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- Independent practice groups promote cooperation between members of the liberal professions without giving up their independence.
- A variety of legal forms such as GbR, partnerships and corporations are possible.
- Members share resources, costs and income while retaining their own responsibility.
- The formation requires a written partnership agreement and compliance with professional regulations.
- Liability varies depending on the legal form; in a GbR, members are jointly and severally liable.
- Tax treatment depends on the legal form; GbR is subject to transparent taxation.
- Current trends such as digitalization and interdisciplinarity are influencing the development of communities.
Definition and legal basis:
An independent professional association is a form of professional cooperation between members of the liberal professions. It enables freelancers to carry out their activities together without giving up their professional independence. This form of cooperation is not defined in law, but has developed in practice and is shaped by case law and professional regulations.
Liberal professions include doctors, lawyers, tax consultants, architects, engineers and other independent scientific, artistic, literary, teaching or educational activities. The legal basis for professional associations can be found in the respective professional regulations and laws of the individual liberal professions.
Forms and structures:
Professional practice groups can be organized in various legal structures:
1. partnership under civil law (GbR): The most common form, regulated by §§ 705 ff. BGB.
2. Partnership company: Legal form specially designed for liberal professions.
3. Corporations: GmbHs or AGs are also permitted in some professions.
The specific structure depends on the specific professional regulations, which can vary depending on the professional group.
Features and characteristics:
1. joint professional practice: The members practice their profession jointly and share resources, costs and income.
2. professional independence: Each member retains his or her own professional responsibility and independence from instructions.
3. shared use of infrastructure: premises, staff and equipment are shared.
4. common external image: The community acts as a unit towards clients or patients.
5. profit and loss sharing: The members share the financial results of their joint activities.
Foundation and formal requirements:
As a rule, the establishment of a joint practice requires:
1. a written partnership agreement
2. Compliance with professional regulations (e.g. approval by the professional chamber)
3. Registration with the relevant authorities and chambers
4. If applicable, entry in the commercial or partnership register
The articles of association should regulate at least the following points:
– Purpose and duration of the community
– Rights and obligations of the members
– Distribution of profits and losses
– Decision-making and management
– Admission of new members and withdrawal of members
Liability and insurance:
Liability in a joint practice depends on the legal form chosen:
– In a GbR, the members are jointly and severally liable without limitation.
– In a partnership company, liability for professional errors can be limited to the acting partner.
– In the case of corporations, liability is generally limited to the company’s assets.
Appropriate professional indemnity insurance is generally required by professional law and should cover the specific risks of the community.
Tax aspects:
The tax treatment depends on the chosen legal form:
– GbR and partnership company: Transparent taxation; profits are attributed to the partners and taxed by them.
– Corporations: Subject to corporation tax.
Freelance activities are generally exempt from trade tax as long as no commercial activities are carried out.
Advantages and disadvantages:
Advantages:
– Synergy effects through resource sharing
– Expansion of the range of services
– Cost savings
– More flexible working hours
– Mutual professional support
Disadvantages:
– Potential conflicts between members
– Restriction of individual decision-making freedom
– More complex organization and administration
– Possible liability risks for partner errors
Special features in various occupational groups:
1. physicians: Joint practices (formerly “Gemeinschaftspraxen”) are widespread and are subject to specific regulations for statutory health insurance physicians.
2. lawyers: Partnerships are a common form of cooperation, whereby professional confidentiality obligations must be observed.
3. tax consultants and auditors: Interdisciplinary cooperation is possible, but is subject to strict professional regulations.
4 Architects and engineers: Joint offices and planning companies are common forms of cooperation.
Current trends and developments:
1. increasing interdisciplinarity: cross-professional collaboration is gaining in importance.
2. digitalization: virtual professional practice groups and digital collaboration tools are changing working methods.
3. internationalization: Cross-border cooperation is becoming more frequent, but brings with it legal challenges.
4. work-life balance: flexible working models in professional practice groups are becoming more important.
Summary:
Independent practice groups offer freelancers an attractive opportunity to benefit from the advantages of working together without giving up their professional independence. They enable synergies, cost savings and an expansion of the range of services. The specific structure must be carefully planned in order to comply with professional regulations and minimize potential conflicts. With the increasing complexity and interdisciplinarity of many specialist areas, professional practice groups are becoming more and more important and are constantly evolving to meet the changing requirements of the market and professionals.
