 30%.
- Application for Registration having Name of Firm, Place, Joining date of partners, duration of firm, date of establishment, permanent addresses of partners etc. alongwith supporting Affidavit alongwith prescribe fee.
- Certified copy of the Partnership Agreement.
- Proof of place of business.
Limited Liability Partnership:
In this law firm (LLP) the partnership work in protected ways compare to a common partnership. That the advantage of an LLP Law Firm is, to protect the personal assets of partners in the case of dispute arise between partners. Now a days most of the Law Firms (Partnership) are adopting this model after it’s enactment in India.
In LLP model the liabilities of its partners is limited to their contributions to the business and protection them from the misdeeds, negligence, or incompetence of the other partners.
(Limited Liability Partnership)
- Apply for designated Partner Identification Number (DPIN).
- Apply for Digital Signature Certificate (DSC).
- Then apply for the unique name of LLP Firm which will be used to file incorporation with the MCA. Thereafter certificate of Incorporation will be issued.
- Thereafter approval from Ministry of Corporate required to get the LLP name.
Remember that every LLP needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN).
Sri Prem Joshi
Advocate, Delhi High Court