Definition and legal framework of self-employment after the 2nd exam
Die Self-employment after the 2nd state exam in the legal context denotes any professional activity that individuals with a completed second legal state examination (assessor’s exam) carry out independently, on their own account and at their own risk, without being subject to a fixed employment relationship. In Germany, the 2nd state exam marks the end of regular legal training and opens the possibility for independent legal advisory or judicial activity, particularly as Rechtsanwalt, notary, or in other liberal professions.
Requirements for self-employment after the 2nd exam
Passing the second state examination
The essential formal requirement is the successful completion of the assessor’s exam. Only with the attainment of the title “fully qualified lawyer” are access rights to self-employed activities created. The certificate of passing this examination must regularly be presented during registrations or admission procedures.
Admission requirements for independent professional activities
Taking up self-employment in the legal field usually requires formal admission, for example as Rechtsanwalt or notary. In addition to the educational qualification, further requirements apply, such as:
- Personal reliability and suitability in accordance with relevant laws (e.g., Federal Lawyers’ Act)
- Proof of a professional liability insurance
- No conflicting criminal or professional legal obstacles
Other legal requirements
Depending on the professional profile, special regulations regarding the law office location, organization, compliance with professional legal provisions, acceptance of clients, and professional secrets may also be required.
Forms of self-employment after the 2nd exam
Legal consulting
One of the classic alternatives is founding your own law firm as Rechtsanwalt. The activity is carried out independently, in compliance with professional regulations.
Notary activity
With the 2nd exam—after a successful application and admission process—an appointment to a notary office is also possible. Here too, self-employment is present in the legal sense.
Independent activity in other legal professions
In addition to the mentioned career paths, advisory, expert, or mediatory roles are also possible as independent activities after the 2nd state exam, provided that there are no statutory prohibitions.
Legal duties and responsibilities
Personal responsibility and liability
Self-employed individuals after the 2nd exam act on their own account and bear the full entrepreneurial risk. They are personally liable for breaches of duty arising from client relationships or for defective service or work performance, regardless of the chosen corporate form.
Professional law and confidentiality
The professional practice of independent legal service providers is subject to strict statutory requirements, particularly confidentiality, the prohibition on representing conflicting interests, and the duty of special care when taking on mandates.
Social security law status
Self-employed persons are generally responsible for their own social security. This includes, in particular, registration with the relevant pension institution (e.g., pension fund for Rechtsanwälte) or optionally with statutory or private health and pension insurance. In many cases there is no compulsory membership in the statutory social security scheme.
Corporate and tax aspects
Permissible corporate forms
Solo practice as well as the formation of law firms, partnerships, or professional practice companies is possible after the 2nd exam. Each legal form must comply with the relevant commercial and professional regulations.
Tax obligations
Self-employed individuals are subject to income taxation (income tax, if applicable corporate income tax and trade tax for certain corporate forms), as well as VAT reporting and remittance obligations, provided statutory exemption thresholds are exceeded.
Registration and commencement of self-employed activities
Reporting and notification obligations
Taking up self-employment after the 2nd exam must be reported to several authorities, in particular:
- Tax office: For tax registration
- Relevant professional bodies (e.g., for entry into the pension scheme)
- Trade office, if the activity does not fall under the catalogue of liberal professions
Required insurances
Before starting work, sufficient professional liability insurance must be demonstrated. The requirements for minimum coverage amounts depend on the type of professional activity and the corporate structure.
Termination of self-employed activities
Deregistration and legal consequences
If self-employment is given up, there are various deregistration obligations to authorities and institutions (tax office, social security, professional registers). Failure to comply with these obligations can result in adverse tax and social security consequences.
Post-liability and responsibility after termination
For mandates already undertaken or contracts already concluded, even after cessation of professional practice there remains a post-liability for possible breaches of duty. The duration of post-liability is determined by statutory limitation periods.
