How to Start a Corporate Law Firm in England and Wales

Before setting up your firm, decide which services you intend to offer and which types of clients you want to serve.

Corporate and commercial law covers a broad range of legal work so as a new law practice, you may choose to specialise in one area or offer several related services.

For example, your practice might focus on:

• Company formation and corporate structuring: Advising business owners on company structures, ownership and governance.
• Mergers and acquisitions: Supporting buyers and sellers through business acquisitions, disposals and due diligence.
• Commercial contracts: Drafting, reviewing and negotiating contracts with customers, suppliers and other businesses.
• Shareholder agreements: Helping business owners establish clear arrangements for ownership, decision-making and resolving disputes.
• Corporate restructuring: Advising businesses on reorganisations and changes to their corporate structure.
• Commercial legal advice: Providing ongoing legal support to businesses as they grow and encounter new challenges.
• Business sales and investments: Advising on transactions, investment arrangements and related documentation.

You do not necessarily need to offer every service from the outset. A focused practice can make it easier to communicate your expertise, identify your ideal clients and build a recognisable position in the market.

Consider whether you want to work with start-ups, owner-managed businesses, established companies, investors or other professional firms. Each audience may have different expectations, budgets and reasons for seeking legal advice.

Your chosen specialism will influence your business plan, pricing, staffing, insurance discussions and marketing strategy.

A clear understanding of your market can help you avoid launching a firm without a realistic plan for generating work.

Start by researching the businesses you intend to serve. Consider their size, location, industry, likely legal requirements and how they currently find legal advisers.

For example, a corporate solicitor targeting owner-managed businesses may need a different approach from a firm specialising in mergers and acquisitions for larger organisations. Your research should consider:

• Demand: Which businesses need the services you intend to provide, and how frequently might they need them?
• Competition: Which firms already serve your target market, and how do they position their services?
• Geography: Will you serve a particular town or region, work nationally, or operate primarily online?
• Pricing: How do competing firms structure their fees, and what pricing model makes sense for your intended clients?
• Referral opportunities: Could accountants, corporate finance advisers, consultants and other professional contacts refer suitable work?
• Differentiation: What will give a prospective client a reason to instruct your firm?

A new law practice does not necessarily need to compete directly with the largest corporate law practices. You may be able to build a stronger position by serving a defined group of businesses with a particular set of needs.

For example, you might focus on commercial contracts for growing businesses, company acquisitions for owner-managed companies or ongoing legal support for small and medium-sized enterprises.

Your findings should inform your business plan and provide a starting point for your marketing strategy.

A business plan helps you turn the idea of starting a law firm into a workable commercial proposition. It should explain what your firm will do, who it will serve, how it will operate and how it will generate enough revenue to cover its costs.

Your plan should cover the following areas.

List the legal services you intend to offer and consider how you will charge for them. Depending on the work, this might include hourly rates, fixed fees, retainers or other appropriate fee arrangements.

Your pricing should reflect the complexity of the work, the time and resources required, your target clients and the firm’s financial needs.

Prepare an estimate of your initial setup costs and ongoing expenditure. These may include:

• Professional indemnity insurance.
• Regulatory and compliance support.
• Company formation and other business administration.
• Website design, branding and business email.
• Computers, telephony and other IT equipment.
• Legal software and secure document management.
• Office or remote-working costs.
• Accounting, banking and payment processing.
• Marketing, advertising and client acquisition.

Not every firm will need the same facilities or technology. A practice operating remotely may have a different cost base from one with dedicated office premises and employees.

Estimate how much money you will need to establish the firm and cover its expenses while the practice develops. Your forecast should account for the possibility that income may be irregular, invoices may take time to be paid and some clients may take longer than expected to instruct you.

Consider how much working capital you need, how you will fund the business and what level of revenue is required to cover its costs.

Your business plan should explain how you intend to win work, rather than assuming that clients will automatically follow you into the new practice.

