Bar Council notifies rules allowing foreign law firms limited practice in India

In a step towards opening up India’s legal sector, the country's top legal body, the Bar Council of India (BCI), has notified amended rules allowing foreign lawyers and law firms to practise foreign law in India on a limited basis.

The Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022—originally notified on 10 March 2023—have now been formally brought into force, the BCI said in a release on Wednesday.

The rules make it clear that foreign lawyers will be restricted to non-litigious matters, where cases are not taken to courts for resolution, involving foreign law, international law, and arbitration—particularly in the context of cross-border transactions and international disputes.

"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," the Council stated.

According to the BCI, the move aims to regulate foreign legal practice while safeguarding the interests of Indian advocates. 

The newly notified framework introduces a reciprocity model, enabling Indian lawyers and firms to register as foreign law practitioners abroad, thus expanding their global footprint without giving up the right to practice Indian law at home.

“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, adding that this dual registration mechanism offers Indian professionals a broader international platform.

To ensure oversight and limit undue competition, the BCI has implemented rigorous registration and renewal requirements for foreign entities. These include documentation related to legal qualifications, no-objection certificates, and formal declarations of regulatory compliance.

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Until now, foreign law firms were prohibited from practicing in India—both in litigation and non-litigation—unless they met the conditions under the Advocates Act, 1961, and the BCI rules. However, the law did allow foreign lawyers to temporarily enter India on a “fly-in, fly-out” basis to advise clients on foreign or international legal issues under specific conditions.

The move comes amid heightened activity in the Indian legal market. Rising compliance burdens, digital transformation, and a surge in deal-making are expected to push India Inc.’s legal spending beyond ₹60,000 crore in the current financial year.

Leading Indian law firms, including Cyril Amarchand Mangaldas, JSA Advocates & Solicitors, Trilegal, IndusLaw, and Argus Partners—have been aggressively expanding their teams, luring top talent with higher revenue-sharing arrangements, prestigious designations, and compensation packages that many rivals find hard to match. The result: a sweeping reshuffle at the top tier of India’s legal fraternity.

“This progresses a long-pending issue. I welcome the change,” said Cyril Shroff, managing partner, Cyril Amarchand Mangaldas.

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Mixed reactions

The move has been broadly welcomed by the legal industry. “This progresses a long pending issue. I welcome the change", said Cyril Shroff, managing partner, Cyril Amarchand Mangaldas.

"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," said Vivek K. Chandy, joint managing partner, JSA Advocates & Solicitors. 

“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.”

However, some questions remained about how effective the policy will be in practice.

"Rules in their present state cannot be said to allow foreign law firms to set up in India, albeit they allow them to do business in India in some limited ways only," said Akshat Pande, Managing Partner, Alpha Partners. "The registration of Indian lawyers and law firms as foreign lawyers and foreign law firms to enable them to practice in foreign laws seems unnecessary, as such practice will ultimately depend on the permissions granted by the foreign country concerned."

He added that the rules’ limitation to non-litigious matters has left room for confusion. "It is not clear how anything will change for Indian law firms, except that if any lawyers in India are authorised to practice any foreign law, they may choose to register as a foreign lawyer."

Haigreve Khaitan, senior partner at Khaitan & Co. law firm, expects many Indian law firms to now rapidly expand their practice internationally. 

"For those currently engaged in cross-border transactions or arbitration, depending on how the terms of each transaction or arbitration have been agreed upon, there may be a call to bring in foreign lawyers as experts for aspects involving foreign or international law," said Khaitan. 

Rohit Jain, managing partner, Singhania & Co., saw increased competition in arbitration and M&A. “We expect MNCs to prefer their home country law firms once they start having presence in India. Other than this, we do not expect much business loss to Indian law firms,” he said.