If you are thinking of setting up your own law practice, there are a few considerations that you

need to bear in mind. The question here is whether it is going to be in the form a sole
proprietorship or even partnership kind of structure?

Bar Council Rulings 1.02 (I) also states that all references to a “firm” or a “law firm” mean
a firm of Advocates and Solicitors whether a partnership or a sole proprietorship. Bar Council
Rulings 7.06 (1) states that any individual or individuals who wish(es) to set up a legal firm
either as a sole proprietor or partnership shall inform the Bar Council in writing of his/her
(their) intention to do so. This notice in writing must be executed by the intending sole
proprietor or all the intending partners.

Moreover, Sole proprietorship is mentioned in the Bar Council Rulings 1.02 (o) as all
references to a “sole proprietorship” mean a law firm which is or was a sole proprietorship
at the relevant time and all references to a “sole proprietor” mean the sole proprietor of such
sole proprietorship at the relevant time. Meanwhile Partnerships is stated as per Rulings 1.02
(n) as all references to a “partnership” mean a law firm which is or was a partnership at the
relevant time and all references to a “partner” mean a partner of such partnership at the
relevant time. Next, the comparison of Sole Proprietorship and Partnership are as follows:

1. Sole Proprietorship
 Consist of one person who is the owner/operator of the firm.
 Known as sole trader or sole proprietor.
 Minimum members is only one individual.
 Decision making duration is quick.
 Proprietor is solely responsible for the profits & losses.
 Finance scope for raising capital is limited.
 Liability borne by the proprietor only.
 Duration to manage the firm is uncertain.

2. Partnership
 Consist of two or more persons who is the operator of the firm.
 Individually known as partners and collectively known as firm.
 Minimum members is two individuals.
 Decision making duration is longer as it requires the partner’s agreement.
  Profits & losses are shared mutually within the agreed ratio.
 Finance scope for raising capital is comparatively high.
 Liability is shared by the partners.
 Duration to manage the firm depends on the desire and capacity of the partners.

Overall, it is with no doubt that we can choose to establish a legal firm either by way of sole
proprietorship or even partnership as per Bar Council Rulings 1.02 (I). However, based on the
comparisons given above, it is best to establish a partnership structured legal firm as there are
many benefits to it with regards to operating the firm if one of the partners is not around,
decision making is made with two different views which would even produce a better outcome.
In addition, liability are mutually shared among the two and lastly the finance scope to raise a
capital is also not limited as per sole proprietorship.