You might build on professional relationships, develop referral partnerships, invest in search engine optimisation (SEO; now including GEO), run Google Ads or publish useful content for your target clients.

A realistic business plan gives you a basis for making decisions and monitoring progress after launch.

You will need to consider how your new practice should be structured and which regulatory authorisation, if any, it requires.

The appropriate arrangement will depend on your circumstances, ownership, management and the legal services you intend to provide.

Possible structures and regulatory routes may include:

• A recognised sole practice.
• A recognised body.
• A licensed body, including an alternative business structure (ABS), where appropriate.
• A partnership or limited liability partnership (LLP), depending on the proposed arrangement and regulatory requirements.
• Another business structure that is suitable for the services and regulatory framework involved.

These options are not interchangeable. For example, incorporating a company at Companies House does not, by itself, authorise that company to carry out regulated legal activities.

The Solicitors Regulation Authority (SRA) explains which legal services businesses require authorisation and the requirements for different types of authorised firms. The position can depend on the services provided, the people involved and the proposed business structure.

Before committing to a structure, obtain advice on the regulatory, ownership, governance, tax and financial implications. Choosing the right arrangement early can help you avoid unnecessary changes later.

You can find further information in the SRA’s guidance on firm authorisation.

SRA's guidance on firm authorisation

If your new firm will provide regulated legal services, you must establish which authorisation requirements apply before commencing those activities.

For solicitors setting up a new practice in England and Wales, this may involve applying to the SRA for authorisation of the firm, as well as obtaining any necessary approvals for individuals involved in its management or ownership.

The requirements depend on the proposed business model and the work the firm will undertake. You should not assume that the rules for one type of practice or business structure automatically apply to another.

Areas to consider include:

• The eligibility of the proposed firm and its managers or owners (including years of PQE).
• The relevant firm authorisation application.
• Required approvals for role holders.
• Compliance officer arrangements, where applicable.
• Professional indemnity insurance.
• Financial management and client money requirements, where relevant.
• Anti-money laundering obligations and any necessary registration or approval.
• Policies, procedures and systems needed to operate compliantly.

Allow time to understand the requirements and prepare the supporting information. An application may involve several connected work streams, so it is sensible to plan the regulatory process alongside your business setup.

The SRA provides official information through its new firm authorisation guidance. You should check the current rules and obtain specialist advice for your circumstances rather than relying solely on a general checklist.

Intellistart works with specialist regulatory compliance consultants who can help prospective law firm owners understand and prepare for the application process. We can introduce you to appropriate support where required.

Professional indemnity insurance is an important part of planning a new legal practice.

The cover you need will depend on your proposed firm, its regulatory status, the work it will undertake and the applicable insurance requirements.

Corporate and commercial work can involve complex transactions, substantial financial interests and detailed contractual obligations. Discuss your proposed practice and anticipated activities with an experienced legal-sector insurance broker so that the cover is appropriate to your circumstances.

Consider insurance early in the setup process. The availability, terms and cost of cover may influence your financial forecast and the timing of your launch.

You should also establish what other insurance may be appropriate for your business, taking into account your premises, staff, equipment and operating arrangements.

Intellistart works with specialist insurance brokers who can assist with obtaining quotations for new law firms. The final cover, terms and premium will depend on the insurer’s assessment and your circumstances.

Once you have a clearer picture of your structure, regulatory requirements and finances, you can plan the practical arrangements needed to run the firm.

Your setup will depend on how you intend to work, the services you offer and the needs of your clients.

Choose a professional name that suits your intended market and check its availability and any relevant regulatory requirements before committing to it.

How to Choose a Domain name and Hosting for a New Website

You will also need a visual identity that can be used consistently across your website, documents, business email and other communications, in suitable formats (SVG, WebP, PNG).

A clear and professional brand helps potential clients recognise your firm and understand the type of work you undertake.

Your website along with your Google Business Profile will often be one of the first places a prospective client visits when researching your firm.

For a corporate and commercial practice, it should explain your services, identify the types of businesses you help and make it easy for prospective clients to contact you.

