Law firms in Indonesia are a form of partnership that is not a legal entity, regulated under Articles 16–35 of the Indonesian Commercial Code (KUHD). Each partner bears unlimited liability, extending to personal assets. Therefore, understanding the requirements is crucial before establishing a firm.
Basic Requirements for Establishment
To establish a law firm, several key requirements must be met:
- A minimum of two founders who are Indonesian citizens, at least 17 years old, and hold a valid advocate license from PERADI.
- Notarial deed of establishment, which must include the firm’s name, address, business purpose, ownership structure, and profit-sharing arrangement.
- Firm name must be unique, not resemble any registered firm, and be approved by all partners.
- Capital contribution has no minimum requirement, but each partner must contribute funds, assets, or expertise.
Read also: Why Is a Law Firm’s NPWP Often Rejected?
Required Documents
Important documents that must be prepared include:
- Copies of ID cards (KTP) and NPWP of all founders.
- Advocate license (SIPA) from PERADI.
- Passport photo of the responsible person.
- Domicile certificate of the company.
- Copy of the latest Land and Building Tax (PBB) receipt or office lease contract.
Read also: SKDP for Law Firms: Is It Still Required?
Law Firm Establishment Process
The steps to establish a law firm include:
- Preparing documents and consulting with a notary.
- Drafting the deed of establishment and signing before a notary.
- Registering the business entity via SABU at the Ministry of Law and Human Rights, until obtaining a Certificate of Registration (SKT).
- Applying for operational permits through OSS to obtain the Business Identification Number (NIB), as well as notifying the District Court and the professional advocate organization.
- Opening a bank account in the name of the firm.
Read also: Law Firm Address Requirements in Indonesia: Complete Guide by vOffice
Important Notes for Advocates
Although a firm can be used, some legal experts argue that a civil partnership (maatschap) is more suitable for the legal profession as it emphasizes personal responsibility rather than commercial orientation. However, in practice, law firms remain a common choice due to their structured establishment process and legal certainty.
Challenges in Establishing a Law Firm
- The risk of unlimited liability for all partners.
- A relatively complex administrative process, including notarial deed, SABU registration, and OSS licensing.
- Specific obligations for advocates, such as notification to the District Court and the relevant professional organization.
Practical Solution: Use Professional Services
For advocates who want to focus on legal practice without being burdened by administrative tasks, the best solution is to use experienced consulting services.
vOffice offers Law Firm Establishment Services with a free virtual office bonus that is legally valid. With this service, you not only get assistance in the legalization process but also an instant representative office address in a strategic location. This provides a professional image while ensuring cost efficiency for your new law firm.
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FAQ about Law Firm Establishment
Is a law firm a legal entity?
No. A law firm is not a legal entity, and partners are personally liable.
Must all founders be advocates?
Yes, all founders of a law firm must hold a valid advocate license issued by PERADI.
Is there a minimum capital requirement?
There is no minimum capital requirement, but each partner must make a contribution.
How long does it take to establish a law firm?
On average, 2–4 weeks depending on document completeness and administrative process.
