Cross-Border Counsel: Decoding The 2025 Amendment To The Bar Council Rules On Practice By Foreign Law Firms & Lawyers In India
In March 2023, the Bar Council of India (“BCI”) notified the BCI Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022 (“2022 Rules”). The 2022 Rules opened the door for foreign lawyers and foreign law firms to practice foreign and international laws in India in non-litigious matters including legal advisory, corporate transactions and international commercial arbitration. Vehement opposition by Indian lawyers, law firms and State Bar Councils alike, have led the BCI to amend and effectively replace the 2022 Rules vide notification in the official gazette on 13th May, 2025 (“2025 Amendment”).
The 2025 Amendment provides clarity on the scope of the 2022 Rules without derogating from the fundamental principle enshrined therein: reciprocity. What are the implications of the 2025 Amendment, its potential impact on India's legal profession, foreign law firms, and the broader regulatory framework governing international legal services?
Historical Context
The BCI initially opposed the entry of foreign lawyers and foreign law firms into India in any form. When the Madras High Court, in A.K. Balaji v. Government of India WP No. 5614 of 2004, by its 21st December, 2012 judgment granted foreign lawyers the right to advise on a fly-in, fly-out basis and to appear in international commercial arbitrations in India, it was the BCI which challenged the said decision before the Supreme Court of India (“Supreme Court”).
The Supreme Court, in Bar Council of India v. A. K. Balaji and Ors. C.A. No. 8028 of 2015, by its judgment dated 13th March, 2018 diluted the blanket permission granted by the Madras High Court, while providing BCI the liberty to frame appropriate rules on the entry of foreign lawyers and law firms in India.
The 2022 Rules
The objects and reasons of the 2022 Rules state that they had been introduced to enable foreign lawyers to practice foreign law in India, stating as follows:
“Taking an all-inclusive view, 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.”
Broadly, the 2022 Rules permitted foreign lawyers and foreign law firms, who obtained registrations with the BCI under the 2022 Rules, to inter alia do the following:
• Provide advice on non-litigious matters including transactional work such as joint ventures, mergers and acquisitions, intellectual property matters, drafting of contracts and other related matters, limited to issues of foreign / international law.
• Appear in international commercial arbitration for clients having a registered address / principal office in another country.
• Indian advocates enrolled with State Bar Councils in India, and who are Partners or Associates, in foreign law firms may take up only non-litigious matters and can advise on foreign law / international law, and no benefit of enrolment in India may be claimed by them.
• Setting up of offices in India on a reciprocal basis.
The 2022 Rules also prescribed a “fly-in, fly-out” exception, whereby unregistered foreign lawyers and foreign law firms could provide legal advice to Indian clients on foreign / international law.
Consequently, the 2022 Rules prohibited foreign lawyers and foreign law firms, whether registered with the BCI or not, from undertaking inter alia any of the following activities: advising clients on Indian law; appearing before courts, tribunals, or statutory authorities in India; engaging in litigation practice; or undertaking any other work that requires enrolment with the BCI or a State Bar Council.
The 2025 Amendment
The 2025 Amendment amends and effectively replaces the 2022 Rules. However, the amendment aims to provide clarity on primarily the following aspects:
• Foreign lawyers and law firms are permitted to represent clients, having their principal office is in a foreign country, in international arbitrations in India, when the issue(s) involved are limited to foreign law, international law or a combination thereof. It bears emphasis that the 2022 Rules permitted foreign lawyers and law firms to appear in international commercial arbitration proceedings in India, regardless of whether foreign law was involved.
• Foreign lawyers and foreign law firms may practice law in India on a “fly-in, fly out” basis without registration, subject to the following conditions: (i) their activities must be limited to advising on foreign law, their own legal system, or international legal issues; (ii) engagements may originate either within or outside India; (iii) they must not establish any office, infrastructure, or maintain a regular presence in India; (iv) their cumulative presence must not exceed 60 consecutive calendar days within any 12-month period, counted from the initial date of arrival, irrespective of any exits and re-entries; (v) they must submit a declaration in Form C (under the 2022 Rules) detailing the nature of work, areas of law, client particulars, jurisdictions involved, and a confirmation that Indian law will not be practiced; (vi) any disputes regarding the scope of permissible practice shall be decided by the Bar Council of India; and (vii) the applicable Code of Ethics and other regulatory provisions shall apply unless specifically exempted.
