Luxembourg International Trade in Legal Services

Is there legislation governing the legal sector

Legal Profession Act of 10 August 1991 (Loi sur la profession d’avocat) modified by the Act concerning the exercise of legal profession under the form of a legal entity (Loi concernant l’exercice de la profession d’avocat sous forme d’une personne morale) of 16 December 2011.

Under what title do lawyers practise?

 Avocat / Rechtsanwalt

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

In order to practice law in Luxembourg, one must be registered in one of the lists of the “Tableau de l’Ordre” (article 5 of the Act).  Following completion of the required University legal studies, candidates must undertake the required 2-year internship.

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 practice in Luxembourg is national.

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

Activities reserved to lawyers are mentioned in Article 2 of the Act. They include: assisting or representing clients, procedural acts on behalf of clients, pleading before any court or tribunal. In addition only lawyers are permitted to give legal advice in relation to financial benefits and draft contracts (Article 2 (2)).

Local nationality is not required but lawyers must hold the nationality of an EU member State. However, as an exception to this rule the “Conseil de l’ordre” (the Luxembourg Bar Association) may decide to accept nationals of non-EU States upon proof of reciprocity.

Article 1 (8) of the Act mentions that a lawyer may be self-employed; a lawyer can freely associate with another lawyer; and lawyers may practise as a legal entity (personne morale) i.e. a law firm.
Association between lawyers may take different legal forms (see article 34 of the Act) but collaboration cannot imply any form of subordination that might affect a lawyer's independence. Salaried lawyers are only subject to subordination concerning the determination of their working conditions.
Concerning law firm, the possibility for lawyers to establish them is recent (2011). Article 34-2 (1) mentions that legal forms of such entities may be non-trading companies (société civile) or commercial company (société commerciale) as provided for in Article 2 of the modified act of August 10, 1915. Legal entities registered in a foreign country may be registered.

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

Lawyers must comply with the « Règlement Intérieur de l’Ordre des Avocats du Barreau de Luxembourg » (=professional rules).
They must take an oath. 

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

Law firms must be registered on the “tableau des avocats de l’Ordre” (bar association); on list V if lawyers who work within the firm are registered in list I of the tableau, and list VI in other cases.  There are certain documents that must be communicated to the President of the Bar Association. For law firms in general (either national or foreign): The legal statutes of the firm; The list of the associate members of the law firm (to be sent in January every year); For foreign law firms only (additional):
Proof that the foreign legal entity is entitled to practise law in the country of origin (to be sent in January every year, proof must not be more than 3 months old);

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

The President of the Bar Association must be contacted to register a law firm.  The Conseil de l’ordre (council of the bar association) is the authority which decides on the possibility to inscribe the law firm in one of the lists.

Is the jurisdiction a member of the WTO?

Luxembourg joined the WTO on 1 January 1995

Has it made any commitments under GATS in legal services?

Luxembourg is party to the EU's commitments of modes 1-3 in home country and public international law. However, Luxembourg has added the requirement that the practice of host country law and international law (including EC law) are subject to registration as "avocat" at the Luxembourg Bar.

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, Luxembourg extends special treatment to individuals and businesses from other EEA states (EU plus Norway, Iceland and Liechtenstein). Luxembourg 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 athttp://www.wto.org/english/tratop_e/region_e/rta_participation_map_e.htm?country_selected=none&sense=s).

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 within 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 Luxembourgish as well as foreign and international law and can requalify as a Luxembourg avocat.  Foreign lawyers from outside the EU, EFTA or Switzerland are more restricted in their scope of practice.

There are a number of foreign law firms established in Luxembourg, mostly from other European Member States, including UK, German and Dutch firms. Although there is one Chinese firm that also has a presence. 

Provision of temporary services by a lawyer from a non-EU Member State is forbidden in Luxembourg.  For EU lawyers, see Art. 2 of Loi du 29 avril 1980 réglant l'activité en prestations de service lists the activities that they may undertake without residency or registration.  Article 3 requires EU lawyers taking part in court proceedings to act in concert with a registered lawyer and be introduced to the jurisdiction and President of the Bar of the place of practice.

Luxembourg 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.

Foreign lawyers may practise in Luxembourg under their home country title in the law of their home country or public international law.  EEA lawyers may establish under their home title and additionally practise local law in association with a Luxembourg lawyer.

Foreign lawyers must maintain a professional address or office in Luxembourg.

An EEA lawyer must hold EEA nationality and an EEA legal qualification.

Yes, if they registered on one of the lists on the tableau de l’Ordre or covered under the application of the temporary practice provisions.

Can foreign lawyers requalify as local lawyers?

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

Foreign law firms do not need a licence but must register with the Luxembourg Bar.

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

Restrictions are provided for in Article 34-3(3) of the Act. Shares must be nominative and can only be owned by individuals who fulfil the conditions to be an associate of a legal entity which practise law in Luxembourg. Members of decisional bodies of the law firms must also be associates in the law firm. To be registered on list V, one or more associate of the law firms must be registered on list I (fully qualified lawyers) and practise as a lawyer in Luxembourg permanently. He (or she or they) must also have a significant influence on the activity of the law firm. To be registered on list V, at least one of the associates must be registered on list I or list IV (foreign lawyers practicing permanently in Luxembourg under their foreign title) and practice permanently in Luxembourg.

There is no prohibition on employment of a Luxembourg lawyer by an EEA lawyer or law firm.

Yes provided that all of the partners are resident in Luxembourg.

Yes

Other useful sources or comments or links

Ordre des Avocats à la Cour Supérieure de Justice de Luxembourg http://www.barreau.lu/