financialtreat – will explain How to Establish a Law Firm Legally! You should know! which you will find in the following article. let’s look at this article carefully!
Before going into the discussion of how to legally set up a law firm, it helps us to know what it is. What is a Law Firm? Perhaps a more familiar term is a business firm, a term for a business partnership run by more than one person.
Indeed, the principle of the law firm is still the same. The only difference is that the firms we discuss here are more specific in the legal realm, not business as usual. And specifically this review is how to legally establish a law firm.
How to Establish a Law Firm Legally! You should know!
So simply you can understand that a law firm is a business partnership run by more than one person, which is specifically run in the field of law. For example, as described earlier, advocate’s offices, law offices, lawyers’ offices and so on.
How to set up a law firm? This question often stops in the head of a prospective law graduate or prospective advocate. And when the prospective law graduate or prospective advocate has become a law graduate or advocate, then the question of how to establish a law firm (law firm) is increasingly needed if the advocate in question wants to carry out the legal profession under a legal entity.
But before that, what is meant by a law firm? Is a law firm the same as a law office, an advocate’s office? The answer to this question depends on the status of the lawyer’s office. In this regard, a law firm is no different from other firms as a business entity.
The difference between law firms and other firms only lies in the type of business, where law firms are more of a business entity engaged in legal services that are run under a common name.
And because the establishment of a law firm is the same as the establishment of a firm in general and its legal existence is also subject to the provisions of Article 16 of the Commercial Code (KUHD).
Therefore, law firms are the same as other firms, so the minimum requirements for its establishment are the same as those of firms in general, which are established under the following conditions;
Established by an authentic deed made before a notary;
- The deed of establishment must be registered in a register that has been determined for that by the Registrar of the District Court in the jurisdiction where the Law Office is domiciled;
- The registered deed of establishment must be announced in the State Gazette.
As explained earlier, that a law firm in principle is included in the meaning of a civil partnership (Maatschap) referring to Article 1681 of the Civil Code and as explained in Article 1 number 4 of the Decree of the Minister of Law and Human Rights Number: M.11-HT.04.02 of 2004. Where the law firm exists the same as a civil partnership in the form of a firm. As a civil partnership in the form of a firm, a law firm must be established by at least two persons based on an agreement with a Notary Deed.
The provisions for establishing a firm as stated above, of course, are also because there are no special provisions that regulate business entities for the advocate profession. This means that there is no special arrangement that regulates advocates carrying out their professions, whether individually or jointly, whether in the form of a civil partnership such as a firm or in the form of a law office, law office and so on.
Nevertheless, running the legal profession as an advocate under a business entity in the form of a firm, is certainly not the same as running it in the form of a law office or advocate office which may be run individually.
Legal Firm Establishment Requirements
What are the requirements for establishing a firm? As a business actor, you must be familiar with this type of company, namely a firm. Before establishing a firm, there is nothing wrong with knowing in advance what the terms and procedures are like. Here’s the full review!
Definition of Firm
Firma is a company established on the basis of an agreement between two or more people to carry out a business using a common name. According to Articles 16-35 of the KUHD, “a firm (venootschaap onder firma) is a company established to conduct a business under a common name.”
Legal Basis of Firm Establishment
Furthermore, the government has regulated provisions regarding firms, including:
- Articles 16-35 of the Commercial Code (KUHD)
- Article 1618-1652 in Book III of the Civil Code
Terms of Firm Establishment (set up a law firm)
To be able to establish a firm, there are several conditions that you must meet, including:
- Founded by a minimum of 2 people
- Determining the name of the firm
- Designing the main goal of establishing a clear firm
- There is a domicile of the company
- Deed of Incorporation
- Firm TIN
- Have a board of directors and active members
Firm Establishment Procedure
The following is the procedure for establishing a firm, including:
Determining the Firm Name
Before placing an order for the name of the firm, first determine whether the name of the firm is the rm taken has been used or not by another firm. We recommend that you prepare 3 names as a backup when checking the name of the firm. For the selection of names in accordance with the provisions in Permenkumham No.17/2018, with the following conditions:
Written in another letter
has never been used legally by another firm in the Business Entity Administration System (SABU).
does not conflict with public order and/or decency.
not the same as or similar to the name of a state, government, international institution, unless it obtains permission from the institution concerned. Other than that, it does not consist of numbers or series of numbers, letters, or series of letters that do not form words.
Then, to make a deed of establishment of a company, there are documents that business actors must prepare, including:
- Photocopy of identity card or KTP of the founder of the company, at least 2 people.
- Photograph of the person in charge
- Photocopy of the United Nations in the last year
- Company domicile letter
- Company contract letter
- Firm name
- Management structure
The purpose and objectives of the firm’s business (entered business fields must be in accordance with the 5-digit KBLI).
Other related documents (set up a law firm)
In addition, the condition of the company must meet the requirements for the deed to be legalized. The requirement is that the company’s physical condition must be in the form of a building. If you do not meet these standards, you will not be able to make a deed.
Well, this Virtual Office can be the right choice to get a domicile or company address in a commercial or office zone. Of course, this virtual office cuts building rental costs at an affordable cost. It even cuts costs by up to 90% when you compare it to conventional building rentals.
Notary Deed Signing
Furthermore, in the signing, all parties must be present. If authorized, you must complete with a power of attorney complete with stamp duty. In addition, know the advantages and disadvantages of any firm!
Registration at Kemenkumham (set up a law firm)
After that, the notary will process the approval of the firm registration and submit an SKT (Registered Certificate) through the General Legal Administration (AHU) system of the Ministry of Law and Human Rights to obtain legitimacy.
Application for Firm TIN Registration
In order to make a firm TIN, there are a number of documents that you must prepare. Find out the complete guide to making a TIN!
Making Business Registration Number (NIB)
Since the existence of Government Regulation No. 24 of 2018 Article 1 number 12 concerning Integrated Electronic Business Licensing Services or Online Single Submission (OSS) states that NIB is a business license. Also, learn the terms and how to get the NIB. In addition, NIB is useful as a Company Registration Certificate (TDP), Customs access and Import Identification Number (API).
Business License Application
Then, apply for a business license as official proof of opening a business. Learn the business license or Trade Business License (SIUP). In the management of SIUP, a newly established company requires a business domicile as a condition for issuing a SIUP. You can use the Jakarta Virtual Office address as your business domicile.
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How to Legally Disband a Law Firm (set up a law firm)
In addition to knowing about the procedures for legally establishing a law firm, we must also know about the procedures for the legal dissolution of a law firm or according to the procedure. Regarding the procedure for the dissolution of the Firm, you can see it in Article 1646 of the Civil Code which states that there are 5 reasons for the termination of the Firm, namely:
- the will of the company or mutual agreement;
- Firm’s term ends;
- the destruction of goods or businesses carried out in the firm;
- One of the companies resigns or quits;
- One of the parties dies/under custody/declared bankrupt;
- Those are some explanations about the terms of establishment and dissolution of law firms. It seems very complicated, but even so, it happens because it maintains legal security and avoids irresponsible people.