BCI amends rules, restricts foreign lawyers to non-litigious matters

BCI amends 2022 rules to allow foreign lawyers and firms to practise foreign law in India on reciprocity, with provisions for Indian lawyers to register abroad

The Bar Council of India (BCI) on Wednesday amended its 2022 Rules, enabling foreign lawyers and law firms to practise foreign law in India on a reciprocity basis.

 

The Council had on May 15, 2023, allowed foreign lawyers and law firms to practise in India on a reciprocity basis, without amending the 2022 Rules. Reciprocal laws are statutes of one country or state that give rights and privileges to the citizens of another country or state if it extends similar privileges to the citizens of the former.

 

"The BCI’s 2025 amendments to the 2022 Rules mark a significant shift from the framework that existed in 2023. Previously, foreign lawyers were permitted to advise clients on foreign law in India only on a limited ‘fly-in, fly-out’ basis, without a formal registration process or clarity on the scope of permissible activities. The 2025 amendments now provide a structured and regulated pathway for foreign law firms and lawyers to operate in India, specifically allowing them to practise foreign law, participate in international arbitration, and offer legal advisory services in non-litigious matters such as contract drafting, mergers, and due diligence provided they do not advise on Indian law or appear in Indian courts," said Ajay Khatalawala, senior managing partner of law firm Little & Co.

 

The amended rules state that foreign lawyers will be restricted to non-litigious matters, where cases are not taken to courts for resolution. This is for areas of foreign law, international law, and arbitration, particularly in the context of cross-border transactions and international disputes.

 

"The BCI has further clarified that 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," the Council stated in its release.

 

The Council said the move aims to “regulate foreign legal practice while safeguarding the interests of Indian advocates”.

 

The newly notified rules enable Indian lawyers and law firms to register as foreign law practitioners abroad, allowing them to expand their practice to foreign law and international law consultancy, without giving up the right to practise Indian law in their home country.

 

The BCI added that this dual registration mechanism offers Indian legal professionals broader international horizon while maintaining their status as advocates under Indian law.

 

The Council has also implemented rigorous registration and renewal requirements for foreign entities, which include documentation related to legal qualifications, no-objection certificates, and formal declarations of regulatory compliance.

 

“The regulatory framework aims to strike a balance between global integration and protect the interests of Indian legal practitioners by enabling Indian lawyers to access foreign legal markets based on principles of reciprocity,” the BCI said.

 

“This progresses a long-pending issue. I welcome the change,” said Cyril Shroff, managing partner of law firm Cyril Amarchand Mangaldas.

 

The concept of Indian-Foreign Law Firm seems to be a new one introduced with these rules, said Rohit Jain, managing partner of law firm Singhania & Co.

 

"The preliminary reading implies that an Indian-Foreign Law Firm will be entitled to practise both Indian as well as foreign laws. This category appears to be interesting for foreign law firms to explore as it may open avenues for partnerships with Indian law firms under co-branded services,” Jain said.

 

"JSA welcomes any initiative of the government that deepens and strengthens the Indian legal market’s ability to offer sophisticated legal advice to domestic and international clients doing business in India and globally," said Vivek K Chandy, joint managing partner of law firm JSA Advocates & Solicitors.