Bar Council of India tweaks rules to open doors for foreign law firms

The Bar Council of India (BCI) has amended its rules to allow foreign lawyers and law firms to handle all international arbitration cases in India.

Earlier, foreign law firms were only allowed to advise clients on non-litigious matters. The new rules come as a major change and provide a clearer framework for foreign lawyers working in India.

The updated rules were first announced in March 2023 under the Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022, but have officially in effect now.

According to Rule 8(3), “Indian advocates and partners in such law firms, in accordance with their enrollment rights and privileges to practice law in Indian courts, may take up matters referred by their respective foreign law firms, provided such matters fall within the scope of Indian law and the advocate’s permissible area of practice.”

This means foreign law firms registered in India can send court-related cases to Indian lawyers, who can then take up the cases in court on behalf of clients from the foreign firms.

While foreign lawyers still cannot appear in court themselves, they are now allowed to give legal advice, draft legal documents, and handle deals involving the law of their own country, international law, or other foreign laws.

“These arbitration cases may involve foreign law, international law, or a combination thereof,” the BCI rules noted. Even though the rules do not clearly say they cannot work on arbitrations involving Indian law, foreign firms can take these cases if the client’s main office or address is outside India.

The BCI also stated, “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.”

Another change in the rules is that Indian lawyers and firms can now register as foreign law firms. This allows them to work on foreign or international law in India without losing their right to practice Indian law. Earlier, Indian lawyers who joined foreign firms had to give up their Indian Bar registration.

The BCI said, “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.”

This broadens opportunity for Indian legal professionals to work on cross-border legal matters and compete globally.

To manage this system properly, the BCI has set strict rules for registering and renewing foreign law firm licenses. These include proof of legal qualifications, no-objection certificates, and compliance declarations.