Administrative Measures for Law Firms (Revised in 2018)

Administrative Measures for Law Firms (Revised in 2018)
Administrative Measures for Law Firms (Revised in 2018)

Order of the Ministry of Justice of the People's Republic of China No.142

December 5, 2018

(Promulgated by the Order of the Ministry of Justice No.111 on July 18, 2008, amended in accordance with the Order of the Ministry of Justice No.125 on November 30, 2012, revised in accordance with the Order of the Ministry of Justice No.133 on September 6, 2016, and amended by the Order of the Ministry of Justice No.142 on December 5, 2018)

Chapter I General Provisions

Article 1 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 in order to regulate the establishment of law firms and strengthen the supervision and administration of law firms.

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, in accordance with the needs of the State and local economic and social development, achieve reasonable distribution and balanced development.

Article 3 A law firm shall be unswervingly guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to and enhance the Communist Party of China's (CPC's) comprehensive leadership in the work relating to lawyers, resolutely safeguard the authority of the CPC Central Committee with Comrade Xi Jinping as the core and its central and unified leadership, regard supporting the leadership of CPC and the socialist rule of law as the fundamental requirement in its practice, raise all lawyers' awareness and commitment of following the path of Socialist rule of law with Chinese characteristics.
A law firm shall, in accordance with the law, carry out business, intensify its internal management and supervision of the practice of lawyers and bear corresponding legal liability.
No organization or individual may illegally intervene in the practice of any law firm or impair the legitimate rights and interests thereof.

Article 4 A law firm shall strengthen the building of the CPC organization and give full play to the role of such CPC organization as stronghold and the exemplary role of lawyers who are CPC members.
A law firm with three or above CPC members shall establish a grass-roots CPC organization and hold elections by the end of a term of office in accordance with the Constitution of the Communist Party of China and as approved by the higher-level CPC organization. A law firm with less than three CPC members shall carry out the CPC building through jointly establishing a CPC organization with other law firms, or following the instructor on CPC building assigned by a higher-level CPC organization or other methods, and shall set up its own a grass-roots CPC organization in a timely manner when relevant conditions are met.
A law firm shall establish and improve a working mechanism for the CPC organization to participate in the decision-making and management of the firm and provide support in terms of site, personnel, funding or other support for the CPC organization to carry out relevant activities and work.

Article 5 Judicial administrative organs supervise and guide law firms in accordance with the Lawyers Law and these Measures.
Bar associations shall, in accordance with the Lawyers Law, charters of the associations and industrial norms, require law firms to conduct professional self-discipline.
Judicial administrative organs and bar associations shall, in combination with their supervision and administration duties, strengthen the instruction on CPC construction in the legal profession.

Article 6 Judicial administrative organs and bar associations shall establish and perfect a reward system for law firms, and set comprehensive and individual commendation items in accordance with the relevant provisions, to commend and award those law firms that have made outstanding contributions to safeguarding the legitimate rights and interests of the people and promoting economic and social development and the rule of law in China.

Chapter II Conditions for the Establishment of a Law Firm

Article 7 A law firm may be established by lawyers as partners or by an individual lawyer, or funded by the State.
A partnership law firm may be established in the form of ordinary partnership or special ordinary partnership.

Article 8 A law firm to be established 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 experience and may work as full-time lawyers, and none of them have any record of business suspension as punishment during the three years prior to the application for establishment; and
4. it has assets reaching the amount as stipulated in these Measures.

Article 9 An ordinary partnership law firm to be established shall meet the following requirements in addition to those as stipulated in Article 8 of these Measures:
1. there is a written partnership agreement;
2. there are three or more partners as promoters;
3. the promoters shall have practicing experience of three or more years and may work as full-time lawyers; and
4. there are assets of CNY300,000 or more.

Article 10 A special ordinary partnership law firm to be established shall meet the following requirements in addition to those as stipulated in Article 8 of these Measures:
1. there is a written partnership agreement;
2. there are 20 or more partners as promoters;
3. the promoters shall have practicing experience of three or more years and may work as full-time lawyers; and
4. there are assets of CNY10 million or more.

Article 11 A law firm to be established by an individual shall meet the following requirements in addition to those as stipulated in Article 8 of these Measures:
1. the promoters shall have practicing experience of five or more years and may work as full-time lawyers; and
2. there are assets of CNY100,000 or more.

Article 12 A law firm to be funded 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 fund a law firm, the local judicial administrative organ at the county level shall be responsible for the preparation for 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 a staffing quota and provide it with sufficient funds.

Article 13 The judicial administrative organ of a province, autonomous region or municipality directly under the Central Government may, according to 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 firms, special ordinary partnership law firms and individual law firms as set forth in these Measures and implement the same upon approval by the Ministry of Justice.

Article 14 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 name retrieval shall be made in accordance with the relevant provisions prior to the application for approval of establishment.

Article 15 The 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 from among the partners and by all partners of the law firm. The principal of a law firm funded by the State shall be elected upon recommendation of the lawyers of this law firm and shall be subject to consent by the local judicial administrative organ at the county level.
The promoter of an individual law firm is the principal of this law firm.

Article 16 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 organizational 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 setup and functions of the decision-making and management bodies 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, and distribution;
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;
11. the form, status, role, duties and powers of the CPC organization in the law firm, working mechanism for it to participate in the decision-making and management of the law firm and supporting measures for CPC building; and
12. other matters necessary to be specified.
For the establishment of a partnership law firm, the articles of association shall clearly state the names of the partners as well as the amount and way of capital contribution of the partners besides those as mentioned above.
The articles of association of a law firm may not violate any relevant law, regulation or rule.
The articles of association of a law firm shall come into force as of the day on which the judicial administrative organ of the province, autonomous region or municipality directly under the Central Government approves the establishment of the law firm.

Article 17 A partnership agreement shall clearly state:
1. the partners, including their names, domiciles, identity card numbers, and practicing experience as lawyers;
2. the amount and way 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 to and assumption of debts by partners;
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 liability of partners for breaching the partnership agreement;
9. the interpretation and modification procedures for the partnership agreement; and
10. other matters necessary to be specified.
The partnership agreement 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 organ 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 a Law Firm

Article 18 An application for the establishment of a law firm shall be subject to the preliminary examination by the judicial administrative organ at the level of a city divided into districts or of a district (county) of a municipality directly under the Central Government and then be submitted to the judicial administrative organ of the province, autonomous region or municipality directly under the Central Government for examination, which shall decide to approve or disapprove the establishment.

Article 19 To apply for the establishment of a law firm, an applicant shall submit the following materials to the local judicial administrative organ at the level of a city divided into districts or of a district (county) of a municipality directly under the Central Government:
1.
  ......
Please consent to the LexisNexis Terms and Conditions and Privacy Policy.