Background and Legal Basis
In January 2026, the Federal Government of Somalia formally adopted the Regulations on Legal Services Companies in Somalia, issued by the Office of the Prime Minister and approved by the Council of Ministers. The regulation was prepared by the Ministry of Justice and Constitutional Affairs and published in the Official Gazette, thereby acquiring binding legal force. Its adoption marks a significant regulatory development in the governance of the legal profession in Somalia, particularly by introducing a distinct framework for law firms as corporate entities, separate from the traditional regulation of individual advocates.
The Regulation is grounded in earlier legislation governing the legal profession, notably the Advocates Act (Law No. 85 of 1975) and its amendment of 1986 (Law No. 3 of 1986). However, while those statutes primarily focus on individual advocates, the 2026 Regulation extends regulatory attention to institutionalized legal practice, reflecting the growing presence of law firms operating as organized business entities.
In terms of scope, the Regulation applies to all legal services companies operating within Somalia that are registered as corporate entities and engage in activities related to the provision of legal services. This includes both local law firms and foreign legal services companies seeking to operate in Somalia.
The authority of the Prime Minister to issue regulations as an office raises a constitutional question when assessed against the Provisional Constitution of Somalia (2012). Article 100, which sets out the responsibilities and powers of the Prime Minister, does not expressly confer rule-making or regulation-issuing authority. By contrast, Article 99 clearly vests the power to approve and implement administrative regulations in the Council of Ministers, acting collectively and in accordance with the law.
While the Prime Minister may play a coordinating or proposing role within the executive, the attribution of a regulation directly to the Prime Minister’s office without clear indication of collective approval by the Council of Ministers risks blurring constitutionally defined competences. Such practice may raise concerns of procedural irregularity and ultra vires action unless it can be demonstrated that the regulation was duly adopted through the Council of Ministers in compliance with Article 99.
Registration and Legal Personality
A central feature of the Regulation is the requirement that no legal services company may lawfully operate without prior registration with the Ministry of Justice and Constitutional Affairs. Registration authority is vested in the Ministry’s Department of Judicial Affairs, and applicants must submit specified documentation, including proof of advocate licensing, firm ownership details, and office location.
Upon registration, a legal services company acquires separate legal personality, enabling it to sue and be sued, enter into contracts, and operate as a recognized legal entity. Importantly, while firms may appoint non-lawyer managers for administrative or technical functions, such individuals are expressly prohibited from providing legal services or exercising professional legal authority. This distinction preserves the professional monopoly of licensed advocates over legal practice.
Transitional Arrangements and Publication
The Regulation addresses pre-existing law firms through transitional provisions. All legal services companies operating prior to the Regulation’s entry into force are required to regularize their status by registering within sixty (60) days. Failure to comply renders continued operation unlawful and exposes the firm to disciplinary sanctions. This transitional mechanism seeks to balance continuity of legal services with the need for regulatory compliance.
In addition, the Ministry is required to publish an official list of registered legal services companies within ninety days of the Regulation’s commencement. Only firms appearing on this official list may lawfully use their names and branding in courts and before government institutions. This publication requirement enhances transparency and provides a public reference point for verifying authorized law firms.
Duration, Renewal, and Oversight
Registration under the Regulation is valid for one year, after which firms must apply for renewal within thirty days of expiry. Renewal is not automatic and is contingent upon continued compliance with registration requirements. This annual renewal mechanism introduces ongoing administrative oversight over law firms, reinforcing regulatory supervision beyond initial market entry.
The Regulation also grants the Ministry broad inspection and monitoring powers to verify compliance. Where violations occur, a graduated system of disciplinary measures applies, ranging from written warnings to suspension or closure of the firm, depending on the severity of the breach. These enforcement provisions underscore the Regulation’s shift toward a more formalized and administrative model of professional oversight.
Registration Fees and Regulatory Impact
The Regulation introduces explicit registration fees: USD 300 for local legal services companies and USD 1,000 for foreign firms. These fees, combined with annual renewal obligations, create firm-level financial responsibilities that operate alongside existing fees imposed on individual advocates under separate court and professional fee regulations.
From a regulatory perspective, this dual structure results in parallel obligations: individual advocates remain subject to professional licensing and practicing certificate fees, while law firms as corporate entities are subject to registration, renewal, and inspection requirements. This represents a notable expansion of regulatory reach within Somalia’s legal sector.
In comparative regional terms, Somalia’s approach departs from the dominant East African model, where regulation typically focuses on individual advocates through bar associations, with limited firm-level regulation. The Somali framework therefore introduces a more interventionist regulatory model, the long-term effects of which will depend on implementation capacity, consistency of enforcement, and engagement with the legal profession.
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