D: draft on new regulation of the professional law of lawyers

Feb 24, 2021 Benn-Ibler Rechtsanwälte

A government draft submitted by the German Federal Minister of Justice and Consumer Protection provides for a comprehensive new regulation of the professional law governing professional practice companies for lawyers and tax advisors.

The aim of the new regulation is to grant these professional groups freedom of organization under company law and to facilitate inter-professional cooperation. In future, the professional practice company is to be the central organizational form of legal and tax advice, whereby the company itself is subject to the professional regulations. This should facilitate cooperation with other independent professions.

In particular, freedom of organization under company law is to be guaranteed. The following company forms shall be available to professional practice companies:

• All companies provided for under EU law
• All companies under German law
• Companies in a legal form permitted under the law of an EU member state or EEA contracting state

In future, uniform requirements for the shareholder and capital structure are also envisaged. The previous minimum requirements are to be dropped because they are no longer necessary to ensure compliance with professional duties. This compliance is ensured by the professional practice company itself.

In addition, inter-professional cooperation is to be facilitated. Regulations are envisaged which, for example, allow lawyers to work together with doctors or architects in order to obtain specialization, particularly in the field of medical or building law.

Federal Ministry of Justice and Consumer Protection, Press Release (20.01.2021)