Consider including:

• A clear overview of your corporate and commercial services.
• Information about your experience and relevant expertise.
• Details of the clients or industries you serve.
• Professional biographies and contact information.
• A clear enquiry or consultation process.
• Appropriate privacy information and regulatory disclosures.
• Search engine optimisation foundations to help potential clients find the firm.

Use a professional business email address associated with your domain rather than relying on a personal email account.

You may need computers, secure communications, document management, practice management software, accounting systems and other technology.

Choose systems that suit the size and nature of your practice, and consider security, confidentiality, data protection, access controls and business continuity.

You should also plan how you will manage enquiries, schedule consultations and follow up with prospective clients. These processes matter from the first day of trading, not just once the firm becomes busier.

You do not need to buy every available tool at launch. Focus on the systems needed to operate professionally, protect client information and deliver your services effectively.

Establishing your firm is only the beginning. You also need a practical plan for generating enquiries and turning suitable prospects into clients.

For a corporate or commercial law firm, client acquisition may involve several complementary approaches.

Professional relationships can be valuable sources of work. Depending on your target market, you might develop connections with accountants, tax advisers, corporate finance specialists, business consultants and other professional service providers.

Be clear about the work you handle, the clients you are best suited to help and how you can add value to the relationship.

Aside from confirming that your law practice exists, your website should help potential clients understand what you do and take the next step.

Create dedicated service pages for your principal areas of work. Explain the problems you help solve, the types of businesses you serve and how a prospective client can speak to you.

Make contact details easy to find and ensure the website works well on mobile devices. Consider how enquiries will be received, monitored and answered.

SEO can help your firm appear when businesses search online for relevant legal services.

Your website content should reflect the language your prospective clients use and answer the questions they are likely to ask. Depending on your practice, this could include searches related to commercial contracts, shareholder agreements, business acquisitions or ongoing legal support for companies.

Useful, specific content can help demonstrate your expertise and support your visibility in search engines. SEO is a longer-term investment, however, and rankings or enquiry volumes cannot be guaranteed.

Google Ads can provide another route to reaching businesses actively searching for legal services.

Campaigns should be planned around your target clients, service areas, budget and commercial objectives. Relevant keywords, carefully written adverts and useful landing pages all matter.

It is also important to measure enquiries and, where possible, understand which enquiries turn into suitable instructions. The aim is not just to generate website traffic; it is to attract relevant prospective clients and use your marketing budget effectively.

Hiring an experienced PPC advertising agency can be the difference between generating traffic that doesn’t convert and enquiries that become paying clients.

Decide how you will assess the effectiveness of your marketing. Useful measures may include enquiries received, qualified leads, consultations booked, new instructions, cost per lead and the revenue generated by marketing activity.

Tracking these outcomes helps you make informed decisions about where to invest your time and budget as the firm develops.

Before opening your firm, work through a launch checklist to ensure that the essential arrangements are in place.

Your checklist may include:

• Confirming the proposed business structure and required authorisations.
• Arranging the relevant insurance.
• Establishing compliance policies and procedures.
• Setting up business banking and financial processes.
• Preparing your website, email and telephone systems.
• Establishing secure IT and document management.
• Preparing client engagement documents and onboarding processes.
• Planning how enquiries will be received and followed up.
• Activating your initial marketing and referral activity.
• Reviewing your cash flow forecast and operating budget.

The exact sequence will depend on your circumstances and the requirements that apply to your practice. Do not begin providing regulated services until the necessary authorisation and other applicable requirements are satisfied.

Once you begin trading, review your progress regularly. Compare actual expenditure and income with your forecasts, assess the quality of new enquiries and refine your marketing based on what you learn.

If you are considering launching a corporate or commercial law firm in England and Wales, we can help you explore the support you may need.

Arrange a free initial 30-minute discussion with our startup law firm specialist to talk through your plans, intended services and likely next steps.

Learn more about our Start a Law Firm service

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