Legal Services Board
Incorporated legal practices
What is an ILP?
An incorporated legal practice (ILP) is a corporation that is permitted under the Legal Profession Act 2004 (Vic) (“the Act”) to engage in legal practice.
Subject to Part 2.7 of the Act, any corporation is eligible to be an ILP. However, a corporation cannot provide legal services if expressly prohibited by any law under which it is incorporated or its affairs are regulated. “Corporation” means a company within the meaning of the Corporations Act 2001 (Cth) or other body corporate as prescribed by the regulations.
An ILP may also provide services other than legal services, except those that are expressly prohibited by the Act or the regulations.
An ILP is not itself required to hold an Australian practising certificate.
Notification of intention to engage in legal practice
Before it starts to engage in legal practice in Victoria, a corporation must give written notice to the Board in the approved form. A corporation may not hold itself out as entitled to engage in legal practice in Victoria before it has given the appropriate notification.
The Act imposes heavy penalties upon corporations that fail to comply with these requirements.
An ILP must also give the Board written notice in the approved form it if ceases to engage in legal practice.
- Download the Notice of intention to start providing legal services – corporation form (80KB PDF)
- Download the Notice of termination of provision of legal services – corporation form (76KB PDF)
Legal practitioner directors
An ILP must have at least one legal practitioner director who holds an Australian practising certificate authorising legal practice as a principal.
If an ILP ceases to have any legal practitioner directors, the ILP must notify the Board as soon as possible. The legal practitioner director must be replaced within seven days or the ILP must cease to provide legal services. It is an offence under the Act for an incorporated legal practice to provide legal services in Victoria during any period it is default of the director requirements.
Legal practitioner directors also maintain the usual professional obligations of an Australian legal practitioner, including as imposed under legal profession rules.
The Act also imposes specific obligations upon legal practitioner directors, including that, for the purposes of the Act, each legal practitioner director is responsible for the management of the legal services provided in Victoria by the ILP.
Legal practitioner directors should be familiar with their obligations under Part 2.7 of the Act.
Appropriate management systems
Each legal practitioner director of an ILP is required by the Act to ensure that there are appropriate management systems implemented and maintained to enable the provision of legal services by the ILP:
- in accordance with the professional obligations of Australian legal practitioners, and other obligations imposed by the Act, regulations or legal profession rules; and
- so that those obligations of Australian legal practitioners who are officers or employees of the practice are not affected by other officers or employees.
Audit of ILPs
The Board may conduct an audit of:
- the compliance of an ILP (and of its officers and employees) with the requirements of Part 2.7 of the Act, the regulations and/or any applicable legal profession rules; and
- the management of the provision of legal services by the ILP (including the supervision of officers and employees providing the services).
Download the ILP Self-Assessment Audit document (259KB PDF)
Disqualified persons
The Act sets out circumstances in which a person is considered “a disqualified person”. A disqualified person is prohibited from being an officer or employee of an ILP or a related body corporate. Disqualified persons must not be engaged or paid in respect of the provision of legal services by an ILP.
Professional indemnity insurance
The Act requires each ILP to obtain professional indemnity insurance with the Legal Practitioners’ Liability Committee (Vic) before engaging in legal practice in Victoria. An ILP must also maintain that insurance at all times whilst engaging in legal practice in this jurisdiction
Law practices, including those that maintain professional indemnity insurance in another Australian jurisdiction (in accordance with corresponding laws) may apply for an exemption from this requirement.
For further information see Professional indemnity insurance.
Trust accounts
An ILP that receives trust money must maintain a general trust account in Victoria in accordance with the Act, its regulations and any applicable legal profession rules.
For further information see Trust money and Trust accounts.
Conflicts of interest
The interests of the ILP or any related body corporate are taken to be those of a practitioner in questions of conflict of interest.
Incorporating or structuring your law practice
The Board does not provide legal or professional advice in relation to incorporating or structuring your law practice.