What are the different forms of legal practices?
Attorneys, Referral Advocates and Trust Account Advocates, who are admitted as such in the High Court of South Africa, and enrolled by the Practice Legal Council, in terms of the Legal Practice act 28 of 2014 (“LPA”), are collectively referred to as “legal practitioners”. The LPA came into force on 1 November 2018.
Section 34 of the LPA prescribes the forms of legal practices (law firms) which the different type of legal practitioners may operate. The forms of legal practices for the different types of legal practitioners are as follows:
An Attorneys may only practise –
- As a sole proprietor (for own account);
- In partnership, association or fee-sharing arrangement with other Attorney/s ;
- As part of a personal liability company (“Inc” company);
- As part of a law clinic (non-profit organisation) established in terms of Section 34(8) of the LPA;
- As part of Legal Aid South Africa; or
- As an attorney in the full-time employment of the State as a state attorney or the South African Human Rights Commission.
An Attorney may not practise as such as part of a private company (“Pty Ltd” company) without the consent of the Legal Practice Council. The main difference between a “Pty Ltd” company and an “Inc” company is that present and past directors of an “Inc” company can be held responsible for the debts of the company, while the owner of a “Pty Ltd” company is considered separate from the company. A director of a private company could therefore “escape” debt of the company in certain circumstances.
A Referral Advocate or a Trust Account Advocate may only practise –
- As a sole proprietor (for own account);
- As part of a law clinic (non-profit organisation) established in terms of Section 34(8) of the LPA;
- As part of Legal Aid South Africa; or
- As an advocate in the full-time employment of the State as a state attorney or the South African Human Rights Commission.
Referral Advocates may only receive instructions (“briefs”) from Attorneys and members of justice centres. Trust Account Advocates must be in possession of a Fidelity Fund Certificate (same as an Attorney) and may, in addition, receive instructions directly from the public.
A Legal Consultant, who is not practising as an Attorney, Referral Advocate or Trust Account Advocate, may provide legal services to the public in the business form of a sole proprietorship, partnership or private company (“Pty Ltd” company). Legal Consultants are often legal experts who started their legal careers at corporate companies or universities and were not admitted and enrolled as legal practitioners in terms of the LPA. However, Legal Consultants are also often “retired” non-practising Attorneys.
Sometimes legal experts operate parallel legal practices at the same time, ie they practise law as a legal practitioner (ie Attorney, Referral Advocate or Trust Account Advocate) in a legal practice form prescribed by the LPA above, as well as a Legal Consultant or director of a private company (“Pty Ltd” company) providing legal services or multi-disciplinary professional services. Sometimes the registered address or offices for such parallel different type of legal businesses are the same. Legal practitioners should take care not to cause confusion or misrepresentations to clients in this regard.
As the professional liabilities towards clients may differ, depending on the form of legal practice and whether the legal expert is providing legal services as legal practitioner or Legal Consultant, it is very important that the legal expert always clarify his/her capacity and applicable form of legal practice when taking instructions from clients to perform legal services.
We hope this information is helpful and invite you to connect with us on for more information about top lawyers. Our online lawyer directory conveniently indicates the lawyer types and who operates as a Practising Attorney, Referral Advocate, Trust Account Advocate or a Legal Consultant.
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