A prerequisite for admission is that the partners and members of the management and supervisory bodies belong to the professional groups listed in sections 59b and 59c BRAO. The professional practice company must have chosen an admissible legal form and must not be in a state of financial collapse. It must also provide evidence that it has taken out professional liability insurance or present a provisional cover note. The professional liability insurance must be taken out with an insurance company authorized to do business in Germany and must cover liability risks for financial losses arising from advice and representation in legal matters. It must be maintained for the duration of the activity.
Once licensed, professional practice companies become members of the licensing chambers.
No admission is required for partnerships in which, firstly, the liability of natural persons is not limited and, secondly, the partners and members of the management and supervisory bodies are exclusively lawyers, patent attorneys, tax consultants, tax agents, auditors or sworn accountants. However, they can voluntarily apply for admission. After admission, they also become members of the admitting bar association.
The regulations on professional practice companies came into force with effect from August 1, 2022. They have replaced the previously applicable regulations on law firms and significantly expanded the possibilities for professional associations of lawyers.