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Foreign lawyers, law firms can practise in India: Bar Council of India
New Delhi: Foreign lawyers and law firms will now be allowed to practise in India in areas such as foreign law, international legal issues and arbitration matters, the Bar Council of India (BCI) decided on Wednesday, in a move that drew a positive response from Indian legal firms
New Delhi: Foreign lawyers and law firms will now be allowed to practise in India in areas such as foreign law, international legal issues and arbitration matters, the Bar Council of India (BCI) decided on Wednesday, in a move that drew a positive response from Indian legal firms.
The foreign law firms and lawyers will have to register themselves with the bar council under the BCI Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022, notified on March 10.
“Opening up of law practice in India to foreign lawyers in the field of practice of foreign law, diverse international legal issues in non-litigious matters and in international arbitration cases would go a long way in helping the legal profession/domain grow in India to the benefit of lawyers in India too,” the BCI said in a statement on Wednesday.
This is the first time that foreign law firms and lawyers have been permitted registration under the Advocates Act, 1961, which until now was confined exclusively to Indian citizens.
Under the new arrangement, foreign law firms and lawyers can give legal advice to their clients in India regarding foreign law and on diverse international legal issues but shall not be permitted to appear before any court, tribunal or any statutory or regulatory authority.
“The registration shall be permitted by the BCI based on the principle of reciprocity, i.e., similar facility should be in vogue for Indian lawyers/law firms in the country where the foreign law firm is primarily registered with,” according to the newly notified regulation. “Once registered in India, the foreign law firm/lawyer must renew the registration after five years.”
The cost of registration has been fixed at $25,000 for lawyers and $50,000 for law firms while renewal will incur cost of $10,000 and $20,000, respectively under the two heads, it said.
The legal fraternity in India is not likely to suffer any disadvantage due to a “restricted and well controlled and regulated” opening of legal sector to foreign firms/lawyers as the standards of Indian lawyers in proficiency in law is comparable with the international standards, the BCI said.
Indian legal firms welcomed the BCI’s move.
“Opening up law practice in India to foreign lawyers will create opportunities for tie-ups and partnerships,” said advocate Vinayak Burman, managing partner of Vertices Partners law firm. “It is likely to pave the way for potential consolidation, especially for firms dealing in the cross-border mergers and acquisitions (M&A) practice in particular.”
Adding another insight to the development, advocate Rajesh Narain Gupta, managing partner of SNG & Partners law firm, said, “Entry of foreign law firms will support in a big way the ambition of India to be more visible and valuable in a global context, especially on international trade and commerce. This will be a game changer for the mid-size firms and will also help the law firms in India to achieve more efficiency in talent management, IA, technology, domain knowledge in a global context, and management.”
The newly notified regulations entitle a foreign lawyer to practice law in India in non-litigious matters. The areas of practice of law by a foreign lawyer or law firm shall be laid down by BCI, which may consult the ministry of law and justice in this regard, the new rules said. “The BCI also reserves the right to deny registration and to suspend/cancel registration in the wake of professional misconduct or misrepresentation,” it said. “However, the BCI will not have disciplinary powers over foreign lawyers/firms.”
While the bar on appearing before any courts, tribunals or other statutory or regulatory authorities is provided under the new rules, the registered foreign lawyer shall be allowed to practice on transactional work/corporate work such as joint ventures, mergers and acquisitions, intellectual property matters, drafting of contracts and other related matters on reciprocal basis. They would not be allowed to get involved with any work pertaining to conveyancing of property, title investigation or similar works.
The rules also laid down the dos and don’ts for foreign lawyers, limiting their practice to transacting business, giving advice and opinion concerning the laws of the country to which they primarily belong. The client whom they advise will necessarily have to have an office in the foreign country in an international arbitration case being conducted in India.
