Foreign lawyers can now do limited practice in India as BCI enforces long-awaited rules

The Bar Council of India (BCI) has made amendments to its 2022 Rules to permit foreign lawyers and law firms to practice foreign law in India based on reciprocity. The Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022, which were initially announced on 10th March 2023, have now been officially enforced, as mentioned in a statement by the BCI on Wednesday.

According to the updated rules, foreign lawyers will be limited to handling non-litigious matters related to foreign law, international law, and arbitration. This specifically applies to cross-border transactions and international disputes that do not require litigation in courts.

In an announcement on May 15, 2023, the Council had granted permission for foreign lawyers and law firms to practice in India on a reciprocity basis, without modifying the 2022 Rules. 

"The BCI has further clarified that foreign lawyers may participate in international commercial arbitration conducted in India, provided such arbitration involves foreign or international law, thereby promoting India as a viable destination for international arbitration without compromising the rights of Indian legal professionals," BCI said in its statement.

As per the BCI, the objective of this initiative is to oversee the activities of foreign legal practitioners while ensuring the protection of Indian advocates' interests.

The recently implemented system follows a reciprocity approach, allowing Indian legal professionals and law firms to become registered as foreign law practitioners overseas. This enables them to enhance their international presence without forfeiting their right to practice Indian law within the country. 

Reciprocal laws refer to legislation enacted by a country or state that provides rights and benefits to the residents of another country or state under the condition that similar privileges are granted to the residents of the originating entity.

“Indian advocates and law firms may register as foreign lawyers or foreign law firms, allowing them to expand their practice to foreign law and international law consultancy without relinquishing their rights to practice Indian law in domestic forums,” the BCI said.

It added that the inclusion of this dual registration mechanism provides Indian professionals with an expanded global platform.

“The entry of foreign law firms into India is a positive step that will result in increased knowledge sharing, innovation and faster adoption of global best practices. This must be accompanied by appropriate regulatory reforms for Indian law firms to create a level playing field and allow them to compete successfully on the global stage while spurring domestic growth. Overall, a welcome move and we look forward to the period of dynamic growth this will usher in for India’s legal industry,” said Haigreve Khaitan, Senior Partner at Khaitan & Co.

“The regulatory framework aims to strike a balance between global integration and protect the interests of Indian legal practitioners by enabling Indian lawyers to access foreign legal markets based on principles of reciprocity,” the BCI said.

"We have just learnt that the BCI has notified the rules on entry of foreign law firms into India. The rules have been in the works for a long time and the notification dispels any uncertainties about the direction of the Indian legal market. While the actual impact of the new rules will be felt in the days and months to come, JSA welcomes any initiative of the Government that deepens and strengthens the Indian legal market’s ability to offer sophisticated legal advice to domestic and international clients doing business in India and globally," said Vivek K Chandy, Joint Managing Partner, JSA Advocates & Solicitors.