Conclusion and summary
Die Self-employment after the 2nd exam is characterized by a multitude of legal framework conditions. It particularly requires the successful completion of the assessor’s exam as well as compliance with professional, tax, and social security obligations. Independent professional activity demands comprehensive knowledge in professional, corporate, and liability law. Specific contractual, liability, and organizational provisions regulate the protected handling of client relationships and professional practice. Compliance with these regulations minimizes risks and facilitates successful self-employment after the 2nd state exam.
Frequently Asked Questions
What professional requirements must be met for self-employment after the 2nd exam?
After the second state law exam, admission to the bar association in accordance with § 4 BRAO is first required to be permitted to work independently as Rechtsanwalt. This requires a corresponding application, including proof of passing the second exam and the required professional liability insurance in accordance with § 51 BRAO. Establishing your own office or forming a partnership additionally requires compliance with the professional regulations regarding office location (§ 27 BRAO) and practice communities (§§ 59a ff. BRAO). Entries in the bar register and possibly in the partnership register are required depending on the legal form. For other independent legal activities, such as an in-house lawyer, the legal provisions for providing legal services must be observed (§§ 1 ff. RDG), particularly if no bar admission exists.
What regulations apply to the obligation to obtain professional liability insurance?
According to § 51 BRAO, every self-employed Rechtsanwalt is required to take out professional liability insurance with a minimum sum insured of €250,000 per claim and to maintain this for the entire duration of their admission. The details must be provided to the competent bar association. Working without sufficient insurance may result in revocation of admission (§ 14 para. 2 No. 9 BRAO). When choosing an insurance company, ensure it is authorized by the Federal Financial Supervisory Authority (BaFin). The insurance must cover all typical liability risks arising from legal practice, with special arrangements possibly required for special fields of activity.
What notification obligations to authorities exist when taking up self-employment?
When starting self-employed work, there are notification obligations to several authorities. Firstly, the start of freelance work must be reported to the relevant tax office to obtain a tax number and, if applicable, to submit VAT advance returns (§§ 18, 138 AO). The opening of the office must be reported to the bar association, with further notification obligations regarding changes of office location or other changes in professional practice (§ 27 BRAO). Depending on the legal form, notifications to the commercial register (especially for partnerships or GmbH) or the competent registry court may also be required.
What professional restrictions apply to advertising measures?
Advertising by Rechtsanwälte is subject to the principles of objectivity and truthfulness pursuant to § 43b BRAO and § 6 BORA. Advertising must not be aimed at soliciting individual assignments and must not contain misleading or comparative statements. BORA makes detailed requirements, particularly regarding the form and content: information about specialist titles, areas of practice, and qualifications must correspond to the actual circumstances. Electronic advertising is also subject to data protection regulations (GDPR, § 7 UWG). Breaches of advertising restrictions are subject to professional sanctions and may even result in reprimand or prohibition from practicing.
Which social security aspects need to be considered?
Self-employed Rechtsanwälte are not subject to the statutory pension insurance obligation, but must become members of the relevant legal pension scheme. The contribution obligations are determined by the respective rules of the pension scheme and are income dependent. Health and nursing care insurance must be arranged on one’s own initiative, with freedom of choice between statutory and private insurance. There are no statutory mandatory insurances for illness, occupational disability, or unemployment, so private coverage should be carefully considered and is professionally recommended.
What tax obligations arise with self-employment?
Self-employment as a lawyer is considered a freelance activity according to § 18 EStG, so an annual income tax return must be filed. Income-expenditure statements (§ 4 para. 3 EStG) must be prepared, provided that there is no commercial business. If certain turnover limits are exceeded (currently €22,000 in the previous year, €50,000 in the current year), VAT must be charged and regularly remitted (§ 19 UStG – small business regulation). In addition, prepayments for income tax and, in some cases, trade tax (as an exception, in the case of a legal professional GmbH) must be made. Deadlines and formal requirements are set by the tax office; non-compliance may lead to tax sanctions.