A number of Bermuda's law firms are set to become limited liability companies under new legislation which allows lawyers to provide services in the same way as other professionals and service providers and enables non-Bermudians to become shareholders or directors in the firm.

The Bermuda Bar Act 1974 was amended to add sections 16A through 16I, while the Bermuda Bar (Professional Companies) Rules 2009 and the Bermuda Bar (Insurance) Rules 2009 were enacted and came into effect for professional companies in October 2009.

Paul Lacy, executive director of the Bermuda Bar Association, said that the new legislation, which is voluntary for law firms, has already been adopted by Conyers Dill & Pearman Ltd., Wakefield Quin Ltd. and Limestone Law Ltd., who have all been granted a certificate of recognition.

Prior to the passage of these changes through law, barristers and law firms were not permitted to offer their services through a limited liability company, he said.

"A professional company must comply with the Companies Act, including the 60:40 rule requiring a majority 60 percent ownership by Bermudians; and in addition, all of the shareholders and directors must be members of the Bermuda Bar Association, and maintain their practising certificate.

"The main advantage is being able to structure your business as a limited liability company."