Starting a law firm in the UK is one of the most consequential decisions a solicitor makes. It offers professional autonomy, the ability to build something to your own values, and — if the economics work — materially better returns than employment. It also involves navigating an authorisation process that is detailed, time-consuming, and unforgiving of gaps.

The good news is that the SRA’s authorisation process is transparent. The requirements are published, the timelines are known (broadly), and firms that prepare thoroughly and submit complete applications sail through. The ones that struggle are those that treat authorisation as a formality rather than a process requiring careful preparation.

This guide covers every material step from the decision to launch to trading as an authorised firm, structured as a working checklist.

Stage 1: Before You Apply — Foundations

Define Your Practice Structure

The first decision is the legal structure of the firm itself. The SRA authorises several entity types: sole practice, partnership, limited liability partnership (LLP), limited company (Ltd), and community interest company (CIC). Each has different tax, liability, and regulatory implications.

Most new firms choose either sole practice (one qualified solicitor, lower overhead, simpler structure) or a limited company (personal liability protection, more flexible ownership, easier to bring in investors or partners later). An LLP is often chosen where two or more solicitors are setting up together and want the flexibility of partnership governance with limited liability protection.

You should take legal and tax advice on the choice of structure before applying. The choice is not irrevocable — firms can convert — but restructuring after authorisation involves additional SRA notifications and possible fees.

Designate the Compliance Officers

Every SRA-authorised firm must have:

A COLP (Compliance Officer for Legal Practice) — a manager or employee who is qualified to supervise. The COLP is responsible for ensuring the firm complies with the SRA Standards and Regulations and taking steps to address non-compliance.
A COFA (Compliance Officer for Finance and Administration) — responsible for compliance with the SRA Accounts Rules and reporting any material breaches.

In a sole practice, the sole practitioner typically holds both roles. In a multi-person firm, the roles can be split. Both must be named in the SRA application, both must confirm their willingness to take on the roles, and both must be individuals of whom the SRA approves.

The COLP and COFA roles carry personal regulatory responsibility. Holding them without understanding the obligations is a significant risk. Before the firm launches, the designated individuals should complete the SRA’s own guidance on COLP and COFA responsibilities and consider whether specialist training is warranted.

Stage 2: The SRA Authorisation Application

Using mySRA

The SRA authorisation application is submitted through the mySRA online portal. The application requires:

The firm’s proposed name (checked against the SRA’s naming rules — no misleading descriptions, no title that implies a size or specialism you do not have)
The structure and ownership details (all managers and their SRA IDs, beneficial ownership if a company)
Details of the COLP and COFA
Practice area declarations
The firm’s business plan and financial projections (required for risk assessment)
Confirmation of professional indemnity insurance arrangements (see below)
Confirmation of compliance with the SRA’s suitability requirements

SRA Timelines

The SRA publishes expected processing timelines but these are not guarantees. As of 2025, straightforward applications typically take 6-10 weeks from submission to decision. Complex applications — particularly where principals have regulatory history, where the ownership structure involves multiple corporate entities, or where the proposed practice area raises conflict questions — can take longer.

Do not hand in your notice or commit to office space on the assumption that authorisation will arrive by a specific date. Build a realistic buffer — at least 12 weeks — between application submission and your planned opening date.

Common Application Failures

The SRA rejects or returns a significant proportion of applications due to incomplete information, inadequate business plans, or concerns about the suitability of managers. The most common issues are:

Business plan that lacks sufficient detail on how the firm will be financially viable
Financial projections that are not credible or are not accompanied by supporting assumptions
PII cover that is not confirmed or that has terms inconsistent with the SRA minimum terms
Beneficial ownership declarations that are incomplete or inconsistent with Companies House records
Failure to complete the Character and Suitability declaration for all managers

Stage 3: Professional Indemnity Insurance

The SRA Minimum Terms

Professional indemnity insurance (PII) is a regulatory requirement. The SRA’s Minimum Terms and Conditions (MTCs) set a floor: minimum cover of £2 million per claim for sole practitioners and firms with up to two partners/directors, and £3 million for larger firms. The MTCs specify what the policy must cover, the basis of cover (civil liability arising from the firm’s legal services), and the run-off period that must be available.

New firms often find PII the most challenging part of setup. Insurers are risk-averse about new firms with no claims history, no existing client base, and no trading record. Some areas of law — residential conveyancing, probate, and certain commercial property work — attract higher premiums because of historical claim rates.

The professional indemnity market for law firms is covered by insurers who specifically underwrite legal practices. The Law Society maintains a list of participating insurers. Approaching multiple insurers through a specialist broker, rather than seeking quotes individually, is standard practice and usually produces better results.

When to Approach Insurers

Approach PII insurers as soon as you have a clear picture of: the entity structure, the proposed practice areas, the projected fee income for the first year, the CVs of all principals, and whether any principals have prior claims history. Insurers underwrite the risk of the specific firm — the earlier you engage them, the more time you have to shop the market.

