Professional practice company under the Tax Advisory Act; application for recognition
In order to operate a professional practice company in accordance with the provisions of the Tax Advisory Act, you must submit an application for recognition to the relevant Chamber of Tax Advisors.
Professional practice companies require recognition by the Chamber of Tax Consultants in whose chamber district the professional practice company has its registered office. No recognition is required for partnerships in which there is no limitation of liability of natural persons and to which only tax advisors and tax agents or members of a profession referred to in Section 50 (1) sentence 1 number 1 StBerG belong as partners and as members of the management and supervisory bodies, as well as auditing companies and accounting firms. The voluntary application for recognition remains unaffected. For professional practice companies which do not have their registered office in Germany, the Chamber of Tax Consultants of the chamber district in which the additional consulting office is maintained or in which the authorized representative for service is located shall be responsible.
The recognition is granted if
- the professional practice company, its partners and the members of the management and supervisory bodies meet the requirements of §§ 49, 50, § 51 Paragraph 5, §§ 55a and 55b StBerG,
- the professional practice company is not in a state of financial collapse, and
- proof of professional liability insurance has been provided or a provisional cover note has been issued.
A loss of assets pursuant to No. 2 shall be presumed if insolvency proceedings have been instituted against the assets of the professional practice company or if the professional practice company is entered in the register of debtors (Section 882b of the Code of Civil Procedure).
Upon recognition, the professional practice company becomes a member of the recognizing Chamber of Tax Consultants.
The application for recognition must contain the following information:
- Legal form, name, registered office and object of the professional practice company,
- the business addresses of the branches of the professional practice company, as well as
- the names and professions of the partners, the members of the management and supervisory bodies and all persons indirectly involved.
The competent chamber of tax consultants may demand the submission of suitable evidence, including the articles of association or the statutes, in order to verify the prerequisites.
The competent Chamber of Tax Consultants must be notified immediately of any changes in circumstances.
Tax consulting company:
Professional practice companies in which tax consultants and tax agents hold the majority of the voting rights and in which the majority of the members of the management body are tax consultants or tax agents may use the designation "tax consulting company".
Tax consultants and tax agents may form professional practice companies in accordance with § 49 StBerG. They may also organize themselves into professional practice companies for the purpose of practicing their profession, of which they are the sole partners. Professional practice companies for the joint practice of the profession in the Federal Republic of Germany may have the following legal forms:
- Companies under German law including commercial companies,
- European companies and
- companies permitted under the law of a member state of the European Union or a state party to the Agreement on the European Economic Area.
According to § 50 StBerG, tax advisors and tax agents are also permitted to form a professional partnership
- with members of a Chamber of Tax Consultants, a Chamber of Lawyers or the Chamber of Patent Attorneys as well as with auditors and sworn accountants,
- with members of foreign professions who practice a profession abroad which is comparable to the profession of tax advisor or tax agent with regard to the training for the profession and the powers of the professional, and where the requirements for the practice of the profession essentially correspond to the requirements of this Act,
- with attorneys-at-law, patent attorneys, auditors and certified public accountants of other states who, according to the Federal Lawyers' Act, the Patent Attorneys' Act or the Auditors' Act, are permitted to exercise their profession jointly with attorneys-at-law, patent attorneys, auditors or certified public accountants within the scope of this Act,
- with persons practicing a liberal profession in the professional partnership pursuant to Section 1 (2) of the Partnership Act, unless the association is incompatible with the tax advisor's or tax agent's profession, in particular his position as an independent body in the administration of tax law, or may jeopardize confidence in his independence.
The application for recognition as a professional practice company must be submitted in writing to the Chamber of Tax Consultants in whose chamber district the professional practice company has its registered office. The application shall state:
- Name, profession and professional domicile of the persons who are responsible for managing the professional practice company (§ 55b StBerG), as well as
- name, profession and professional establishment of the partners of the professional practice company (§ 50 paragraph 1 StBerG).
The competent chamber of tax advisors shall check whether the prerequisites according to § 53 paragraph 2 StBerG are fulfilled on the basis of the partnership agreement or the articles of association. If the requirements for recognition are met, the competent Chamber of Tax Consultants will recognize the professional practice company as a professional practice company by issuing a certificate pursuant to Section 54 Paragraph 4 StBerG. Prior to entry in the commercial and partnership register, the competent chamber of tax advisors may already confirm that all requirements for recognition have been met with the exception of entry in the commercial and partnership register.
Action before the tax court
Links to more information
Responsible for editing: Bayerisches Staatsministerium der Finanzen und für Heimat
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