BCI opens doors for foreign law firms to practice in India

The new regulations make it amply clear that the work of foreign lawyers will be strictly confined to non-litigious areas involving foreign law, international law and arbitration matters, particularly concerning cross-border transactions and international disputes.
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AndreyPopov

The Bar Council of India move to amend the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022 will not only open up doors for foreign lawyers and law firms to practice in India but also attract foreign investments in legal arena and move some of the arbitration cases to India.

The BCI earlier notified amended rules allowing foreign lawyers and law firms to practice foreign law in India on a reciprocity basis. The new regulations make it amply clear that the work of foreign lawyers will be strictly confined to non-litigious areas involving foreign law, international law and arbitration matters, particularly concerning cross-border transactions and international disputes.

Sonam Chandwani, Managing Partner KS Legal & Associates, said the policy’s success teeters on shaky ground as the reciprocal agreements with other nations are a gamble and the BCI’s steep fees could choke off the very competition it aims to foster.

To make this work, she said the BCI needs to slash bureaucratic red tape, sort out murky taxation issues and actively push for partnerships between Indian and foreign firms. If these issues are not sorted out, the policy will benefit only big players while leaving small town lawyers in the dust, she said.

“The stakes are high and India’s legal market could either soar as a global contender or stagnate under half baked execution. It could draw FDI and elevate India’s legal prestige, but only if the BCI plays its cards right,” she added.

dual registration

“The dual registration rule is a brilliant nudge for Indian lawyers to go global, but without reciprocal deals and inclusive policies, it risks widening the gap between the legal elite and everyone else,” said Chandwani.

Sagar Aggarwal, Managing Partner at Areness Law, said the foreign lawyers and law firms can represent clients with their principal office or address in a foreign country in international arbitration cases conducted in India.

The amendment is aimed at safeguarding the interests of Indian lawyers and sanctity of the Indian legal system which has its roots in Indian culture and society and in the same tone, the amendment has opened up the Indian legal sector for globalisation, he said.

What may be impacted are international arbitrations and certain quasi-legal proceedings where the foreign law firms have still been allowed to practice, said Aggarwal.

“This may lead to outsourcing of further legal operations to India with more collaborations and partnerships and open opportunities for Indian law graduates/ lawyers to relocate to other countries by working with foreign law firms in India,” he said.

Published on May 15, 2025

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