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Context:

India allows foreign law firms in non-litigious roles, starting debates on reciprocity and legal alignment.

Background

The Indian legal Sector has long resisted foreign participation. In 2000, over 40,000 lawyers protested in Delhi against a Law Commission proposal to allow foreign legal consultants, stressing competition and loss of opportunities.

The 2018 Supreme Court in Bar Council of India v/s A.K. Balaji's case prohibited foreign lawyers from practicing law in India, except for temporary advice on foreign law or participation in international arbitration.

The BCI’s 2023 and 2025 rules, however, signal a shift. In May 2025, the BCI amended its 2022 Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms.

The BCI’s amended rules 

Permitted Activities: Foreign lawyers and firms can:

• Advise on foreign and international law.
• Participate in international commercial arbitration in India, especially if it involves foreign or international law.
• Handle non-litigious work like drafting contracts, advising on mergers, or intellectual property matters.
• Set up offices in India, unlike the earlier “fly-in, fly-out” restriction.

Restrictions:

• They cannot practice Indian law or appear in Indian courts, tribunals, or statutory bodies.
• They cannot handle property conveyancing or title investigations.
• Indian lawyers working with foreign firms face the same non-litigious restrictions.

Reciprocity: Foreign lawyers can practice only if their home countries allow Indian lawyers to practice there. For example, if the UK permits Indian lawyers, UK lawyers can operate in India.

Registration: Foreign lawyers must register with the BCI, paying $25,000 (individuals) or $50,000 (firms), plus security deposits. They must prove they are licensed to practice in their home country.

Why the BCI Changed Its Stance?

The BCI justifies this shift for several reasons:

• Economic Growth: Allowing foreign lawyers attracts foreign direct investment (FDI) by facilitating cross-border transactions.
• Global Arbitration Hub: India aims to become a center for international commercial arbitration, competing with places like Singapore and Dubai.
• Mutual Benefits: The BCI believes Indian lawyers will gain exposure to global practices and job opportunities with foreign firms.
• Reciprocity: The rules promote fairness by ensuring Indian lawyers can practice abroad where foreign lawyers operate in India.

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Source: 

THE HINDU