Can Chinese lawyers practice in Singapore? Singapore law firm set up process, license application, bank account details

With the reform of Singapore’s legal training system and bar admission policy, Chinese law firms have set their sights on the Singapore market.

Whether it is setting up a branch office, registering a company, applying for a license, or recruiting lawyers and management team, understanding the local legal environment, practice requirements and operational procedures is the key to a smooth landing of a law firm. This article will provide a comprehensive analysis of the operational guidelines for Chinese law firms entering Singapore.

I. Graduating with a Singapore Bar Pass?

Institutional change and new signals for talent development

On February17this year, theLaw Society of Singapore(Law Society of Singapore) announcedthe launch oftheJunior Lawyers Professional Certificate Programme(JLP)in May. (JLP) in May;

The training program aims to establish a uniform, structured skills training standard for lawyers with less than five years of experience, covering various dimensions such as client and case management, corporate law, dispute resolution, technology innovation and cross-border document drafting.
This initiative reflects a shift in the focus of the Singapore legal services market fromspecialized knowledgetolegal skills + business acumen + cross-border capabilities.

On April17, Singapore also announced adjustments to its lawyer training system:

Law graduates canqualifyas “non-practitioner lawyersafter passing their final exams, without having to complete a traditional training contract. This system allows graduates to enter paths such as legal counsel, in-house legal affairs, and management positions. The Ministry of Justice emphasizes that bothpracticing lawyersandnon-practicing lawyersare regarded as officers of the court and have a role in upholding the rule of law.

These two pieces of news have two important implications for Chinese law firms considering setting up a law firm or branch office in Singapore:

First, the structure of the talent training and legal services market is changing:

Young lawyers/lawyers are upgrading their skill sets and diversifying their choices. For law firms, this change in context should be taken into account when hiring and training Singapore-based or Singapore-bound lawyers.

Secondly,there is no single path forlawyersin Singapore:

There are bothadvocate & solicitorandnon-practicing lawyerroles, with different divisions of labor and functions.

For Chinese law firms setting up a Singapore entity and wishing to provide local legal services, it is important to clarify its business orientation: whether it is primarily a legal advisor/cross-border service role or a representative in court. The former may be configured as anon-practicing lawyer+ service network; the latter is subject to more stringent firm establishment and lawyer qualification requirements.

Source: United Morning Post, Schematic diagram

II. The Singapore Lawyer Path:

Critical junctures in the transition from college to practice competency

1, in Singapore to read law / lawyers major: background and orientation

If you choose to study law in Singapore, you can usually choosean institutionsuch as National University of Singapore (NUS), Singapore Management University (SMU) or Singapore University of Social Sciences (SUSS) that offers Law (LLB) or Master of Laws (LLM)or Master of Laws(JD) programs.
If you wish to become anAdvocate (Barrister-at-Law)in Singapore after graduation, you will have to fulfill the country’s bar admission requirements. According to the Singapore Institute of Legal Education (SILE) and others, being aqualifiedpersonis a requirement for admission.

It is worth noting, however, thateven after studying and graduating from a law program in Singapore, it does not automatically meangraduating as a barrister.There are several key thresholds under the current system:

Age and character requirements:21years of age and good character.

Degree background: A recognized law degree, with additional requirements (e.g. grades, rankings) for overseas degrees.

Practice training period(practice training period) or barristers’ apprenticeship: a period of apprenticeship or training that must be completed under some regimes.

Pass the bar exam (PartA/Part B), etc.

Therefore, for Chinese law firms to consider assigning lawyers or recruiting those who graduated from Singapore with a law background, or encouraging lawyers to go to Singapore for further studies, the pathway must be clearly understood in all its aspects.

2.Distinction betweenbarristers” vs. “non-practicing lawyers

One important change in Singapore’s newly restructured system is that law graduates canqualifyas “non-practitioners(non-practitioners)by passing a graduation examination, without having to complete a traditional training contract.

It is noted that such non-practicing lawyers, while not able to practice in law firms (i.e., not able to actually represent litigation in court as a representative before the court), may serve as legal advisors, experts, in-house legal services, and other functions.

The specific differences can be summarized as follows:

Advocate & Solicitor:A person who is able to appear before the courts of Singapore to represent litigants and is required to be admitted as an Advocate&Solicitor, holda pupillage/training period, pass an examination, obtain a practicing certificate, and keep his/her registration and license up to date, amongst other things.

