The Solicitors Regulation Authority today began processing applications for companies looking to become an alternative business structure (ABS).

The SRA officially became a licensed regulator for ABSs before Christmas and set the first working day after the new year to start accepting applications. Depending on the complexity of the first applications received, the authority said it expects to announce the first successful applicants during the second half of February.

Law firms such as Irwin Mitchell and Keoghs have already declared their ambition to attract outside investment. The Co-operative said last month it would apply to become an ABS at the earliest possible opportunity.

SRA chief executive Antony Townsend (pictured) said: ‘This is a milestone that we have been working towards for nearly two years. It means the public can have confidence that ABSs providing reserved legal activities will be regulated according to the same rigorous professional standards as traditional law firms.’

Alternative business structures are a product of the 2007 Legal Services Act, which for the first time will enable law firms to secure outside investment to work in partnership with professionals from other industries, such as retailers.

Pearse McCabe, strategy and planning director at marketing consultants Rufus Leonard, predicted a ‘titanic battle for the hearts and minds of potential customers’.

He added: ‘On the one hand there is the established order that holds all the cards in terms of expertise and heritage in legal services.

‘On the other hand there are established brands that have a proven track record in going beyond their own core business if the prize is big enough.’