Official Reply of Ministry of Justice on Approving the Pilot Program of Exploring the Close Cooperation Mode and Mechanism of Chinese and Foreign Law Firms in China (Shanghai) Pilot Free Trade Zone
I. Guiding thought and principle
In accordance with the framework plan
for Shanghai free trade zone and the arrangement for enlarging the opening-up of
service industry, and by reference of the methods of mainland China opening up
to and making cooperation with legal service industry of Hong Kong and Macao,
make first try to explore the close cooperation mode and mechanism of Chinese
and foreign law firms in SFTZ to raise the level of mutual opening-up and
cooperation between the Chinese and foreign law profession, improve service and
competitive power of Chinese law profession, and build a legal service system
meeting the development demands of Shanghai free trade zone. The pilot program
shall follow the principles of being appropriate, progressive and under control;
the pilot measures shall be in line with the national conditions and the
development level of lawyer trade of China, try to form a working mechanism of
scientific, effective opening-up guidance, supervision and service to accumulate
experience in gradually expanding and deepening the opening-up and cooperation
of Chinese and foreign law profession.
II. Measures for pilot
program
1. Allow foreign law firms with representative offices in SFTZ
and Chinese law firms to make mutual assignment of lawyers as legal consultants
in a mode of cooperation. That is to say, Chinese law firms assign Chinese
practicing lawyers as Chinese legal consultants to representative offices of
foreign law firms, and foreign law firms assign foreign lawyers as foreign legal
consultants to Chinese law firms to conduct professional cooperation within
their respect practicing field and authority in a mode of division and
cooperation.
2. Allow foreign law firms and Chinese law firms to
practice joint operation in SFTZ. That is to say, foreign law firms that have
established representative offices in China and Chinese law firms, according to
the rights and obligations stipulated in agreements, practice joint operation in
SFTZ, respectively providing legal service for Chinese and foreign clients with
legal service related to foreign and Chinese applicable laws. In the term of
joint operation, both parties maintain their independent legal status, name and
financial affairs, each assuming independent civil liability.
3. Matters
about applicability to law firms in Hong Kong and Macao regions. Allow Hong Kong
and Macao law firms that have established representative offices in mainland to
participate in the abovementioned pilot program.
III. Supporting measures
for Pilot Program
1. Formulate relevant supportive policy measures to
guide and encourage foreign (Hong Kong and Macao) law firms to establish
branches in SFTZ by changing their domiciles (representative offices) or setting
up more representative offices, and encourage powerful domestic law firms to set
up branches in SFTZ.
2. Reduce time of administrative examination and
approval, after commencement of the pilot program, make open commitment to
reduce the time of preliminary examination of matters about foreign (Hong Kong
and Macao) law firms applying for establishment of representative offices and
assigning (altering) representatives in SFTZ from statutory three months to 30
working days, and the time of examination of domestic law firms applying for
establishing branches or assigning(altering) lawyers in SFTZ from statutory 30
working days to 10 working days.