See also – Guide to starting a practice | Law Society of Scotland. For assistance in law firm acquisition, mergers or disposals please visit Jonathan Fagan Business Brokers, specialists for all UK law & accountancy firm M&A, with over 20 years’ experience. The guide below is for non-lawyers and non-Scottish solicitors looking to break into the Scottish legal market. Guide written by Mehak Gupta, graduate trainee adviser at Jonathan Fagan Business Brokers.
Current Status
As of January 2025, applications to set up as a Licensed Provider (LP) in Scotland are temporarily paused due to ongoing changes in legislation.
Basic Requirements – Ownership Structure
- Licensed providers must be at least 51% owned by lawyers or other professionals.
- Non-lawyers cannot own 100% of the firm.
- One solicitor must be employed as head of legal.
Process for Non-Scottish Solicitors
Initial Qualification
- Pass the Qualified Lawyers Assessment.
- Obtain practicing certificate from Law Society of Scotland.
Practice Requirements
- Hold unrestricted practicing certificate for at least 3 years.
- Submit practice unit application to Law Society of Scotland.
- Complete Anti-Money laundering registration.
- Arrange Professional Indemnity Insurance (PII).
Required Forms
Essential Documentation
- Practice Unit Information 1 (PUI 1) https://www.lawscot.org.uk/members/rules-and-guidance/rules-and-guidance/section-d/rule-d4/forms-and-fees/d4-practice-unit-information-forms/
- Incidental Financial Business 1 (IFB 1), if applicable. https://www.lawscot.org.uk/members/rules-and-guidance/rules-and-guidance/section-c/rule-c2/forms-and-fees/c2-incidental-financial-business-forms/
- Incorporate Practice 1 (INC 1), if setting up as LLP or limited company. https://www.lawscot.org.uk/members/rules-and-guidance/rules-and-guidance/section-d/rule-d5/forms-and-fees/d5-incorporated-practice-form/
- Sample letterhead for approval.
Additional Setup Steps
Business Requirements (Licensed legal services providers)
- Set up bank accounts.
- Arrange PII coverage.
- Register for anti-money laundering supervision.
- Establish client protection fund.
References
Legal Services Regulation – the need for reform. Retrieved from Lawscot: https://www.lawscot.org.uk/research-and-policy/legal-services-review/
Legal services: alternative business structures. Retrieved from Gov.scot: https://www.gov.scot/policies/access-to-justice/alternative-business-structures/
Licensed legal services providers. Retrieved from Law Scot: https://www.lawscot.org.uk/members/membership-and-fees/licensed-legal-services-providers/
Non-lawyer law firm ownership: ABSs to be introduced in Scotland. Retrieved from Armstrong Watson: https://www.armstrongwatson.co.uk/news/2023/09/non-lawyer-law-firm-ownership-abss-be-introduced-scotland
Scotland set for non-lawyers to jointly own firms from 2022. Retrieved from Law Gazette : https://www.lawgazette.co.uk/news/scotland-set-for-non-lawyers-to-jointly-own-firms-from-2022/5111011.article
Jonathan Fagan is MD of Ten-Percent.co.uk Limited and TP Recruitment Limited, a set of websites involved in a range of recruitment work. Jonathan has been running small businesses for over 20 years and has a number of interests and investments in companies as diverse as transcription, legal recruitment and a bit of marketing. He is an author of a number of guides and books, together with a children’s novel. In his spare time he enjoys playing golf, cricket, coaching girls’ football, operating a parent taxi, lots of running and paddleboarding on Bala Lake and the River Dee. He is a strong believer in a good work-life balance and regular blogs on making money vs enjoying life. Jonathan’s website is https://www.jonathanfagan.co.uk
