Singapore Legal Sector Onset of Liberalization, Says Singapore Company Incorporation Specialists
Adapting to changes as outcome of globalization is becoming imperative to sectors across the board and Singapore's legal sector stands as no exception. On 6 December 2007 the Government declared an in principle agreement to the recommendations of the review committee, headed by Justice V K Rajah, Law Minister S Jayakumar, to propose measures to enhance Singapore's position as an international center for the provision of legal services
Tweet-- Adapting to changes as outcome of globalization is becoming imperative to sectors across the board and Singapore’s legal sector stands as no exception. On 6 December 2007 the Government declared an in principle agreement to the recommendations of the review committee, headed by Justice V K Rajah, Law Minister S Jayakumar, to propose measures to enhance Singapore's position as an international center for the provision of legal services.
The recommendations covered three main thrusts — liberalization, law education and disciplinary proceedings for errant lawyers. Liberalization of the sector emerges as the most significant recommendation of the committee in propelling forward the city state’s ambition to become the legal hub of the region.
In Singapore, Foreign Law Firms (FLF) and foreign lawyers are regulated by the Legal Profession Act 2000 and associated rules. The present system is highly protective of the local law firms and has many prohibitions for foreign law firms. Foreign firm may only provide legal services in foreign law and not Singapore law. Lawyers, even if admitted locally, are not allowed to practice Singapore law while employed by a foreign law firm. Currently, foreign law firms in Singapore can only engage in offshore "high-end" work in the areas of intellectual property, international arbitration, finance and banking, and maritime laws.
Three key elements of the proposed liberalization are
Open international arbitration Foreign Law Firms may carry out in international commercial arbitration involving Singapore law to include work prior to a notice of arbitration being issued- whereby they can be involved in a case right from the stage when arbitration is contemplated- in the vetting and drafting of Singapore law agreements incorporating arbitration clauses, and advising parties on their legal rights and liabilities in such agreements both before and after the dispute is referred to arbitration. FLFs will practise Singapore law in the expanded areas of arbitration work through Singapore-qualified lawyers employed by the firm.
EJLV An enhanced Joint Legal Venture Scheme where the Foreign Law Firms will be able to directly hire Singapore-qualified lawyers to advice on Singapore law and share up to 49 per cent of the profits with its Singaporean partner firm in the permitted areas of cooperation.
QFLF Under a new Qualifying Foreign Law Firm Scheme, up to five licenses will be granted to foreign law firms to set up shop here. The Government will call for proposals and evaluate them based on criteria such as the firms' commitment to maintain a large outfit. However work pertaining to litigation, and domestic areas of law such as criminal law, retail conveyancing, family law, and administrative law will still be reserved as domains for Local Firms.
Currently (FLFs) may participate in international commercial arbitration, including cases involving Singapore law, once a notice of arbitration is issued. Under the present Joint Law Venture (JLV) scheme, FLFs can partner a Singapore law firm and use the lawyers on its payroll for work involving the Republic's laws. Essentially, joint ventures are alliances between foreign and domestic firms that allow the former to refer work in areas in which they are prevented from advising by local Bar regulations. It also allows firms to field joint teams on cross-border finance deals. QFLFs will enable FLFs to practice Singapore Law independently without any local alliance.
Since its establishment in 1991, the Singapore International Arbitration Centre (SIAC) has made real strides in establishing itself as the arbitration hub in the region. Companies in Southeast Asia are increasingly looking to Singapore as the venue for the settlement of their disputes, whether through the Courts or through alternative dispute resolution. As of July 2007 there are 71 FLFs in Singapore, however, the majority does not have significant Singapore-focused practices and use the island as a hub for regional work, especially finance and energy related work.
Commenting on the developments Ms. Ragini Dhanvantray CEO of Rikvin Consultancy says, “Singpaore economy relies heavily on international trade and it has aspirations to evolve into a regional finance center, and has fairly arrived at it as well. In order to sustain its status it is essential that it adapts to changes and remains relevant to investors and enterprises. A sound, liberal and updated legal sector is of paramount importance to sustain economic success of the city state. Such adaptive approach of the government, would send clear signal to the international business community about the resilience as well as relevance of the Singapore legal system.. Such cutting edge legal sector would accelerate the growth of banking, financial and other key economic sectors and also support Singapore's aim to be a vibrant global city and an attractive venue for legal talent.”
Rikvin consultancy provides highly professional company incorporation services, both in attractive standard packages as well as customized services. Online incorporation being a hallmark service, other services of Rikvin include
§ Offshore Incorporation
§ Singapore Immigration -EntrePass / Employment Pass
§ GST Registration
§ Accounting Services
§ Tax Planning & Consulting
§ Business Plan Drafting
For more information, please visit http://www.rikvin.com
Notes to Editor
Rikvin consultancy started in 1995 is an incorporation specialist specializing in company incorporation, registration and administration processing for all business types and sizes in Singapore and throughout the world. Rikvin facilitates foreign entrepreneurs’ immigration into Singapore by assisting in obtaining Entrepass for themselves and their families and employment pass for their employees. Rikvin also provides a full range of accounting services for companies who require a complete and properly constructed set of financial statements for their business purposes. For further information visit http: www.rikvin.com