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How to Establish a Law Firm


Oct 11, 2020
How to Establish a Law Firm

For those of you who are licensed advocates and have taken the oath of a private advocate, you will definitely want to establish a legal service such as a law firm (law firm). The establishment of a law firm can be individual (personal law firm) or from several advocates (partners / associates). Besides that, it can also take shelter in a legal entity office, such as an international law firm.

The question is how to set up a law firm, especially in the form of a legal entity? It should be noted that legal services in Indonesia are related to civil law, so that the establishment of a law firm also follows the requirements of the Civil Code. Meanwhile, the legal basis itself is based on Chapter III Part 2 of the Indonesian Commercial Code (KUHD) which discusses Firm and Limited Liability Companies.

Matters to Pay Attention to Law Firm

Before discussing how or steps to set up legal services in the form of a law firm, it’s good to know what a firm is. According to the KUHD, Firma is a civil partnership established to run a company under a common name. This definition concludes a number of things that need to be considered regarding the establishment of a firm, including a law firm, namely:

  1. Civil Partnership, namely an association between two or more people. This means that a firm is a business entity founded by two or more people.
  2. Running the Company, namely a firm formed to carry out business activities. With regard to law firms, their business activities are around legal services.
  3. Joint Name, means a firm established under a joint name. For example, if the founders are Broto and Risa, then the name of the firm is “Broto and Risa’s Guild.” However, as according to Catherine L, Managing Director of EasyHelps, choosing the name of the firm does not have to use the name of the founder because there is a possibility that the founder may resign. Therefore, the name of the firm must be considered seriously because it affects the client.
  4. Prepare a Deed of Establishment

The first step is to make a deed of establishment in a notary. Previously, of course, you and your team must have determined the name of the firm. In accordance with Article 26 of the KUHD, there are five things that need to be considered in making a firm’s deed of establishment, namely:
• The names, first names, occupations, and exact residences of the company companies.
• The firm’s statement whether it is a public company or is it limited to a special company eye.
• Appointment of companies that are not allowed to sign on behalf of the firm.
• When will the company take effect and when it ends.
• Determine the rights of third parties against the company.

Registration of Deed of Establishment of Firm at the Ministry of Law and Human Rights

After there is a deed of establishment from a notary public, then the deed is registered with the Ministry of Law and Human Rights. This is in accordance with the latest regulation Permenkumham No.17 of 2018 concerning Registration of Limited Partnerships, Firm Fellowships, and Civil Associations.

Registering the deed of establishment at the Ministry of Law and Human Rights itself there are several steps that must be obeyed, namely as follows.
• Submission of Firm Name made by the founder by authorizing a notary.
• Filling in the registration format by completing supporting documents such as a statement from the applicant for firm registration and a corporate statement regarding the accuracy of owner information.

Making NPWP

Taxpayer Identification Number (NPWP) is one of the mandatory requirements for the establishment of firms including law firms. NPWP processing can be done at the tax office where the association firm is established.

That is the information about how to establish a law firm. If you look at it, the steps for establishing a legal service in the form of a firm seem simple. However, the stages at each point still take time in the process. Hopefully this article can help provide an overview of the establishment of a law firm in accordance with legislation.