Answered: Can Non-Lawyers own Law Firms in Canada? (2025)

Non-lawyer ownership of law firms is a complex subject in Canada. 

Like in the US, some Canadian jurisdictions are exploring ways to allow non-lawyers to have ownership stakes in law firms, aiming to improve access to legal services and introduce new investments.

This guide explores whether non-lawyers can own law firms in Canada, current restrictions, and emerging trends in legal services ownership.

Current Regulations on Non-Lawyer Ownership in Canada

Currently, Canadian law does not broadly allow non-lawyers to own law firms. 

Ownership and control are generally restricted to licensed lawyers to maintain professional integrity, client confidentiality, and independence in the legal profession.

• Professional Independence: The Canadian Bar Association (CBA) emphasizes that lawyer-owned firms ensure that legal services are provided without outside influence, keeping the lawyer’s duty to clients and the court paramount.
• Regulation by Provincial Law Societies: Law societies in each province set and enforce rules on law firm ownership. Regulators require that law firms be entirely lawyer-owned, ensuring control and decision-making remain within the legal profession.

While these rules currently restrict non-lawyer ownership, some provinces are considering reforms to open up alternative business structures (ABS) for legal services.

Variations in Canadian Provinces

Some provinces in Canada have begun discussions around allowing non-lawyer ownership or investment in law firms, but these discussions remain in early stages.

Ontario

Ontario has taken the lead in exploring alternative business structures (ABS) that would allow non-lawyers to have an ownership stake in law firms. 

In recent years, the Law Society of Ontario (LSO) has examined proposals to permit ABS as a way to increase access to legal services and support innovation. 

However, these changes have not yet been implemented on a wide scale.

British Columbia

The Law Society of British Columbia (LSBC) has considered ABS as well, and in 2021, it launched a pilot project to assess the potential impact of non-lawyer ownership. 

The LSBC is studying how ABS might help increase access to justice, particularly for underserved communities.

Other Provinces

Other provinces, including Alberta and Quebec, have not made significant moves toward non-lawyer ownership at this time. 

The traditional model of lawyer-only ownership remains the standard across most of Canada, though discussions about potential reforms are ongoing in several jurisdictions.

Pros & Cons of Non-Lawyer Ownership in Canada

The debate around non-lawyer ownership in Canada centers on potential benefits and risks. Here’s a breakdown of the main arguments:

Arguments For Non-Lawyer Ownership

1. Increased Access to Justice: Allowing non-lawyers to invest in law firms could make legal services more affordable and accessible, especially for lower-income individuals and small businesses.
2. Encourages Innovation: With outside investment, law firms may be able to adopt new technologies, streamline services, and provide innovative solutions to clients.
3. Broader Expertise: Non-lawyer ownership allows professionals from other fields, such as finance, technology, and management, to contribute their expertise to law firm operations.

Arguments Against Non-Lawyer Ownership

1. Conflict of Interest: Non-lawyer investors might prioritize profit over client interests, potentially compromising the quality and ethics of legal services.
2. Loss of Professional Independence: Non-lawyer ownership could undermine the independence of lawyers, creating pressures that conflict with their duty to clients and the courts.
3. Client Confidentiality Risks: Allowing non-lawyers access to client files and privileged information could pose risks to confidentiality and privacy.

While non-lawyer ownership remains controversial, pilot projects and policy studies are helping regulators better understand its implications.

FAQ

Is non-lawyer ownership of law firms allowed anywhere in Canada?

Currently, non-lawyer ownership is not broadly permitted, though Ontario and British Columbia are exploring alternative business structures (ABS) that may allow it in the future.

What are alternative business structures (ABS) in the legal industry?

ABS are business models that allow non-lawyers to own or invest in law firms. ABS can take various forms, from limited ownership stakes to multi-disciplinary practices, where professionals from different fields collaborate within the same firm.

Could non-lawyer ownership impact the cost of legal services?

Proponents argue that non-lawyer ownership could reduce costs by allowing firms to attract external capital and invest in efficiency-boosting technology. 

This could make legal services more affordable, especially for individuals and small businesses.

Why are some provinces hesitant to allow non-lawyer ownership?

Concerns around conflicts of interest, client confidentiality, and professional independence make some provinces cautious about permitting non-lawyer ownership. Regulators worry that outside influence could undermine the ethical obligations of law firms.