AFTER DECADES OF RESISTANCE, Bar Council of India (BCI), which regulates legal profession, has agreed to allow foreign law firms and lawyers to establish their presence in the country, but with caveats. In rules notified on March 10, BCI said with the world “becoming a global village” and Indian legal fraternity’s proficiency now comparable to international standards, it was opening up the profession to make India a hub of international commercial arbitration.

Big law firms welcomed the move. Many posts by partners on LinkedIn said this was long overdue. “This will lead to expansion of opportunities for both Indian and foreign law firms," said Rajiv K. Luthra, founder and managing partner of Luthra And Luthra-Law Offices India.

The rules define scope of operation of foreign lawyers and firms, which includes advisory work on foreign and international laws, appearance in international commercial arbitration and advisory work on corporate transactions. The rules restrict appearance in any court, tribunal, statutory body or regulatory authority. The nature of work permitted by BCI without registration would cover foreign firms/lawyers doing a ‘fly in and fly out’ and advising on foreign law and diverse international legal issues. Also, the work should not exceed 60 days in a year.

Sajai Singh, chair, corporate commercial practice at JSA and council member, IBA LPD, says he sees this as a starting point. “There is a long way to go for allowing entry to foreign law firms into India in a commercially reasonable manner,” he says. Without addressing aspects such as recognition of Indian firms under Advocates Act, 1961, enforcement of disciplinary action on foreign firms/lawyers under the new rules and clarity on reciprocity, “as of now, the only real possibility for foreign law firms would be to set up a representative office; and while they await clarity, they will be able to create a brand in India,” he adds.

The brief — law firms

Foreign Law Firms in India: Hurdles Await