Administrative Measures for Law Firms (Revised in 2012)

Administrative Measures for Law Firms (Revised in 2012)


Administrative Measures for Law Firms (Revised in 2012)

Order of the Ministry of Justice No. 125

November 30, 2012

(Promulgated by the Order of the Ministry of Justice No.111 on July 18, 2008 and revised in accordance with the Order of the Ministry of Justice No. 125 released on November 30, 2012)

Chapter I General Provisions

Article 1 In order to regulate the establishment of law firm and strengthen the supervision and administration of law firm, these Measures are formulated in accordance with the Law of the People's Republic of China on Lawyers (hereinafter referred to as the Lawyers Law) and other relevant laws and regulations.

Article 2 Law firms are practice institutions of lawyers. A law firm shall be established and acquire a practicing license in accordance with the law.
The establishment and development of law firms shall, based on the demand of national and local development of economy and society, achieve reasonable distribution and balanced development.

Article 3 A law firm shall, in accordance with the law, conduct business, intensify its internal management and supervision over the practice of lawyers and bear corresponding legal liabilities.
No organization or individual may illegally intervene in the practice of any law firm or impair the lawful rights and interests thereof.

Article 4 The judicial administrative organs shall supervise and guide the law firm in accordance with the Lawyers Law and these Measures.
The lawyers associations shall, in accordance with the Lawyers Law, charters of the associations and the industrial norms, require law firm to conduct professional self-discipline.

Chapter II Conditions for Establishment of Law Firm

Article 5 A law firm may be established by lawyers as partners, by an individual lawyer, or with the capital contribution made by the State.
A partnership law firm may be established in the form of ordinary partnership or special ordinary partnership.

Article 6 The establishment of a law firm shall meet the following basic requirements:
1. It has its own name, domicile and articles of association;
2. It has lawyers who comply with the provisions of the Lawyers Law and these Measures;
3. The promoters shall have certain practicing experiences and may work as full-time lawyers, and none of them may have any record of business suspension as punishment due to malpractice during the three years prior to establishment;
4. It has assets reaching the amount as stipulated in these Measures.

Article 7 An ordinary partnership law firm to be established shall meet the following requirements in addition to those as stipulated in Article 6 of these Measures:
1. There is a written form agreement;
2. There are three or more partners as promoters;
3. The promoters shall have three or more years of practicing experiences and may work as full-time lawyers; and
4. There are assets of CNY300,000 or more.

Article 8 A special ordinary partnership law firm to be established shall meet the following requirements in addition to those as stipulated in Article 6 of these Measures:
1. There is a written agreement;
2. There are 20 or more partners as the initiators;
3. The promoters shall have three or more years of practicing experiences and may work as full-time lawyers; and
4. There are assets of CNY10 million or more.

Article 9 A law firm to be established by an individual shall meet the following requirements in addition to those as stipulated in Article 6 of these Measures:
1. The promoter shall be a lawyer with 5 or more years of practicing experiences who may work as a full-time lawyer; and
2. There are assets of CNY100, 000 or more.

Article 10 A law firm to be established with capital contribution made by the State shall, in addition to satisfying the general requirements as provided in the Lawyers Law, have at least two lawyers who comply with the provisions of the Lawyers Law and are able to work as full-time lawyers.
Where it is necessary for the State to make capital contributions to establish a law firm, the local judicial administrative organs at the county level shall be responsible for the preparation of establishment. Prior to the application for approval of establishment, the relevant departments of the local people's government at the county level shall grant the law firm compilation and provide it with sufficient funds.

Article 11 The judicial administrative organs of a province, autonomous region or municipality directly under the Central Government shall, in accordance with the status of local economic and social development and the development of the lawyer industry, make proper adjustments to the amounts of assets for the establishment of ordinary partnership law firm, special ordinary partnership law firm and individual law firm as set forth in these Measures and implement them upon approval by the Ministry of Justice.

Article 12 The name of a law firm to be established shall conform to the provisions of the Ministry of Justice on the administration of names of law firms and a name retrieval shall be made in accordance with relevant provisions prior to the application for approval of establishment.


Article 13
The list of candidate for the principal of a law firm shall, together with the application for approval of establishment, be submitted to the examination and approval organ for examination and approval.
The principal of a partnership law firm shall be elected among the partners and by all partners of the law firm. The principal of a law firm established with State capital shall be elected upon recommendation of the lawyers of this law firm and shall be subject to consent by the local judicial administrative organs at the county level.
The initiator of an individual law firm shall be the principal of this law firm.

Article 14 The articles of association of a law firm shall cover:
1. The name and domicile of the law firm;
2. The aim of the law firm;
3. The organization form of the law firm;
4. The amount and sources of assets for establishment;
5. The duties, and procedures for the appointment and change of the principal of the law firm;
6. The arrangement and functions of the decision-making and management organization of the law firm;
7. The rights and obligations of lawyers of the law firm;
8. The major management systems of the law firm on practice, charges, financial affairs, distribution, etc.;
9. The causes, procedures and liquidation measures for the dissolution of the law firm;
10. The interpretation and modification procedures for the articles of association of the law firm; and
11. Other matters necessary to be specified.
For the establishment of a partnership law firm, the articles of association shall clearly state the name of the partners as well as the amount and way of capital contribution of the partners besides those as mentioned above.
The constitutions of a law firm may not violate any relevant law, regulation or rule.
The articles of association of the law firm shall come into force as of the day on which the judicial administrative organs of the province, autonomous region or municipality directly under the Central Government approves the establishment of the law firm.


Article 15
A partnership agreement shall clearly state:
1. The partners, including their names, domiciles, identity card numbers and practicing experiences;
2. The amount and manner of the capital contribution of each partner;
3. The rights and obligations of the partners;
4. The duties, and procedures for the appointment and change of the principal of the law firm;
5. The duties and rules of procedure of the meetings of partners;
6. Distribution of profits and assumption of debts;
7. The conditions and procedures for becoming a partner, partnership termination and removal of a partner;
8. The methods and procedures for settling disputes among partners, and liabilities of partners for breaching the partnership agreement;
9. The procedures for interpretation and revision of the partnership agreement; and
10. Other matters necessary to be clearly specified.
The partnership agreement of the law firm may not violate any relevant law, regulation or rule.
The partnership agreement shall, upon the consent and signature of all partners through negotiation, come into force as of the day on which the judicial administrative organs of the province, autonomous region or municipality directly under the Central Government approves the establishment of the law firm.

Chapter III Licensing Procedures for the Establishment of Law Firm

Article 16 An application for the establishment of a law firm shall be subject to the preliminary examination of the judicial administrative organs of a districted city or a district (county) of the municipality directly under the Central Government and then be submitted to the judicial administrative organs of the province, autonomous region or municipality directly under the Central Government for examination and approval, which shall decide to approve or disapprove the establishment.

Article 17 To apply for the establishment of a law firm, the applicant shall submit the following materials to the judicial administrative organs of a districted city or of the district (county) of the municipality directly under the Central Government:
1.
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