What a legal consultancy is
A legal consultancy provides ongoing legal services to companies and self-employed professionals. The work splits into three main areas: corporate, company formation, contracts and bylaws; tax, taxes, filings and planning; and labour, payroll, employment contracts and dismissals.
The difference from a litigation-focused firm is the approach: the consultancy works day to day so problems never reach court.
Typical services of a consultancy
Some of these services are also provided by agencies. The difference is the judgement: the consultancy tells you what to do, the agency does the paperwork.
Key points
- Company formation and registration procedures
- Contracts with clients, suppliers and employees
- Taxes: periodic filings, VAT, corporate tax
- Payroll and employee registrations
- International expansion advice: subsidiaries, branches, provision of services
- Unpaid invoice claims and debts
Consultancy, agency and lawyer: how they differ
An agency handles administrative paperwork: filing forms, registering documents, registrations and cancellations. It executes what has already been decided and does not usually give legal judgement.
A consultancy adds the advice layer: corporate structure, contract review, tax planning. It is preventive and proactive.
A lawyer steps in when there is a dispute: court defence, litigation negotiation, appeals. Some consultancies employ bar-certified lawyers and cover both phases.
When it pays to hire one
The starting point is the first contract, the first employee or the first complex filing. Before that, a freelancer can manage with an agency alone. From then on, the cost of a mistake, a fine or a badly drafted contract exceeds the consultancy fee.
When going international, local judgement is gold: setting up a company, hiring staff or invoicing in another country has its own rules that a generalist consultancy does not always master. The choice then is a consultancy with a local network or an international service that coordinates professionals in each country.
How to choose one
Ask for specialisation: a generalist consultancy is fine for the basics, but if your business is international look for one with experience in that kind of operation. Ask about the tax and corporate side, not just labour, and how they charge: a fixed monthly fee or per service.
Also ask about communication: who responds, in which language and how quickly. A consultancy that does not answer when the problem is small will not answer when it is big.
