In a major policy change with regard to legal practice in India, the Bar Council of India (BCI) has allowed foreign lawyers and law firms to practice in the country on a reciprocity basis. So far, foreign lawyers could operate here only on a 'fly in, fly out basis' that would be limited to coming in for a short period of time to advise their clients.
The BCI has notified the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022, which throws open the legal field, although with riders, to foreign lawyers and law firms.
“The Bar Council of India resolves to implement these Rules enabling the foreign lawyers and Foreign Law Firms to practice foreign law and diverse international law and international arbitration matters in India on the principle of reciprocity in a well defined, regulated and controlled manner...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 profession/domain grow in India to the benefit of lawyers in India too.
As per the rules laid down for foreign lawyers and law firms, they shall be allowed to practice on transactional work or corporate work such as joint ventures, mergers and acquisitions, intellectual property matters, drafting of contracts and other related matters on reciprocal basis.
They shall not be involved or permitted to do any work pertaining to conveyancing of property, Title investigation or similar works,” it said.
A foreign lawyer or a law firm shall not be entitled to practice law in India unless they are registered with the BCI. This prohibition will not apply to law practice by a foreign lawyer or foreign law firm in case such practice is done on a 'fly in and fly out basis', which does not in aggregate exceed 60 days in any period of 12 months.
Among the documents that foreign lawyers or law firms need to submit along with their application for registration are a certificate from the union law ministry and ministry of external affairs, a certificate from the competent authority of the concerned foreign country of primary qualification as also a certificate from the government of the foreign country of primary qualification.
The registration shall be valid for a period of five years and the foreign lawyer or firm would be required to renew it by filing an application for renewal within six months before the date on which such validity expires.
In a bid to assuage domestic concerns, the Council said these rules will also help to address the concerns expressed about the flow of Foreign Direct Investment in the country and making India a hub of international commercial arbitration. “In case, we sleep over the matter, the legal fraternity of India may be left behind in providing legal/professional expertise in accordance to the rule of law in a manner consistent with the best interests of this fast-growing class of clients in India. Let us ensure then an opportunity for creating development and growth for legal profession and in the legal sphere in India is not lost,” it said.
The Council also said that the standards of Indian lawyers in proficiency in law are comparable with the international standards and the legal fraternity in India is not likely to suffer any disadvantage in case law practice in the country is opened up to foreign lawyers in a restricted and well controlled and regulated manner on the principle of reciprocity.
