State Council, Administration of Representative Offices of Foreign Law Firms in China Regulations

Promulgated: December 22 2001
Effective: January 1 2002
Applicability: These Regulations are applicable to foreign law firms that set up representative offices in China to conduct legal services (Article 2). For law firms in separate tariff zones of China, establishment of representative offices in the mainland shall be subject to administrative procedures to be formulated separately by the judicial administrative department of the State Council (Article 34). Resident offices of foreign law firms that started trial operations in China, or representatives who began trial practices with the approval of the judicial administrative department of the State Council before the implementation of these Regulations, shall reapply and go through the examination and approval procedure under these Regulations within 90 days of effectiveness of the Regulations (Article 35).

Main contents: The Regulations provide that representative offices of foreign law firms and their representatives shall comply with professional ethics and practice disciplines of China and shall not harm China's national security and public interest (Article 3). Foreign law firms are not allowed to provide legal services in China in the name of consulting companies or otherwise (Article 6). To set up a representative office in China, a foreign law firm shall satisfy the conditions that it has not been penalized for violation of professional ethics and practice disciplines in its home country, that its proposed representatives are similarly clean in the profession and that the firm has practical needs to set up a representative office in China to provide legal services (Article 7). Applications for setting up representative offices shall be submitted to a judicial administrative department of the province, autonomous region or municipality directly under the central government where the proposed representative office is to be located (Article 8). After passing the examination, the application will then be forwarded to the judicial administrative department of the State Council for verification and approval. Successful applicants will receive practice licences and practice certificates with which they can register their representative offices and their representatives with the relevant judicial administrative department (Articles 9 & 10). Registered representative offices and their representatives shall confine their activities to: (1) advising on the laws of the countries where their lawyers are permitted to practise law and on international treaties and practices; (2) handling, when instructed by clients or Chinese law firms, legal affairs of the countries where their lawyers are permitted to practise law; (3) instructing, on behalf of their foreign clients, Chinese law firms to deal with Chinese legal affairs; (4) entering into contracts to maintain long-term relations with Chinese law firms for legal affairs; and (5) advising on the impact of China's legal environment (Article 15). Representative offices shall not employ Chinese registered lawyers (Article 16). Legal fees charged by representative offices must be settled within China (Article 20). Specific penalties are stipulated for violation of the Regulations (Part Five).
Related legislation: PRC, Lawyers Law (Amended), Oct 28 2007, CLP 2007 No.10 p83