Croatia International Trade in Legal Services

Is there legislation governing the legal sector

Law on the Legal Profession (Zakon o odvjetništvu, Official Gazette "Narodne novine" No. 9/94, dated January 27, 1994 and No. 117 dated October 13, 2008

Under what title do lawyers practise?

Odvjetnik/odvjetnica translated as lawyer or attorney

How does an individual lawyer obtain a "licence" to practise law? How often must this be renewed?

Article 48 of the Lawyers Act states that "The right to be enrolled in the list of attorneys shall be given to the person fulfilling the following conditions: 1. that the person is of Croatian citizenship; 2. that the person possesses business capacity; 3. that the person's health conditions are such as to allow the performance of law practice activities; 4. that the person has graduated from a Faculty of Law of the Republic of Croatia;
5. that upon graduation the person has completed at least three years of apprenticeship in a law office or has had legal jobs in judicial bodies or has worked for at least five years on other legal jobs; 6. that the person has an active knowledge of the Croatian language; 7. that the person has passed the Bar Examination in the Republic of Croatia; 8. that no investigation and criminal procedure are conducted against the person as ex officio prosecution; 9. that the person is not employed; 10. that the person is worthy of carrying out the legal profession; 11. that the person does not perform other jobs which are incompatible with the legal profession.

Does this entitle the holder to practise throughout the country? If the law license only permits one to practice on a sub-national level, please explain the jurisdictional limits

The licence to practise in Croatia is a national one.

Are there certain activities that are "reserved" to those who are licensed to practise law in the jurisdiction?

Article 3 of the Lawyers Act defines 'legal assistance' as ithe work of lawyers which allows them to do the following:  give legal advice, draft documents (contracts, wills, statements, etc.), draw up claims, complaints, motions, requests, extraordinary legal remedies and other pleadings; represent their clients. Article 6 of the Act gives the Croatian Bar Association the right to initiate proceedings against non lawyers rendering legal assistance.

The Lawyers Act requires Croatian citizenship for enrollment as a lawyer. Since joining the EU in July 2013 Croatia must now allow other EU nationals the possibility to qualify as Croatian lawyers.

What legal forms can lawyers work in? (e.g. self employment, partnership, limited liability partnership, multi-disciplinary partnership, incorporation)

Croatian lawyers can use the following forms: (1) Sole practice - the principal can employ as many trainees or other personnel without limits. The only restriction is that he or she cannot employ other attorneys-at-law. He or she can have only one office; (2) Joint offices or partnerships made up of two or more lawyers enrolled with the Croatian Bar Association. These partnerships are regulated by the Law on the Legal Profession (ZAKON O ODVJETNISTVU) and the Law on Obligations (ZAKON O OBVEZNIM ODNOSIMA, the official gazette 'NARODNE NOVINE' No. 53/91, 73/91, 3/94); (3)  As a law firm with separate legal personality.

What other ethical or regulatory requirements must a licensed lawyer comply with? 

The Attorneys' Code of Ethics was passed at the Assembly of the Croatian Bar Association on 18 February, 1995 and amended on 12 June, 1999. It is available at the Croatian Bar website (www.hok-cba.hr/Default?sec=91)

Do law firms need to receive a "license" (or permission/approval) to practice law?

Partnership or law firm agreements must be registered with the Bar.  Law firms and partnerships are govered by the rules of the Company Law - ZAKON O TRGOVACKIM DRUSTVIMA (the official gazette 'NARODNE NOVINE' No. 111/93 and by the Law on Obligations.

Which authority issues licences? Are there different authorities for individuals and firms? 

Both lists of individual lawyers admitted to practice in Croatia and legally established law firms are maintained by the Croatian Bar Association.

Is the jurisdiction a member of the WTO?

Croatia joined the WTO on 30 November 2000

Has it made any commitments under GATS in legal services?

Croatia has made commitments in modes 1-3 in home country, foreign and international law. It is unbound for Croatian legal services.

Is the jurisdiction party to bilateral agreements which offer special treatment to businesses or individuals from particular countries?

As a member of the European Union, Croatia extends special treatment to individuals and businesses from other EEA states (EU plus Norway, Iceland and Liechenstein. Moreover, Bulgaria is also party to the EU's many bilateral agreements with other countries and free trade areas ( a full list of these can be found at here).

