Procedures for Registration of Law Firm in India
The main
requirement to register a law firm is that all the members should be registered
as practicing advocate with State Bar Council. Advocates Act and BCI
have many restrictions regarding this.
Sole
Proprietorship or One Man Company is not much advisable in Indian Legal Market.
Because BCI has always some barriers for such Legal Firms. It is better to go
for LLP Limited Liability Partnership in which you can control things as your
wish.
There are
mainly 3 types of Legal Structures in India. They are Sole Proprietorship,
Partnership, Limited Liability Partnership. The sole
proprietorship is one of the simplest business forms in which one can
operate a business. This is not a legal entity. The sole proprietorship
simply mentions a person who owns a business and is personally responsible for
its own debts. There is no any formal procedure for registering a sole
proprietorship Law Firm in India. This can be by opening a bank account in the
name of Proprietorship Firm or by obtaining the licenses required for doing a
business.
You can also
start a law firm in Partnership. Partnership firms in India are directed
through the Indian Partnership Act 1932. It is not necessary to register a
partnership firm because there are no penalties for not registering.
Information like Name of the firm, place where the firm is situated Joining
Date of partners in the firm, Name and permanent address of partners, Firm
duration etc.
Another type
of firm that you can start is Limited Liability Partnership. A limited
liability partnership (LLP) is a partnership where some or all
partners have limited liabilities. Therefore it exhibits elements
of partnerships as well as corporations. In LLP each of the
partners is not liable for other partner's misconduct or negligence. For
registration of LLP first, need to apply for Designated Partner Identification
Number (DPIN) later needs to obtain Digital Signature Certificate (DSC).
When applied
for DSC, then they will ask for a unique name for LLP Firm this will be used to
file for incorporation with MCA. At the end of this process, the Certificate of
Incorporation would be approved. Thereafter, it is necessary to get LLP name
approved by Ministry of Corporate. Every LLP requires a registered Tax Account
Number (TAN) and Permanent Account Number (PAN).
Registration
is not necessary but registering a law firm generates few rights on the firm as
well as on its partners. Each legal structure has different procedures for
registration. It is essential to consider important factors needed while
choosing the Legal structure of a Firm.
Disclaimer: All the contents are for general use and information. Consult your lawyer before acting.
Disclaimer: All the contents are for general use and information. Consult your lawyer before acting.
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All the contents are for educational purpose only. Consult your lawyer for more information.