[Direct answer]In the Beijing area, non-litigation legal services refer to all kinds of legal services that do not involve litigation or arbitration procedures. The core of it is to prevent disputes and safeguard transactions through advance arrangements. According to Article 28 of the Law of the People's Republic of China on Lawyers (amended in 2017), lawyers can accept commissions to provide non-litigation legal services. Common services include: long-term legal consultancy, contract drafting and review, company establishment and equity structure design, investment and financing and merger and acquisition due diligence, labor and personnel compliance, intellectual property application and layout, legal consultation and issuance of legal opinions, participation in business negotiations, debt collection letters, will witnessing and family wealth arrangement, etc. Both enterprises and individuals with non-litigation needs can entrust lawyers to provide services, and the fees are usually charged by the hour, by project, or by annual consultancy fees. For specific needs, please refer to the relevant materials.Intellectual property and corporate lawOrBusiness and contract disputes in enterprisesColumn.
1. Problem background and typical scenarios
This type of consultation is commonly seen in several situations: Firstly, start-up enterprises need to draft articles of association, shareholder agreements, and initial contract templates; Secondly, growing enterprises are involved in financing, equity incentives, and employment compliance, which can be referenced for guidance.Business and contract disputes in enterprises1. Columns; 2. The third is for enterprises to carry out trademark and patent layout and infringement early warning, which can be referred to for reference.Intellectual property and corporate law栏目;四是个人处置大宗房产、订立遗嘱、婚前财产安排等家事非诉事务,可参考Inheritance and division of estate1. Columns; 5. Foreign-related non-litigation matters such as cross-border investment and trade compliance. There are a large number of market entities in the Beijing area, and non-litigation needs cover the entire life cycle of a company, from its establishment and growth to its exit. The cost of making arrangements in advance is much lower than that of dealing with disputes afterwards.
II. Key points of contention
Although non-litigation services do not involve adversarial court trials, there are still many points of contention in practice. First, regarding the scope of services, there is often disagreement over whether "daily legal advice" in the consultant contract covers special transactions or litigation cases, and whether the fees should be calculated separately. Second, regarding the liability boundaries of legal opinions, lawyers should issue opinions based on the information provided by clients, and the consequences caused by inaccurate information must be agreed upon in advance. Third, regarding the depth and scope of due diligence investigations, incomplete disclosure or omissions in the investigation may lead to disputes over professional liability. Fourth, regarding the exemption arrangements for contract review, if the client insists on adopting the lawyer's risk warning, written confirmation can help define responsibilities. Fifth, regarding confidentiality obligations and conflicts of interest, lawyers serving both parties in a transaction must obtain the consent of all parties. Sixth, regarding the formal requirements of witnessing services, procedural defects in will witnessing and contract signing may affect the validity of the documents. Specifically, the applicable laws and regulations and the parties' agreements shall prevail.
III. Professional analysis by Henglue Law Firm
From the practical experience of lawyers handled by our firm, the value of non-litigation services lies in risk prevention and control in advance. For enterprises, common tasks include: establishing a contract template system and delegating approval authority at different levels to avoid business departments signing contracts without authorization; conducting legal due diligence in financing and mergers and acquisitions, identifying risk points such as equity holding on behalf of others, external guarantees, and litigation potentials, and designing transaction clauses; standardizing the onboarding, job transfer, and exit processes in labor and employment to reduce the risk of losing arbitration cases; and proactively planning trademark, patent, and trade secret protection in intellectual property. For individuals, common tasks include: drafting premarital or marital property agreements, wills, and inheritance arrangements, and reviewing large-scale sales and lease contracts. Common pitfalls include: treating advisory services as "only seeking help when in dispute," missing the best time for arrangements; disputing the scope of services and fees due to oral contracts without written contracts; and providing incomplete information leading to inaccurate opinions. When handling similar matters in Beijing, it is advisable to allow sufficient time for due diligence and negotiation for major transactions. For non-litigation matters involving construction projects and real estate, reference can be made to relevant precedents.Real estate transactions and construction projectsColumn.