The EU has comprehensive provisions covering the free movement of lawyers from EEA countries (EU plus Norway, Iceland and Liechenstein) and Switzerland. These include the Establishment Directive for Lawyers (98/5/EC), the Lawyers' Services Directive (77/249/EC), the Framework Services Directive (2006/123/EC) and the Professional Qualifications Directive (2005/36/EC). Collectively these directives permit EEA lawyers to provide services freely cross border within the EEA, to estblish and provide legal services in host as well as home country and international law and to requalify as a host country lawyer. There are limitations on the applicability of the Establishment Directive to EEA and Swiss lawyers holding specific legal titles and EEA (or Swiss) nationality. Provisions covering trade in services are included in the EU's Free Trade Agreements (FTAs) with South Africa, Mexico, Chile, Colombia, Peru, Central America and Korea. Of these, only the agreement with Korea covers legal services explicitly and on the EU side offers no concessions beyond those offered to other members of the WTO. The other agreements simply contain a commitment from both sides to 'progressive liberalisation' of trade in services. Negotiations for future FTAs which might include provisions on legal services are ongoing with: Mercosur, Gulf Cooperation Council, Canada, India, Morocco, Ukraine, Moldova, Georgia, Armenia, Singapore, Malaysia, Vietnam.

Are foreign lawyers from different jurisdictions treated differently as a result of any such agreements?

As a member of the European Union,Croatia extends special treatment to individuals and businesses from other EEA states (EU plus Norway, Iceland and Liechenstein. Moreover, Bulgaria is also party to the EU's many bilateral agreements with other countries and free trade areas ( a full list of these can be found at here)

There are a few Austrian firms present in Croatia (Schonherr and Wolf Theiss) and offices of international networks such as CMS. A number of local firms are in close alliance with international firms such as DLA Piper.

Under the terms of Croatia's accession to the EU, lawyers from other EU, other EEA countries and Switzerland will in future be permitted to practise law on a fly in fly out basis in Croatia without restriction. Lawyers of other nationalities are not permitted to practise law, unless they are Croatian citizens and enrolled in the register of attorneys held by the Croatian Bar Association.

Croatia grants business visas to natural persons who stay temporarily in Croatia without acquiring remuneration from or within Croatia and without seeking employment in Croatia. This includes natural persons who stay temporarily in Croatia in order to conclude the contract for the sale of a service on behalf of the enterprise they are employed or mandated for or to participate in business meetings, fairs and other similar activities. Persons not based in Croatia and receiving no remuneration from a source located in Croatia, who are engaged in activities related to representing a services supplier for the purpose of   negotiating for the sale of the services of that supplier. Those representatives can not be engaged in making direct sales to the general public or in supplying services themselves. Some non-EEA countries (e.g. the US) are exempt from business visa requirements.

Only EU, EEA and Swiss nationals are permitted under the terms of Croatia's accesstion to the EU to practise as registered European lawyers. They may practise their home country law, European law and Croatian law in association with a Croatian lawyer.

A European lawyer registering with the Croatian Bar Association once its new rules are in place will be required to practice under his or her home professional title and abide by the Croatian Bar's code of ethics.

Under its WTO commitments, Croatia has committed that in proceedings involving international elements, parties can be represented before arbitration courts by lawyers who are members of bar associations of other countries

Representation of parties before courts can be practised only by the members of the Bar Council of Croatia. Under the terms of Croatia's accession to the EU, lawyers from other EU states will now be permitted to appear in court provided they do so in association with a local lawyer.

Can foreign lawyers requalify as local lawyers?

Not at present although under the terms of Croatia's accession to the EU, EU,  EEA and Swiss lawyers will be able to requalify either by way of an aptitude test or assimilation into the local profession.

Can a foreign law firm obtain a licence to open an office?

To date the only possible way for a foreign law firm to operate in Croatia is through a written contract with other domestic or foreign law offices in order to carry out activities of common interest and to provide mutual service.  Following its accession to the EU however, EU, EEA and Swiss law firms will be permitted to establish offices in Croatia.

Even if a foreign law firm does not require a legal licence must they register in some form in order to set up an office? (e.g. with a ministry of company affairs etc)

Not applicable

Not applicable

Not applicable

Not applicable

Foreign lawyers are not permitted to have ownership interests in Croatian law firms. Once the Establishment Directive is implemented in Croatia EEA lawyers will be able to own law firms outright and to enter freely into partnerships with Croatian lawyers.

No - although this will change once the Establishment Directive is implemented and EEA or Swiss lawyers will be able to employ Croatian lawyers.

No - although this will change once the Establishment Directive is implemented and EEA or Swiss lawyers will be able to enter partnerships with Croatian lawyers.

No although this will change once the Establishment Directive is implemented and Croatian lawyers will be able to employ EEA or Swiss lawyers to work as lawyers.

Croatian Bar Association: www.hok-cba.hr