Non-Practitioner Lawyer(Non-Practitioner Lawyer): after qualification, they cannot be used as a court representative in a law firm, but have the role of a legal advisor and can work within institutional, corporate, academic, and legal teams. The press release emphasizes thatboth practicing and non-practicing lawyers are given the status of court officials.

From the perspective of Chinese law firms,there are two ways to position your businessif you go to Singapore to set up a law firm or branch office:

If the main focus is ontrial/local representationservices, it is necessary to have lawyers qualified as trial lawyers and to set up a law firm entity licensed to practise locally in Singapore.

If the main focus is oncross-border legal advice + China client service + Singapore jurisdiction or international commercial law, then there is the option of employing or registeringnon-practicing lawyersor suitably qualified local lawyers/registered foreign lawyers as part of the service network, without necessarily needing a full courtroom litigation function. A full courtroom function is not necessarily required.

3. Implications for Chinese law firms recruiting law background personnel in Singapore

If recruiting Singaporean legal graduates: it needs to be clarified whether their qualifications will enable them to be trial lawyers or whether they will act in an advisory role.

If arrangements are made for Chinese lawyers to study or practise in Singapore, it is necessary to find out whether they are eligible to becomequalified personsand whether they are able to apply for admission as barristers.

When setting up a law firm or branch office, it is important to be clear about the composition of the team: it should include both local lawyers (qualified persons), China-accredited lawyers, and even non-practicing lawyers’ roles, so as to strike a balance between cost and functionality.

Source: United Morning Post, Schematic diagram

Guide to Applying for a Singapore Law Firm License

Chinese law firm to set up a law firm in Singapore: company registration + license application + bank account opening + important steps for staff employment:

1、Choice of law firm type and license/licenceclassification

In Singapore,there are various types oflaw firm entities and their structures for operating legal services under the Legal Services Regulatory Authority (LSRA): these include “Singapore Law Practice (SLP)”, “Foreign Law Practice (FLP)”, Joint Law Venture (JLV)”, “Formal Law Alliance ( FLA )” and so on. ( FLP )”, “Joint Law Venture (JLV)”, “Formal Law Alliance (FLA)”, and so on.

First of all,Chinese law firms have to determine the positioning of their proposed business in Singapore, be it:

Fully Local Law Firm (SLP)Can practice Singapore law and serve local clients.

Branch/Registered Form of Foreign Law Firm (e.g.FLP/RO/Representative Office)mainly for foreign law, cross-border services, or as apromotional/resident office.

Collaborative Law Firm Structure (JLV / FLA)A joint venture or alliance with a local law firm.

The license, registration process and team requirements will vary based on the above positioning.

2. Company registration (entity formation)

Regardless of which of the above structures is used, registration of the corporate entity is a prerequisite. The following organizes the key aspects:

If set up as a local company, it can beregisteredin the BizFile systemthrough the Accounting and Corporate Regulatory Authority (ACRA).

If you are setting up abranch/representative officein Singapore as a foreign company, you may refer tothe guide“Registering as a branch of a foreign company”.

Upon registration, at least one Singapore resident (e.g. acitizen/permanent resident or a holder of a suitable pass)is required to be appointedas the principal or authorised representative ofthe company.

In the case of a limited liability partnership (LLP), the foreign partner is required to employ a local resident as amanageror supervisor.

The registration process is outlined as follows: select an entity formsubmit name for approvalregister the company and obtain a UEN(Unique Entity Number)update to the Law Firm License Application (see next section for details) and complete other compliance.

3. Application/Registration Process for Law Firm License

Concurrently with or after an entity’s registration, a law firm mustfile an application for licensure or registrationwith the LSRA .According to the MLAW Guidelines:

Specific steps include:

Login to LSRA e-Services using SingPass.

Completion and submission oftheNew Law Firm Entitylicense/registration form and payment of the application fee. The process usually takes about3to16weeks (depending on circumstances and completeness of information).

Upon approval,LSRA issues an“in-principle approval” letter. The entity is then required to register with ACRA(except for certain types).

After registering the entity, it must update the UEN totheLSRA system, uploadtheprofessionalindemnityinsurance (professional indemnity insurance) documents, and pay the license or registration fee.

Establishing an office and conducting businessduring thelicense period(e.g.,5 years).