IV. Practical suggestions and legal basis
Action suggestions: First, identify your own needs—whether they pertain to transactions, regulatory compliance, or dispute prevention—and select a lawyer who specializes in the corresponding field. Second, sign a written engagement contract that clearly lists the scope of services, deliverables, fees, and confidentiality clauses. Third, provide accurate and complete information according to the lawyer’s list and share relevant background information on major matters in a timely manner. Fourth, confirm and document the risks highlighted by the lawyer, keeping records for future reference. Fifth, for long-term advisory services, arrange regular compliance checkups to update systems and contracts dynamically. Legal basis: Article 28 of the Law of the People’s Republic of China on Lawyers (amended in 2017) explicitly states that lawyers may accept mandates from natural persons, legal entities, or other organizations to serve as legal advisors and provide non-litigious legal services. Article 469 of the Civil Code of the People’s Republic of China (effective January 1, 2021) regulates the form of contract formation, while Articles 490–492 address the establishment and validity of contracts, providing foundational rules for contract drafting and review. For labor compliance matters, refer to relevant guidelines.Work-related injuriesColumn.
5. Henglu Law Firm's Advice
Risk Warning: Firstly, it's crucial to act promptly in non-litigation arrangements. If remedial measures are taken after the transaction has been completed or a dispute has arisen, the cost will often increase exponentially; Secondly, verbal commitments and chat records cannot replace written contracts, and the scope of services must be formalized in writing; Thirdly, legal opinions are not guarantees, and their conclusions are based on the authenticity and completeness of the information; Fourthly, formal procedures are strictly required for notarized services such as wills and witnessing. It is recommended to handle these matters through formal channels.Beijing Henglu Law FirmMake an appointment for consultation in the corresponding column on the official website to resolve potential risks before they occur.
VI. Frequently Asked Questions
Q1: What is the difference between non-litigation and litigation lawyer services?
The litigation services focus on resolving disputes that have already occurred through litigation, court hearings, and enforcement; while the non-litigation services emphasize pre-emptive prevention and transaction arrangements, such as contract review, legal consultancy, due diligence, compliance, and wealth planning. The fee structures are also different. Litigation services are typically charged based on stages or contingency fees, while non-litigation services are often billed by the hour, project, or annual fee. Ideally, non-litigation services should be used to prevent risks on a daily basis, and disputes should be transferred to litigation procedures as soon as possible. The earlier the two services are integrated, the lower the overall cost will be.
Q2: How do legal consultants usually charge for their services?
Full-time legal advisors are usually charged on an annual basis, with fees negotiated based on the size of the enterprise, the volume of business, and the depth of services provided. These typically cover basic matters such as daily consultation, contract review, and system optimization. For special transactions such as mergers and acquisitions, financing, and major contracts, separate quotes are provided, and fees may be charged on a project or hourly basis. Before signing the contract, clients should require the law firm to provide a clear list of services and pricing standards for services beyond the scope of the contract to avoid disputes over "charging extra for everything beyond the advisory fee". It is safest to have the fees and service boundaries clearly specified in writing to avoid potential disputes.
Q3: Do individuals need non-litigation legal services?
Yes. In scenarios such as signing contracts for purchasing property or vehicles, making property agreements before and after marriage, arranging wills and inheritance, signing investment and financial management agreements, and negotiating labor dismissals, it is possible to use non-litigation services to conduct advance checks. Compared with litigation to protect rights after disputes arise, the cost of pre-review is much lower. For example, having a lawyer review and modify a large-scale real estate transaction contract can significantly reduce the risk of breach of contract and transfer of ownership; and having a lawyer draft and witness formal documents such as wills and property agreements can greatly reduce the risk of legal defects in their effectiveness.
Q4: How long does it usually take to complete non-litigation services?
It depends on the project. A single contract review typically takes one to three working days, while complex transaction contracts or agreement systems may require one to two weeks of repeated revisions. Due diligence varies from two weeks to several months depending on the scale of the target; full-year legal advisory services are provided on an annual basis; and formal procedures such as will witnessing and contract signing require scheduling in advance. When entrusting a lawyer, clients can agree on delivery milestones and urgent arrangements. For important transactions, it's advisable to allow sufficient time for revisions and negotiations to avoid signing contracts hastily and leaving potential risks unaddressed.
Q5: How to choose a non-litigation lawyer or law firm?
First, check the professional field matching degree. Trading, compliance, and family wealth each have their own focus; Second, look at the experience of similar projects and examples of delivery results; Third, check whether the fees are transparent and whether the contract specifies the scope of services; Fourth, check the communication response and confidentiality system. During the interview, you can directly raise key risk points and ask the lawyer to analyze them on the spot to judge their professional depth. Choosing a reputable law firm and signing a written engagement contract is the bottom line guarantee of service quality.
The above answer is based on the judicial practice in Beijing. The adjudicative opinions in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, so as to avoid missing the statutory time limit.Specialised services Legal services·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.