FTZ law firms to offer cross-border service

A pilot scheme set to be introduced this month will allow both domestic and foreign law firms operating in Shanghai's free trade zone to provide cross-border legal services.

"This is the boldest liberalization of the legal services industry in China, and is available only in the Shanghai FTZ," Wang Xie, deputy director of the Shanghai Judicial Bureau, said yesterday.

In the past, companies were required to employ both a Chinese and foreign law firm to conduct such business as foreign lawyers are prohibited from directly participating in China's legal affairs.

Under the new scheme, however, law firms from different countries and regions, including China, will be allowed to second personnel to one other so that each can provide a comprehensive legal service.

In the case of foreign firms, the collaboration must include a China-licensed legal consultant from a registered Chinese law firm.

Foreign and domestic firms will also be allowed to establish formal joint ventures — as long as at least one is based in the FTZ — and the processing of applications for such ventures will be accelerated, Wang said.

Also, the processing time for the establishment of new law firms, branches or representative offices in the free trade zone will be shortened to 10 days from 30, the judicial bureau said.

Full details are expected to be released before the end of the year, it said.