In November 2014, the Bar Standards Board (BSB) announced that its application to regulate entities had been approved by the Legal Standards Board.
Following the approval, the BSB will be able to regulate organisations owned and managed by barristers and other lawyers.
The authorisation application process for those entities owned and managed by authorised individuals has been open since 5th January 2015, though authorisation decisions will only be made from April 2015.
Due to the advantages surrounding incorporation – such as tax benefits and limited liability status that keeps private assets separate from a company and its potential debts – many businesses have chosen to operate as a limited company.
Barristers and those affected will also be able to maintain the traditional chambers structure by including the limited company as a member of chambers.
However, there are disadvantages to incorporation – increased costs, specific existing circumstances being affected, increased regulation and tighter deadlines are just some of the major factors that should be considered beforehand.
Tax advantages will appeal to some barristers at a certain income level, but these advantages may be temporary and will be subject to changes in Government policies.
Barristers intending to go through the process of incorporation have been urged to seek further guidance to ensure that the changeover is efficiently managed.