Starting Right

Overview

With the right guidance, setting up a law firm need not be a daunting affair, in fact, it can be a rather enjoyable process. This overview will guide you through your setup process and highlight the key considerations you need to think about.

A. Business Planning – Decide where you Want to Go

This is probably the most important. Take the time to do the necessary business planning. Key questions to ask yourself : What do you do better than the next lawyer? Should you be a General Practitioner or market yourself as a specialist provide specialist? Who is your target client?

Click here for Sample Business/Marketing Plan for your law firm

B. Determine the Road Map for Getting There

1. Marketing Plan
2. Technology Plan
3. Premises
4. HR
5. Business Structure
6. Budget

C. Statutory Compliance and Registration

Some of the statutory requirements for setting up a new law firm include:

1. Choosing A Business Name
2. Consider what form of business organization you wish to work with: Sole Proprietorship, Partnership LLP, LLC
3. Register your intended law practice with the Law Society of Singapore
4. Register your business with ACRA
5. Familiarise yourself with the second signatory and approved bookkeeper requirements under the Solicitors Accounts Rules.

For a more detailed checklist, refer to the Compliance Guide in the Startup Kit.

D. Costs of Setting Up

Setting up fees are considerably lower than in the past as bits and bytes replace hard copy libraries. Budget for the following start-up costs:

1. Law Society Registration
2. Registration of business entity
3. Professional Liability Insurance
4. Rental Deposits,
5. Renovation, Furniture
6. Hardware Costs: Personal Computer, Printer, Scanner
7. Subscriptions to EFS, Lawnet, IPOS, STARS, Justice Online
8. Software: Microsoft Office, Anti Virus, Legal Accounting Software
9. Broadband and Telephone Setup
10. Marketing: Logo, namecards, website, printing, signboard
11. Optional items: PABX, Door Access System, Multi-Purpose Copiers, Disbursement Recovery Systems

Grants and Financing:

It is important to preserve cash at the startup. Cash preservation strategies include:

• Managing your Expenditures: Prepare detailed budgets and resist the temptation to spend on plush premises and carpets unless they are absolutely critical to your branding and marketing.
• Government Grants: Check if there are government grants that you can use to subsidize your start up costs, eg: IDA-SIP Grant for websites, GST Grant and LETAS Grant from Spring Singapore
• Financing : It may make sense to finance your startup costs via a hire purchase or finance lease. If possible, try to secure a package that does not penalise you for early repayments.

E. Operational Tips For Easier Operations

Here are some things you can do to ensure that you don’t get unnecessarily bogged down by administrative matters.

1. Choose a conveniently located and responsive bank to open an Office and Client Account with.
2. Engage an outsourced bookkeeper who is approved by the Law Society.
3. Consider outsourcing the following functions to reliable, experienced and responsive free lancers: despatch, filing, completions.
4. Operating Budget: Budgeting is important. Make time to crunch out your budgeted monthly expenses, and to monitor the same.