Supreme Court of Puerto Rico Authorizes Non-Attorney Ownership in Law Firms

July 2025 | Client Alert

On June 17, 2025, the Supreme Court of Puerto Rico (the “Supreme Court”) approved new Rules of Professional Conduct of Puerto Rico (“Rules of Professional Conduct”), which are scheduled to take effect on January 1, 2026.Among the most noteworthy changes is the adoption of Rule 5.4(b), which will authorize non-attorneys to hold ownership interests in law firms, provided certain conditions are met.

REQUIREMENTS UNDER RULE 5.4(b)

A non-attorney may hold an ownership interest in a law firm only if the following conditions are met:

1. The law firm must commit to providing pro bono legal services to indigent individuals.
2. Non-attorney owners must ensure that the firm is solely operated by a Puerto Rico-licensed attorney, who must: (1) represent the non-attorney owner in the exercise of all voting rights and other matters regarding to the legal office, (2) ensure compliance with the Rules of Professional Conduct, (3) notify the Supreme Court once an investment from a non-attorney has been received, and (4) submit on January 15 th of each year an annual sworn statement to the Supreme Court Clerk detailing the attorney headcount, date and amount of the investments made by the non-attorney owner and the revenues received by the non-attorney for the previous calendar year.
3. Non-attorney owners nor their agents may not practice law.(iv) Non-attorney owners may only contribute money in exchange for ownership interest, not services (including but not limited to marketing services).(v) Non-attorney owners may not interfere with the attorneys’ professional judgment or the attorney-client relationships.(vi) Client information must be protected in accordance with the confidentiality provisions established in theRules of Professional Conduct.
4. The agreement between the firm and the non-attorney must comply with the attorney’s fees provisions of the Rules of Professional Conduct.(viii) Clients must be informed of any non-attorney ownership interest.(ix) Non-attorney ownership may not exceed 49% of the firm’s ownership interests.