Law Firm Establishment: Procedure for establishing a Law Firm in India

law firms establishment in india
law firms establishment in india

Procedure for establishing a Law Firm in India



In India we have 3 type of Judicial courts i.e. District court, High Court and Supreme Court. An advocate in India can practice in any courts in India. All the procedures are same and wherever you want to do practice you can get started.

The basic requirement to start a law firm is a Law degree (LLB) from any Indian University or Foreign University which is recognized by Bar Council of India and least 21 year old.

You need to enroll yourself with any state Bar Council of India after getting a degree.

In India either Sole Proprietorship or Partnership firm can be started.

If you choose to start sole proprietorship is chosen then all the functions of management, decision making, financing, record keeping, tax bearing are done by the single person.

If you choose to start a partnership firm there are partners in a firm then work would be assigned and divided as per the specialization all the partners will be entitled to pay tax.


Expense of establishing a Law Firm

A maximum of about Rs 2 lakhs is sufficient to have a proper office at home and it may vary depending upon the location of office, strength of team and the setup of the office.


Limited Liability Partnership-

A limited liability partnership is a more protected form of partnership than a regular general partnership. The main benefit is that the assets of the partners are protected in the event of dispute. Most law firms have shifted to this form of partnership after it was introduced in India.

The name itself indicates that the liabilities of the partners are limited to their contributions to the business. Another benefit is that the partners are protected against the negligence and incompetence of other partners.




Registration of LLP-

For registering an LLP, an application is to be made for a Designated Partner Identification Number (DIPN). Once DIPN is received, then a Digital Signature Certificate is required. So the person starting a law firms applies for a DSC. When the process of application begins, a unique for the LLP is asked for. This name is used for files for incorporation of the firm with the Ministry of Corporate Affairs. When the process of incorporation is completed, a certificate of incorporation is received. The name of the LLP is to be approved by the MCA. Every LLP needs a registered Permanent Account Number(PAN) and Tax Account Number (TAN).


Small firm vs. Big Firm

Both Small law firms and big law firms have their pros and cons. A small law firm is small in size and practice areas. Generally, small law firms don’t have a wide variety of practice area, thus limiting the number of clients. However, big law firms have departments specializing in nearly all branches of law, thus they have a huge clientele. The clients of big law firms mostly include huge Corporations and Business Houses.  They number of people working in a big law firm is so huge that there is very minimal amount of interaction between people of different departments. This is not the case in a small law firm. The number of advocates and associates range from around two to ten. The associates and partners know each other and they all work together in complicated legal matters.\


Role & Responsibilities

  1. The roles and responsibilities of a law firm, i.e. the partners are extended in all directions. The financial and business management of the firm is to be looked after by managing the financial aspects of team and division, achieving superior financial performance, improving commercial awareness etc.
  2. They are also responsible for maintaining proper work ethics, they should focus on development of the members of the team and help in improving their skills.
  3. Partners are also responsible of developing business, knowing strengths and weaknesses of the firm and individuals.
  4. One of the most important functions is to maintain relationships with clients and always keeping the client happy.




Some Kinds of Law Firms and their Functions:

There are various types of law firms depending on the work they do and the number of advocates they have. These law firms can be divided in the following types:

  1. Solo Law firms- are run by a single lawyer. Generally solo law firms deal in a variety of aspects of law, but there are others which may specialize in a particular field of law.
  2. Small Law firms- also known as “boutique” law firms generally comprise of 2-10 attorneys. This is a close knit law firm where all the members collaborate with each other on complicated legal matters.
  3. Large Law firms- are big firms whose size range from several dozens to several thousand of advocates and employees. These firms have big law departments and are generally specialized in a variety of law fields.
  4. Litigation Law firms- these firms focus on litigation and representing clients in the court of law.
  5. Transactional Law firms- these are firms which deal in transactional matters relating to heavy paperwork and documentation.
  6. Criminal Law firms- are those firms which deal with criminal matters, i.e., they practice the criminal law and protect or help their clients in case of criminal charges.


Harshil Vaishnav is a law student pursuing B.B.A.LL.B at New Law College, Bharati Vidyapeeth University and contributes and utilizes his skills and strengths effectively in the field of law.


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