Czech Republic International Trade in Legal Services

Is there legislation governing the legal sector

Act No. 85/1996 Sb. of 13th March 1996 on the Legal Profession
(English version available at http://www.cak.cz/scripts/detail.php?id=1993 )
 

Under what title do lawyers practise?

Advokát

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

In order to become a lawyer in the Czech Republic a candidate must: 1) have a university degree in law, 2) have undertaken professional training as a legal trainee for a minimum of 3 years, 3) have passed the professional examination of the Czech Bar Association and 4) have been registered in the Register of Czech Bar Association.

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 the Czech Republic is a national one.

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

The provision of legal services is defined in Act No. 85/1996 as: "representing clients in proceedings before courts and other bodies, acting as a defence lawyer in criminal cases, giving legal advice, preparing documents, legal analyses and other forms of legal aid where these are provided on a permanent basis and for a fee".

Legal services in the territory of the Czech Republic may be provided, under conditions and in the manner stipulated by the Act on the Legal Profession by natural persons who are citizens and qualified lawyers of the EU Member State, State Parties to the European Economic Area Agreement or the Swiss Confederation  (hereinafter referred to as “home country”) or citizens of other states who are permanently established in a “home country” and have obtained the entitlement to provide legal services under the home-country professional title.

Czech lawyers may practice as sole practitioners, in a consortium or under the Commercial Code as members of an unlimited company, limited partnership company or limited liability company, provided that the object of business of any of these companies is solely the practice of legal profession and that only lawyers establish its membership.

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

The professional ethics governing Czech lawyers is set down in a Resolution of the Board of Directors of the Czech Bar Association No. 1/1997 (Bulletin of 31 October 1996)

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

According to the Czech Commercial Code, law firms have to be registered in the Commercial Register maintained by the court.

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

The Czech Bar Association registers both individual lawyers and firms (www.cak.cz)

Is the jurisdiction a member of the WTO?

The Czech Republic joined the WTO on 1 January 1995

Has it made any commitments under GATS in legal services?

As a member of the European Union, the Czech Republic extends special treatment to individuals and businesses from other EEA states (EU plus Norway, Iceland and Liechtenstein. Moreover, the Czech Republic 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 http://www.wto.org/english/tratop_e/region_e/rta_participation_map_e.htm?country_selected=none&sense=s). 

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

The EU has comprehensive provisions covering the free movement of lawyers from EEA countries (EU plus Norway, Iceland and Liechtenstein) 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 establish 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 contains newly liberalizing measures on legal services on the Korean side, and on the EU side offers no concessions beyond those offered to other members of the WTO. Legal services have also been included in the EU’s recent agreement with Canada and bind previous autonomous liberalization. The other agreements simply contain a commitment from both sides to 'progressive liberalization' of trade in services. Negotiations for future FTAs which might include provisions on legal services are ongoing with: Mercosur, Gulf Cooperation Council, India, Japan, Morocco, Ukraine, Moldova, Georgia, Armenia, Singapore, Malaysia, the US and Vietnam.

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

Lawyers from the EU, EFTA or Switzerland are covered by the various EU directives covering legal services (The Lawyers' Establishment Directive 98/5/EC, the Lawyers Services Directive 77/249/EC). The result of these directives is that any EU, EFTA or Swiss lawyer can provide legal assistance in Czech, as well as foreign and international, law and can requalify as a Czech advokat.  Foreign lawyers from outside these countries are more restricted in their scope of practice and may not requalify.

The Czech Bar has a record of 8 branches of foreign firms, including firms from the US, UK, Germany, Austria and the CIS.

Only European lawyers are entitled to provide legal services on a temporary basis without being registered, foreign lawyers must register with the Czech Bar Association. A visiting European lawyer is not authorized to make contracts for the transfer of real estate, mortgage contracts relating to the property, and contracts for the transfer or lease of an enterprise; they are also not authorized to authenticate signatures.

The Czech Republic is one of the 25 countries in Europe that has signed the Schengen agreement. This allows a non-EEA national to obtain a visa to enter one or more of the Schengen countries for business or tourism purposes on a single visit of up to 90 days, or to make multiple entries to the Schengen area on any number of occasions over a 180 day period, provided none of these is for longer than 90 days.  A number of non-EEA countries are exempt from visa requirements.

A lawyer who has been admitted to the Czech Bar as a “Foreign Lawyer“, (i.e. not from the EU, the European Economic Area Agreement, Swiss Confederation nor permanently established in a home country) according to Article 5a of the Act on the Legal Profession shall be entitled to provide legal services only in the law of the country in which he/she obtained his/her entitlement to provide legal services and in the area of international law.  European lawyers may also provide services in EU law and Czech law. When a European lawyer provides legal services involving the representation of clients before courts and other bodies, including defence in criminal proceedings, and where legislation stipulates that a party must be represented by a lawyer, or that only a lawyer may be the representative of a party, the European lawyer must appoint a Czech lawyer, upon agreement with his client, as a consultant for the proceedings.

All foreign lawyers (EU and otherwise) must comply with local codes of ethics and only act under their home title. Foreign lawyers (and foreign law firms) must take out indemnity insurance or submit a copy of their existing insurance policy to the Czech Bar for approval.

Foreign lawyers must hold a professional title in their home country and must prove that they are entitled to provide legal services in a foreign country. European lawyers must hold EU nationality or be citizens of an EU Member State, State Party to the European Economic Area Agreement or the Swiss Confederation (hereinafter referred to as “home country”) or citizens of other states being permanently established in a home country and hold a qualification (i.e.to obtain in their home country entitlement to provide legal services under their home-country professional title).

European lawyers (citizens of the EU Member State, State Party to the European Economic Area Agreement or the Swiss Confederation  (hereinafter referred to as “home country”) or citizens of other states being permanently established in a home country)  Union/EFTA and Swiss lawyers may appear in court provided they do so in association with a local lawyer.

Can foreign lawyers requalify as local lawyers?

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

A foreign law firm may establish in the Czech Republic to provide legal services under section 35 of the Act on the Legal Profession, if it:
a) has a registered office or a branch of his business in the law firm's home country,
b) its members are only lawyers or other individuals who are authorized to provide legal services in their home countries,
c) its business is exclusively the provision of legal services,
d) a foreign company or a branch of his business is entered in the Commercial Register
e) Legal services are provided only by lawyers and established European lawyers.       A Foreign law firm shall be obliged to submit to the Bar a counterpart or an officially verified copy of its contract of insurance of its members or of the Foreign Company itself, or a document issued by the insurance company or a foreign insurance company or another competent person certifying the existence of insurance

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)

No

No

No

No there are no limits on foreign participation in a law firm in the Czech Republic.

Yes this is expressly provided for in section 15a of the Act on the Legal Profession.

Yes but a Czech lawyer may only be a partner (or 'cooperate') in only one law firm.

Yes

Link to the Czech Bar Association: http://www.cak.cz/