In addition, if the firm contains foreign lawyers or foreign partners, additional applications are required: e.g. registration of foreign lawyers, approval of shareholding of partners,control of the scope ofpractice of Singapore law by foreign lawyers, etc.

4. Bank account opening and fund management

After the establishment of the entity’s bank account, is an important part of the business. Although there is no exclusive guide for law firms to open bank accounts, here are a few practical suggestions:

Choose a bank that has a well-served corporate account in Singapore and supports cross-border operations.

Prepare company registration documents (company profile,list of directors/partners), documents related to law firm license, compliance certificates, statement of source of funds, etc.

If there are foreign posted lawyers or employees, foreign exchange/cross-border fund flow reviews need to be considered.

It is recommended to set up a dedicated solicitors’trust/client money account (if receiving local client money in Singapore) and to ensure compliance with client money segregation mechanisms.

Althoughthe regulations on the establishment oftrust accounts for clients of law firmsare not detailed in local public information, from the compliance point of view, reference should be made to the usual practice of law firms and the requirements of banks.

5. Employee Recruitment and Immigration Channel

Law firms (or branch offices) operating in Singapore need to consider the recruitment of local staff, the posting of foreignlawyers/staff and the required work passes. The key is as follows:

Local Lawyer:If a Singapore registered lawyer is appointed, he/she should be admittedas Advocate & Solicitoror a registered foreign lawyer and be admitted to the Law Society of Singapore.

Foreignlawyers/employees:If a Chinese law firm intends to send lawyers from its head office to Singapore, it needs to apply for a Singapore Ministry of Manpower (MOM) work pass (e.g. EP,S Pass, etc.) and note that its duties, salary and qualifications are in line with local regulations.

Registration of foreign lawyers:If a foreign lawyer intends to practise in Singapore, he/she mustbe registered as a “foreign practitioner” through the LSRA or registered with the SICC (if he/she intends to participate in the SICC) for recognition.

Employment contracts and professional training:As the Singapore legal services market is focusing on training for junior lawyers (e.g.,the JLPprogram), firms may consider including newly recruited lawyers in this type of training in order to prepare for quality enhancement and reduce staff turnover.

6.Operational and compliance matters

Firms must apply for and renew practisingcertificatesfor all practising lawyers.

Firms are required to purchase professionalindemnity insuranceand upload it to the LSRA system.

Law firms should ensure that their names, advertisements, and service content are compliant: e.g., not misleading, duplicating the name of an existing firm, etc.

If engaged in litigation representation (barristers’ services), the professional conduct and discipline of Singapore lawyers must be strictly adhered to.

If cross-border advisory services are mainly provided (instead of appearing in local litigation), care should still be taken to set out the scope of services, whether local legal advice is involved, client compliance, etc.

Source: United Morning Post, Schematic diagram

IV. Establishment ofbranch officesby Chinese law firms

Strategy and Preparation in Singapore

Establishinga “branchor representative office is slightly different from establishing a new law firm entity. The following is an overview of the three dimensions of strategy, preparation, and implementation:

1. Branch positioning and functional design

Chinese law firms setting up a branch office in Singapore should first clarify their positioning:

Is it as the headquarter of China law firms in Singapore, mainly responsible for contacting clients, market development, cross-border legal services, and synergies with the headquarter?

Or setting up an independently operated law firm entity to provide Singapore legal services directly and engage local lawyers?

Branches that primarily serve Chinese clients (e.g.,China-Southeast Asia, orChina-Singapore cross-border transactions, M&A, compliance) may focus more oncross-border advisory services, while those that wish to provide local litigation or local client services in Singapore will need to prepare on afirm entity”model. If you wish to provide local litigation or local client services in Singapore, you will need to prepare under the law firm entity model.

After the orientation is clear, the registration of the branch office is optional:

Headquartered Chinese company registersa “foreign company branchorrepresentative officemodelin Singapore.

Or set up a local Singapore entity (e.g. a limited company/lawpartnership/LLP) and state that it is abranch office.

2. Key matters for branch office preparation

The following preparations are recommendedfor thebranch officemodel:

①Corporate entity and registration

Headquartered overseas law firms should check whether it is permissible to register a Singapore branch or representative office in the name of the parent company.

After registeringwith ACRA , ensure that all local principals or authorized representatives in Singapore are separated to comply with local regulatory requirements.

