What is law firm and why do lawyers establish law office? Usually, the word chambers and law firm are used interchangeably to describe the office of a legal practitioner. However, the word, law firm is a better description because chambers have different connotations. It could mean the office of a judge. As a matter of fact, chambers refer to the office of a judge. Not every person is entitled to open a law firm. Only legal practitioners are entitled to open and operate a law firm. Section 24 LPA defined a legal practitioner to mean a person entitled in accordance with the provisions of the Act to practice as a barrister or as a barrister and solicitor generally or for the purpose of any particular office or proceedings.

The following are the reasons for the establishment of law firms:

  • Establishment of law firm in accordance with or to fulfil the provisions of Rule 22 RPC which provide that instructions from client must not be taken at client's house or place of business except in exceptional circumstances. Thus, it must be in a law office.

  • Out of necessity on account of lack of paid employment.

  • Establishment of law firms because doing so is a realization of an ambition. When it is said that lawyers are proud even though it could be a cliché, in reality, it is not far from the truth. Some would establish law firm because of self-esteem.

  • Some establish law firm because of the desire to be independent and be their own boss.

  • Also, it could be because of opportunity of earning higher professional fees that is, profitability of the profession.

PERSONAL QUALITIES OF A SUCCESSFUL LEGAL PRACTITIONER
If any legal practitioner who intends to establish law office and also want to be successful, the following qualities is sine qua non:

  • Honesty and integrity: This quality cannot be over emphasized. The legal profession is central in the administration of justice and the society look up to the court and lawyers, thus legal practitioner should be honest and have integrity. These qualities are adequately enshrined in the Rules of Professional Conduct. The honesty and integrity of a lawyer will bring more clients to him and keep him in business. ADEWUNMI v. PLASTEX (NIG) Ltd.
  • Hard work and organisation
  • Determination and commitment.

In addition to the above are the following success recipes:

  • Knowledge: A legal practitioner must have knowledge of the law both substantive and procedural aspect of the law.

  • Skill: It is not enough to have knowledge of the law, application of the law to factual situation which is skill is important. Thus, knowledge of the law and application goes hand in hand.

CAPITAL – FINANCING A LAW FIRM
A legal practitioner intending to establish a law firm needs capital. There are two types of capital needed in establishing a law firm.

These are:

  • START-UP CAPITAL: This is the capital needed for commencing a business. Example is funds needed to provide facilities like premises, furniture, vehicle, equipment and machines.

  • WORKING CAPITAL: Capital in this like includes funds needed for recurrent expenditures- running of the day to day activities of a business. E.g funds for salaries and wages, utility bills and cost of stationeries. There are various means in which a lawyer can source for the capital needed for establishing and operating the law firm.

The methods through which capital can be raised to finance the law office include:

  • personal savings,

  • contributions from family and friends,

  • loans or overdraft from banks. (borrowing)