Do not assume that PII will be available at the cost you projected. The premium for a new solicitor setting up a conveyancing practice could easily be £10,000-£20,000 in year one. This must be in your financial model.

Stage 4: AML Registration and Compliance Framework

HMRC Registration

Law firms providing certain legal services (including conveyancing, trust and company work, and other specified services) must register with HMRC under the Money Laundering Regulations 2017. Registration must be completed before the firm provides those services, and HMRC charges a registration fee. The SRA also supervises law firms for AML compliance, but HMRC registration is a separate obligation for the specific services listed in the MLRs.

Firm-Wide AML Policies

Before the firm takes on its first client, it must have a compliant AML framework in place:

A written firm-wide risk assessment (the first of the MLRs’ requirements)
Written policies and procedures for client due diligence (standard, simplified, and enhanced)
A nominated money laundering reporting officer (MLRO) — typically the COLP in a small firm
Procedures for internal reporting of suspicion to the MLRO and external reporting to the National Crime Agency (SAR submission)
A training programme for all fee earners and relevant support staff

The SRA’s AML guidance and the Law Society’s AML practice notes are the essential references. The SRA has been increasing its AML supervision activity and has fined firms for inadequate firm-wide risk assessments and policy documentation.

Stage 5: Banking and Client Account

Opening a Client Account

The SRA Accounts Rules require that all client money be held in a designated client account at an approved bank. Opening a client account requires a bank that accepts law firm client accounts — not all high street banks do, and those that do often have lengthy onboarding processes for new firms.

Start the bank account application process as soon as you have SRA authorisation (most banks require evidence of authorisation). Common choices include Barclays, NatWest, and specialist legal banking providers. The bank will conduct its own KYC process on the firm and its principals.

The SRA Accounts Rules requirements are detailed: client money must be segregated from office money, interest must be accounted for on the basis of the firm’s written interest policy, a monthly reconciliation of the client account must be carried out and documented, and a qualified accountant must conduct an annual client account audit.

Stage 6: Technology and Infrastructure

Practice Management Software

Selecting practice management software before you open is more valuable than switching systems six months in. The core requirements are: matter management, time recording, billing (for both hourly and fixed-fee work), a client accounting module compliant with the SRA Accounts Rules, and a document management system.

Established platforms used by UK law firms include LEAP, Clio, Osprey, Tikit, and SOS Legal. Evaluate them against your specific practice area requirements, your expected matter volume, and your budget. Most offer cloud-based deployment, which eliminates the need for local server infrastructure and is standard for new practices.

Document Automation

Starting with document automation from day one — templates for client care letters, retainer agreements, standard correspondence, and matter-specific documents — builds the foundation for scalable practice. Every hour spent creating a well-drafted template is recovered across hundreds of future uses.

Cyber Security

The SRA and the ICO both impose requirements on law firms in relation to data security. Law firms are high-value targets for ransomware and phishing attacks. Before opening, establish: multi-factor authentication for all cloud services, encrypted storage for client documents, a data breach response procedure, and a cyber liability insurance policy (distinct from PII, which covers professional negligence rather than data breaches).

Stage 7: Regulatory Registrations and Memberships

Additional Registrations

Depending on your practice areas, you may need additional registrations:

ICO registration — required for any firm processing personal data. Annual fee, online registration at ico.org.uk.
HMRC MLR registration — as above, for applicable services.
Legal Aid Agency contract — if offering legally aided services, a separate application to the LAA for the relevant matter specification.
OISC — not applicable to solicitors (who are regulated by the SRA), but relevant if employing non-solicitor immigration advisers.
CQS accreditation — if offering residential conveyancing, effectively required for lender panel membership.

Law Society Membership

Practising certificate holders are members of the Law Society by default through SRA regulation. Law Society membership offers access to the Lawtech Register, the Find a Solicitor directory, practice guidance, and specialist accreditation schemes. Listing on Find a Solicitor is free and increases public visibility.

Stage 8: Client Care Framework

The SRA Client Care Requirements

Before taking on any client, you must have in place the client care framework required by the SRA Code of Conduct:

A written client care letter for every new matter, confirming the scope of work, who will do it, the costs and billing arrangement, the firm’s complaints procedure, and the right to the Legal Ombudsman
A written costs estimate or, where a fixed fee applies, confirmation of the fee
Evidence of your identity verification procedure under the MLRs

The SRA’s transparency rules (Principle 7) also require that your website contains: your firm’s complaints procedure, a link to the Legal Ombudsman, your SRA authorisation number, a link to the SRA website, and (for specified service areas) published pricing information.

Starting with the right technology stack is one of the highest-leverage decisions a new firm makes. Obiter is used by new practices from day one to handle incoming client emails, draft client care letters and acknowledgements, record billable time from calls, and keep AML files current — giving founders the capacity to grow their caseload without immediately hiring a legal secretary. At £49 per fee earner per month, it is one of the lowest-cost ways to run a lean, professional operation from the start.

Starting a Law Firm in the UK: The Complete Checklist 2025