What The Law Ministry Said About Foreign Law Firms, Lawyers Practising In India
New Delhi: In response to a query from Rajya Sabha member Sanjay Kumar Jha, Union Law Minister Arjun Ram Meghwal addressed the regulation and practice of foreign lawyers and law firms in India. Meghwal outlined the Bar Council of India (BCI) Rules, published on 10th March 2023, which establish a framework for registering and regulating foreign lawyers and law firms in the country.
The minister stated that these rules permit foreign lawyers and law firms to practice foreign law, international law, and international arbitration matters in India under principles of reciprocity, subject to strict regulations. Chapter IV of the BCI Rules specifies the scope of legal practice allowed for foreign professionals, with key provisions detailed below:
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1. Foreign lawyers and firms may only provide advice on foreign laws and international laws, catering exclusively to foreign clients.
2. Their operations are restricted to non-litigious areas and do not extend to representation in courts, tribunals, or regulatory authorities empowered to take evidence on oath.
3. Foreign lawyers may participate in international commercial arbitration proceedings for their clients.
4. Entry into the Indian legal market is contingent upon reciprocity, meaning only lawyers from countries permitting Indian lawyers to practice will be allowed.
The BCI retains the authority to issue additional directives to ensure compliance with these rules.
The law minister highlighted the rationale behind these regulations, noting the increasing globalisation of legal practices and the growing demand for expertise in international legal matters. The rules aim to create a dynamic and responsive legal ecosystem in India, fostering growth in the legal profession while addressing concerns related to foreign direct investment and establishing India as a hub for international commercial arbitration.
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The BCI believes that opening select areas of legal practice to foreign professionals will benefit Indian lawyers and law firms, particularly younger practitioners. Far from posing a threat to domestic legal professionals, the presence of foreign lawyers is expected to provide opportunities for collaboration, knowledge exchange, and skill development.
The initiative, according to the BCI, marks a significant step towards modernising India’s legal sector while maintaining its integrity and ensuring mutual benefits for Indian and foreign legal practitioners.
