Kasturi Rajesh Shirwadkar
Introduction
For years, India’s legal market has been closed to outsiders, a place where foreign law firms
could peer in, but not set up shop. But with the Bar Council of India (BCI) first publishing its
regulatory rules in 2023, and then revising them again recently, the door is finally ajar with
the BCI making the regulatory demands stricter. This isn’t just about trade, it’s a careful,
calculated step between opening up and protecting a profession. Let’s break down the
background, the latest changes and what it means for the future of Indian la
Background
The BCI first notified the Rules for Registration and Regulation of Foreign Lawyers and
Foreign Law Firms in India, 2022 (2023 Rules), which were gazetted on March 10, 2023.
Yet, despite this supposed milestone, the results were underwhelming.
Adding to the drama, there’s an impending constitutional challenge. A writ petition is
currently before the Delhi High Court against the BCI 2023 Rules, arguing that the BCI may
lack the authority to allow foreign lawyers to practice in non-litigious matters in India under
the Advocates Act, 1961. This means foreign law firms would have to operate with the fact of
uncertainty that the registration they receive by the BCI could, in the end, be deemed ultra
vires. The last thing any global firm needs is a sudden legal plot twist.
Differences
The new revised rules of the BCI (2025 Rules) published around May 2025, for the entry of
foreign lawyers and foreign law firms are amendments to the 2023 Rules. These revisions
mainly focus on strengthening the regulatory framework, clarifying the scope of practice and
explicitly safeguarding the interests of Indian Advocates. Here are the key differences
introduced by the revised rules:
| Feature | 2023 Rules | 2025 Revised Rules |
| Indian Advocates | The original rules did not explicitly address or create a mechanism for dual status for Indian lawyers. | Indian advocates are now explicitly permitted to register as foreign lawyers or foreign law firms to practice foreign and international law consultancy in India without losing their right to practice Indian law in domestic forums. |
| New Entity Type | Focus on foreign lawyers and foreign law firms. | Introduced “Indian-Foreign Law Firms”, a new category for Indian legal entities that can practice both Indian and non-litigious foreign law. |
| Scope of Practice | Foreign lawyers/ foreign law firms could open offices and engage Indian advocates to practice non-litigious matters on a reciprocal basis (transactional/ corporate work, arbitration, or advice on foreign law). They were prohibited from appearing before Indian courts/ tribunals. | Reiterates and expands non litigious scope involving foreign or international law, with detailed lists of permissible/ prohibited activities (e.g., joint ventures, mergers and acquisitions, intellectual property matters, contract drafting, etc.). Clarifies that Indian lawyers in foreign law firms cannot represent clients in Indian courts on behalf of foreign lawyers/ foreign law firms, unless acting independently. Clarifies that Indian lawyers may work as employees/ consultants in foreign law firms abroad without registration |
| Partnerships | Did not provide for partnerships. | Permits formal partnerships but only with registered Indian lawyers or firms that are compliant with the 2023 Rules. |
| Fly-In, Fly-Out | Permitted a casual 60-day visit without formal reporting | The 60-day limit remains, but a compulsory declaration in Form C must be filed with the BCI for each individual visit |
Implications
In the course of the implementation of these revised rules, the Indian legal system would have
to deal with two main implications:
- Increased Competition- The entry of international firms, with their global best
practices and higher fee scales, will undoubtedly raise the standards for Indian law
firms, but also increase competitive pressures particularly small and mid-sized firms.
The BCI is therefore keen on promoting the growth of “Indian-Foreign Law Firms”
and reciprocal rights for Indian lawyers abroad. - The Arbitration Magnet- By explicitly allowing foreign firms to represent clients in
international commercial arbitration, provided the matter involves foreign or
international law, the BCI is serious about establishing India as a premier hub for
international commercial arbitration. Its success however depends on whether the new
restrictions on Fly-In, Fly-Out ultimately deter or attract international arbitration
experts.
While the BCI’s move is a major step towards liberalisation, it creates a heavily controlled
environment with a high cost in fees and compliance. Ultimately, the future rests on whether
foreign law firms view Indian’s high regulatory hurdle as worthy enough to access an
increasingly critical legal market.
