Page 6 - Law Society of Hong Kong MPMC Manual v8 - With checklists (1 March 2018)

Practice Management Course | Unit 1
Practice Structures

UNIT 1: Practice Structures

Introduction
This unit examines the various ways in which a Hong Kong law practice can be structured. The
different structures meet different practitioner goals and needs, and selecting the appropriate
structure is a critical first step towards building your practice.

Objectives
At the end of this unit, you will be able to:

• Compare and contrast the different legal practice structures in Hong Kong.
• Evaluate the capacity of each structure with regard to matters such as work-type,
clients and staffing, and the practicing goals and needs of principals.
• Analyse how the various components of each practice structure should best be set up
and implemented.

1. Three structuring models are available for establishing a Hong Kong legal practice:

(1) Sole practice
(2) General partnership
(3) Limited liability partnership (LLP)

2. We discuss each structuring model in turn and then examine the factors to consider
when selecting a practice structure or deciding whether to join a particular practice.

Sole practice
3. To establish a sole practice, a solicitor must hold an unconditional practising
certificate, as defined in Rule 1A of the Solicitors’ Practice Rules. Cap 159Y
Practising Certificate (Special Conditions) Rules, Appendix I, lists seven types of
conditions (listed below) that may be applied to practising certificates. Should any
of conditions i – v apply to a practising certificate, it is not possible to establish a
sole practice. Should only conditions vi and vii apply, the solicitor may only practise
on his own account with the approval of the Council.

i. The solicitor shall complete a period of practice (not exceeding 24 months)
as specified by the Council under the supervision of a solicitor holding an
unconditional practising certificate.
ii. The solicitor may only practise in an employment that has been approved
by the Council.
iii. The solicitor may only practise in a partnership that has been approved by
the Council.
iv. The solicitor may only practise on his own account with the approval of the
Council.
v. The solicitor shall not sign cheques on a client account.
vi. The solicitor shall accumulate such CPD accreditation points or undertake
and complete one or more courses of the Continuing Professional
Development Scheme as specified by the Council.
vii. The solicitor shall undertake additional academic or training courses or
examinations specified by the Council.

© The Law Society of Hong Kong (2018) Page 2