BCI warns law firms against foreign tie-ups, clarifies cross-border limits

Bar Council reiterates that foreign law firms cannot practise Indian law, warns against joint branding or alliances that create the appearance of integrated operations

The Bar Council of India (BCI) has reiterated that foreign law firms and advocates cannot engage in any form of legal practice in India, directly or indirectly, warning that collaborations, alliances, or joint branding arrangements with Indian counterparts violate the Advocates Act, 1961.

 

In a fresh statement issued on October 21, the Council cautioned Indian firms against participating in or representing themselves as part of international networks, saying such arrangements effectively amount to the “practice of law” in India by foreign entities — an activity prohibited under Indian law. The BCI’s clarification replaces its earlier press release of August 6, 2025, which had named specific law firms. That release was later withdrawn following a statement made to the Delhi High Court.

 

 

According to the Council, combinations structured through Swiss Vereins, referral networks, strategic partnerships, or co-branded global platforms cannot be used to present an integrated practice in India. Such representations, it said, mislead clients and regulators by creating the impression of a unified multinational firm operating across jurisdictions.

 

“If an Indian firm projects itself as part of a foreign firm or uses its name or identity, it will be treated as that foreign firm practising Indian law,” the BCI said.

 

Council underscores accountability and compliance

 

The BCI warned that both natural and institutional persons facilitating such arrangements could face joint and several liability under the Advocates Act. Citing a 2018 Supreme Court ruling, it underscored that the prohibition on legal practice extends not only to individuals but also to firms, associations, and corporate entities.

 

The Council also noted that foreign lawyers may only engage in non-litigious work related to foreign and international law after registration under the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2023, as amended in 2025. They are expressly barred from appearing before courts or tribunals, drafting documents under Indian law, or advising on Indian transactions.

 

“The true nature of an activity determines whether it constitutes legal practice, regardless of the label or contractual structure used,” the Council clarified.

 

It has already sent show-cause notices to several entities suspected of entering into prohibited tie-ups. These firms have been directed to submit documentation and written explanations of their arrangements. Additional notices are expected to follow, and failure to comply could result in disciplinary proceedings, including suspension or removal from practice.

 

The BCI also reminded firms that promotional activities, press releases, or media campaigns projecting cross-border collaborations could amount to prohibited solicitation and advertising under its code of conduct.

 

Clarification on arbitration and foreign lawyer participation

 

Addressing confusion regarding arbitration, the Council clarified that foreign lawyers may appear in international arbitrations seated in India only when the dispute involves foreign or international law and only under the limited “fly-in fly-out” provision of Rule 8(5) of the 2023 Rules.

 

If the dispute concerns Indian law, or if the arbitral tribunal records evidence on oath, participation by foreign lawyers or firms is not permitted.

 

The BCI noted that arbitral tribunals, though not bound by the Indian Evidence Act, are legally competent to receive evidence, and the prohibition applies when evidence is taken on oath. Foreign counsel may assist or cross-examine witnesses only on issues strictly confined to foreign law and when such evidence is not recorded under oath. Any broader involvement would be treated as unauthorised practice of Indian law.

 

BCI reiterates restrictions on advertising and branding

 

Reinforcing its restrictions on law firm advertising, the Council advised that public communications must be limited to basic professional details such as names, addresses, and areas of practice. Announcements suggesting global mergers, alliances, or integrated operations are liable for regulatory scrutiny.

 

While maintaining that it remains open to a liberalised yet transparent framework for foreign participation, the BCI stressed that registration under its rules cannot be used to legitimise unified branding or joint operations with Indian firms.

 

“The permitted sphere of practice for foreign lawyers remains limited to non-litigious advisory work in foreign and international law,” the statement concluded. “Any structure or partnership that blurs this boundary will attract action under the Advocates Act.”