There are several business models that you can adopt when setting up. You will need to consider a number of factors in order to determine which model suits you, including:
- The level of risk you are prepared to take
- How quickly you wish to set up
- Costs.
We recommend that you take professional advice from an accountant and a corporate solicitor before deciding what model is appropriate for you.
| Form | Purpose | Fee |
|---|---|---|
| Practice Unit Information 1 (PUI 1) | Giving information regarding regulatory roles and contact details. Rule D4. | |
| Incidental Financial Business 1 (IFB 1) | An application may be appropriate to give you incidental financial business licence cover, which includes a consumer credit licence. Rule C2. | No fee |
| Incorporated Practice 1 (INC 1), including Guarantee Fund undertaking | Requesting recognition of an LLP or a limited company practice by the Law Society of Scotland. There are very specific requirements in terms of Rule D5. | £400 one-off fee |
| Multi-National Practice 1 (MNP 1) | Requesting recognition of a multi-national practice, detailing the Scottish and English managers/director/shareholders in the business and other legally qualified personnel. Rule D8. | £400 one-off fee |
| Registered Foreign Lawyer 1 (RFL1) | Requesting recognition as a registered foreign lawyer, this needs to be accompanied with a certificate of good standing from the home regulator. Rule D7. | £150 per manager per year |
We require seven working days of receipt of all documentation to authorise a traditional practice.
Please submit the following:
- PUI 1
- Payment (if applicable) of:
- Client Protection Fund fee
- Accounts fee
- AML fee per manager – if payment for the practice year has not been made already been made
- Sample letterhead*
- IFB 1, if required (see below)
- Your practice unit’s Master Policy professional indemnity insurance schedule as issued by Lockton
- Anti-money laundering information
*This can apply to letterheads, business cards and email footers. There are no specific requirements as to what a letterhead should contain – although it would be useful to have your name, the name of the firm and contact details. We are just keen to make sure that details are accurate and compliant with our rules before you start trading.
There are statutory requirements in relation to publication of company and LLP names: at registered offices, on stationery, invoices, emails and websites (e.g. The Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015 and Companies Act 2006).
We require all documentation one month prior to the proposed start date.
Please submit the following:
- PUI 1
- INC1
- Memorandum and articles of association (M&A) (required) – (Rule D5.4.1 provides specific requirements for M&A as standard M&A are not compliant)
- Copy of the certificate of incorporation of the company
- Signed Client Protection Fund undertakings from each manager
- £400 fee
- Payment of the Client Protection Fund fee for each manager (if payment for the year has not already been made)
- Sample letterhead*
- IFB1 form, if required
- Once an application has been granted, we require either your endorsement to your indemnity insurance schedule if you are converting an existing practice or your schedule of insurance as issued by Lockton
- Anti-money laundering information
See Applying for recognition as an Incorporated Practice and Rule D5.3 for more information.
*This can apply to letterheads, business cards and email footers. There are no specific requirements as to what a letterhead should contain – although it would be useful to have your name, the name of the firm and contact details. We are just keen to make sure that details are accurate and compliant with our rules before you start trading.
There are statutory requirements in relation to publication of company and LLP names: at registered offices, on stationery, invoices, emails and websites (e.g. The Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015 and Companies Act 2006).
We require all documentation one month prior to the proposed start date.
Please submit the following:
- PUI 1
- INC1
- LLP agreement (optional)
- Copy of the certificate of incorporation of the company
- Signed Client Protection Fund undertakings from each manager
- £400 fee
- Payment of the Client Protection Fund fee for each manager (if payment for the year has not already been made)
- Sample letterhead*
- IFB1, if required
- Once an application has been granted, we require either your endorsement to your indemnity insurance schedule if you are converting an existing practice or your schedule of insurance as issued by Lockton
- Anti-money laundering information
See Applying for recognition as an Incorporated Practice and Rule D5.3 for more information
*This can apply to letterheads, business cards and email footers. There are no specific requirements as to what a letterhead should contain – although it would be useful to have your name, the name of the firm and contact details. We are just keen to make sure that details are accurate and compliant with our rules before you start trading.
There are statutory requirements in relation to publication of company and LLP names: at registered offices, on stationery, invoices, emails and websites (e.g. The Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015 and Companies Act 2006).
We require all documentation three months prior to the proposed commencement date.
Please submit the following:
- PUI1
- MNP1
- RFL1 form for each non-Scottish manager
- Annual payment of the Client Protection Fund fee for each Scottish manager (if payment for the year has not already been made). £400 fee for MNP registration in addition to
- £400 if incorporated
- Sample letterhead*
- IFB1, if required
- The practice unit’s indemnity insurance schedule as issued by Lockton or evidence of insurance if you use multinational options b or c right.
- If the MNP is to be a limited company or LLP, or if an existing limited company or LLP currently operating outside Scotland is to be used, that entity will require to be recognised as an incorporated practice – in that case, we will require sight of all the additional documentation described in the incorporated practices sections above
See Rule D8.1.3
See Rule B7.1.6 Evidence of insurance.
a) Multi-national practice (recognised by the Law Society of Scotland only)
There is a requirement that at least one Scottish manager and a manager qualified in the other jurisdiction are appointed in the business. Becoming a Scottish MNP (with approval from us) only entitles you to have lawyers from another jurisdiction as managers (as registered foreign lawyers registered in Scotland) in the Scottish business. The practice unit is only entitled to do Scottish work, including Scottish reserved area work, and non-reserved work in the other jurisdiction.
b) Multi-national practice (recognised by the Solicitors Regulation Authority (SRA) only)
Example: an English business becoming an English MNP (with approval from the SRA) only entitles you to have lawyers from another jurisdiction as managers (as registered foreign lawyers, or RFLs, registered in England and Wales) in the English business. The practice unit is only entitled to do English work and Scottish non-reserved work. Scottish solicitor managers in such a practice would register as RFLs with the SRA.
c) Multi-national practice (recognised by us and SRA)
Example: if a single business registers as an MNP with both the SRA and us, not only are solicitors from both jurisdictions entitled to be managers of the business (all managers also being registered as RFLs in one jurisdiction or another, depending on where they originally qualified), the business is also entitled to do work in both jurisdictions whether reserved area or not.
See Rule D8 – Multi-national practices.
*This can apply to letterheads, business cards and email footers. There are no specific requirements as to what a letterhead should contain – although it would be useful to have your name, the name of the firm and contact details. We are just keen to make sure that details are accurate and compliant with our rules before you start trading.
There are statutory requirements in relation to publication of company and LLP names: at registered offices, on stationery, invoices, emails and websites (e.g. The Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015 and Companies Act 2006).