Determine the type of legal services to be used by the branch (foreign law services, international commercial, Chinese and English legal counsel, etc.) and select the applicable type of firm (e.g.,FLP/RO).

②License/Registration Procedures

Even as a branch office, you may still need toregister or be licensedwith the LSRA if you provide legal services.Seethe “how do we set up a law practice”process.

Note:A “Representative Office (RO)is generally used for promotion/liaison/market development purposes only and cannot provide substantive legal services. If the branch intends to provide genuine legal advice or representation, it must bein-contractorregistered firm.

③ Bank accounts and fund layout

The branch can set up a bank account for the management of Singaporean client monies, staff payroll, and operating expenses.

Singapore’s Anti-Money Laundering (AML) /Counter-TerroristFinancing (CFT) compliance requirementsshould be taken into account when accepting payments from clients or delivering legal services.

It is advisable to open an account with a bank that is familiar with the fee structure of cross-border lawyers/professional services and set up a dedicated trust or client money account (if applicable) to enhance trust.

④ Department of Human Resources

Local Recruitment:Local Singapore lawyers or legal advisors may be recruited to provide local market understanding and service capabilities.

Stationed team:China headquarter can send lawyers or partners to Singapore, the team needs to apply forEPor related work pass.

Training mechanism:Consider including new lawyers or personnel inlocal training programssuch as JLP to enhance the team’s ability to communicate with the local market.

Management system: the branch needs to have a clear governance structure, reporting mechanism, security compliance system (e.g. client data confidentiality, professional liability insurance, etc.).

3. Suggested process for implementing steps for the establishment of branch offices

The following is an example of a Chinese law firm setting up a branch office in Singapore and the suggested implementation process is as follows:

Strategic positioning and feasibility analysis:Define market objectives (e.g., serving Chinese companies setting up in Singapore, cross-border M&A, contract review in Singapore jurisdictions, etc.); analyze the need for local court capacity in Singapore or an advisory role only.

Choose the form of registration:consider registering as a branch or representative office of a foreign company if you are primarily a cross-border advisor; consider registering as a local entity law firm if you need local litigation representation.

To register a corporate entity:submit an applicationat ACRA through BizFile to obtain a UEN ; at the same time appoint a local manager or authorized representative. Refer to“Registering as a branch of a foreign company”.

License application/firm registration:Depending on the type of service,an application is filedwith the LSRA .If set up as a local law firm entity,a license such as SLP/FLP is required.Refer to“Apply for a license or registration for a new law practice entity”.

Bank account opening and funding structure:selection of banks to open accounts, establishment of operating accounts and client money accounts (if applicable), and establishment of cross-border fee collection mechanisms.

Recruitment and team building:Recruitment of suitable Singaporean lawyers or legal advisors, or assigning lawyers to the China headquarters; applying for work permits, signing contracts, and clarifying the division of responsibilities.

Training and Compliance System Construction:Arrange professional training (e.g. JLP)for local lawyers for the team, organize knowledge sharing between the firm and its branches; construct systems for client data confidentiality, intellectual property rights, anti-money laundering, professional liability insurance, and management of client trust funds.

Opening operations and marketing:the branch can organize opening events, participate in cross-border M&A forums,networkwith local lawfirms/chambers of commerce, and clarify service positioning and client communication mechanisms.

Ongoing compliance and annual review:attention to renewal of firm licenses, renewal of solicitors’ practicing certificates, practice complaints and disciplinary mechanisms, client protection mechanisms.

Source: United Morning Post, Schematic diagram

Conclusion:

It should be noted that Chinese lawyers wishing topractisebefore the courtin Singaporemust meet the qualification thresholds to become barristers; if they are merely acting as consultants or project lawyers in law firms, they may considernon-practising lawyersor cross-border barristers arrangements.

Overall, as a regional legal service center, Singapore has an excellent rule of law environment, an English communication advantage, and geographic and institutional advantages connecting China and Southeast Asia.

The establishment of a base here by the China Law Firm is not only an important step to seize the regional legal service opportunities, but also to enhance the internationalization of the brand. However, at the same time, institutional compliance, talent strategy, and service positioning must be the cornerstones, rather than simply copying the domestic business model.

*References from: Singapore Bar Association, SingaporeNUSLaw School,SMU,SUSS,ACRA,GoBusiness,MOM,ICA, Lianhe Zaobao, synthesized news reports collated, reproduced must indicate the source, infringement and deletion of the contact.


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