Shanghai FTZ to liberalise legal services industry in China

SHANGHAI – The Shanghai Daily has reported the launch of a pilot scheme this month that will allow both domestic and foreign law firms operating in Shanghai’s Free Trade Zone (FTZ) to provide cross-border legal services. Representatives from the Shanghai Judicial Bureau were quoted as calling it the “boldest liberalisation of the legal services industry in China”, saying for now it is exclusively available in the FTZ.

Previously, restrictions against foreign lawyers directly participating in China’s legal affairs forced companies to employ both Chinese and foreign law firms; under the pilot scheme, “law firms from different countries and regions, including China, will be allowed to second personnel to one [another] so that each can provide a comprehensive legal service”, the report said.

 For foreign firms, the collaboration must include at least one China-licensed legal consultant from a domestically registered law firm.

Foreign and domestic firms will be granted permission to establish formal JVs (on the condition that at least one is registered in the FTZ). Processing time for JVs and new law firms will also be streamlined and accelerated. More details on this project will be released before the end of the year, says the judicial bureau. www.webershandwick.cn (ATI).