Setting Up Private Practice in the NWT

Here are the steps you need to follow if you want to set up a practice in the Northwest Territories.

ACTIVE MEMBERSHIP

If you are practicing in the Northwest Territories, you are required to be licensed as an active member of the Law Society of the Northwest Territories.

To apply for membership, click here.

INSURANCE COVERAGE

The Law Society of the Northwest Territories requires all practicing lawyers to carry professional liability for errors and omissions

You must be insured through the Law Society of the Northwest Territories:

• If you are an Active Resident Member.
• If you are an Active Non-Resident Member who is not licensed to practice in another jurisdiction.
• If you operate a trust account in the Northwest Territories.

Certain lawyers are exempt from insurance. To read more about professional liability insurance in the Northwest Territories, click here.

REQUIREMENTS FOR LAW FIRMS AND SOLE PRACTITIONERS

Law Firms and Sole Practitioners in the Northwest Territories are required to designate and maintain a Responsible Lawyer (Rule 114).

Apply for a responsible lawyer designation through your member portal under “Entities”.

TRUST ACCOUNTS

Law Firms and Sole Practitioners in the Northwest Territories are required to obtain authorization from the Law Society to maintain a trust account (Rule 114).

Before you open a trust account:

• You must be approved by the Law Society
• Obtain a letter of direction from the Law Society to remit interest earned on the account to the Law Foundation of the Northwest Territories.
• Inform the Law Society in writing of the location and account number of your trust account.

Within four months of obtaining approval of opening a trust account, all new firms and sole practitioners must, along with your accountant, submit a Law Firm Start Up Report.

Approvals must be obtained prior to commencing your law practice.

We encourage you to contact the Law Society to discuss these requirements, well in advance of the date you intend to commencing private practice.

SUCCESSION AND DISASTER RECOVERY PLANS

Every lawyer in private practice is required to have a Succession Plan and a Disaster Recovery Plan.  Information on creating plans can be found here.

Here are other issues you should be aware of as you start your practice:

• Do you need a business license?
• Do you need to register with the WSCC?
• Have you registered with Revenue Canada?
• Do you need a drop box at the Yellowknife Courthouse?

The Law Society of Alberta has created a Start Up Kit for those considering opening their own office.  While some of the information is specific to Alberta lawyers, it is a useful resource for those considering setting up their own office.  You can access it here.