From 1902 to 1909 Krause was a member of the board of the German bar association and Chairman of the Berlin bar association from 1905 to 1917. He was elected as a National Liberal member of the Prussian Parliament (Abgeordnetenhaus), representing the constituency of Königsberg-Fischhausen, in 1888 and became its Vice-President in 1896.[1][2]
Krause was the Chairman of the German Association of inland navigation in 1904-1906 and became State Secretary of the Reichsjustizamt on 7 August 1917. He remained in this position throughout the German November Revolution and was replaced by Otto Landsberg on 13 February 1919.[1][2]
Krause became a member of the Prussian Constitutional Assembly ("Preußische Landesversammlung") in 1919 and the Prussian Landtag in 1921, representing the Deutsche Volkspartei.[1][2]
Krause died in Berlin, where a street ("Paul-Krause-Strasse") is named after him.[3]