Notably, while the 2022 Rules referenced the “fly-in, fly-out” exception, it did not prescribe the aforesaid limitations in the same detail.
• Partnerships between foreign lawyers and law firms, and Indian lawyers and law firms are permitted only when all parties are registered under the 2022 Rules. However, for referral arrangements or engagement contracts for consultancy and advisory, would not require the Indian lawyer and law firm to be registered under the 2022 Rules. Again, while the 2022 Rules permitted informal collaborations, it did not prescribe the aforesaid with the same specificity.
• In a deviation from the 2022 Rules on the permitted activities of Indian enrolled Partners and Associates in foreign law firms, the 2025 Amendment clarifies that such Partners and Associates may appear in Indian courts and tribunals only when such matters are referred to them by their respective foreign law firms, and not when practising through foreign law firms.
• Clear definitions of relevant terms, including: (a) 'Foreign Lawyer'; (b) 'Indian Advocate/Lawyer'; (c) 'Indian Advocate/Lawyer who seeks registration as a foreign lawyer'; (d) 'Foreign Law Firm'; (e) 'Indian Law Firm'; (f) 'Indian-Foreign Law Firm'.
• The 2025 Amendment also introduces stricter procedural prerequisites for registration, through a detailed, comprehensive and exhaustive registration process comprising of numerous documentary requirements, declarations and recurring compliances.
The legal profession in India is not treated as a commercial activity or a contract of service. The legal field is rooted in fiduciary and ethical responsibilities, aimed at ensuring equal access of justice. In this context, the practice of law in India is regulated by the BCI under the Advocates Act, 1961.
India is currently the fourth largest economy and is poised to become the third largest by 2030 with a projected GDP of USD 7.3 trillion as per S&P Global Inc., consequently the demand for legal services is expected to surge. The UK Free Trade Agreement, alongside other bilateral trade pacts, underscores India's integration with foreign jurisdictions and amplifies the need for foreign lawyers and law firms. The demand for an open, responsive and receptive legal framework in India, stemming from clients and businesses operating in international and cross-border markets resulted in the BCI framing the initial 2022 Rules allowing access to foreign law firms and lawyers to the India market with clear restrictions. The BCI believes that opening the legal profession in India to foreign lawyers, limited to the practice of foreign law, handling internal legal non-litigious matters and participating in international arbitrations will ultimately benefit Indian lawyers and serve the demand for such services.
The 2025 Amendment is a step forward in the same direction, striking a balance between offering foreign law firms and lawyers' access to markets in India, whilst protecting and safeguarding the interests of Indian law firms and lawyers. To some extent it expands the permissible scope of operations for foreign law firms and lawyers in partnership with Indian law firms and lawyers, whilst imposing stringent procedural and regulatory requirements for claiming such benefits. The 2025 Amendment also affords an opportunity for Indian law firms and lawyers to collaborate with their foreign counterparts, without impeding or contravening the rights and benefits available to them, under the existing and applicable statutory framework.
Nonetheless, the exhaustive compliance requirements, coupled with pending judicial challenges, may initially hinder participation of foreign law firms and lawyers who may follow a wait and watch approach. The 2022 Rules are currently under challenge before the Delhi High Court in Narendra Sharma & Ors. v. Bar Council of India & Ors. WP (C) No. 1556 of 2024, which although remains pending, does not restrain the operation of the 2022 Rules. Also, given the consistent resistance adopted by various associations of lawyers across the country, we anticipate that there may be fresh judicial challenges against the 2025 Amendment.
The response to the 2022 Rules which were ambiguous in parts has so far been lukewarm, with only three foreign law firms having entered India as of April 2025. The 2025 Amendment by cementing the principle of reciprocity, providing much-needed definitional clarity and broadening permissible activities for foreign lawyers and foreign law firms, now positions India as a more attractive destination for foreign law firms and lawyers. The 2025 Amendment is expected to attract greater participation by removal of procedural and legal uncertainties.
Looking ahead, the vast consumption of legal services driven by India's economic growth and global integration offers significant opportunities for collaboration between Indian and foreign legal professionals. While the stringent conditions of the 2025 Amendment may seem as an initial hurdle, there is optimism that as the dust settles, more foreign lawyers and law firms will look to enter and participate in permissible legal activities in India.
Author: Angad Varma, Partner & Agastya Sen, Senior Associate at Dua Associates. Views are personal.