BCI Rules for registration & regulation of foreign lawyers or foreign law firms in India 2022

BCI lays down Rules for registration & regulation of foreign lawyers or foreign law firms in India 2022

The General Council of Bar Council of India has amended the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022. The original Rules had been notified on 10th March, 2023.

The Bar Council of India had initially opposed the entry of foreign lawyers and foreign law firms into India in any form. However, a significant judgment was delivered by the Bombay High Court in 2009 holding that the Reserve Bank of India was not justified in granting permission to foreign law firms to open liaison offices in India. Furthermore, the Court interpreted the expression “to practice the profession of law” under Section 29 of the Advocates Act, 1961, as encompassing both litigious and non-litigious matters. Consequently, it ruled that individuals or entities practicing non-litigious legal matters in India are also required to comply with the provisions of the Advocates Act, 1961.

Subsequently Madras High Court held that Foreign law firms or foreign lawyers cannot practice the profession of law in India either on the litigation or non-litigation side, unless they fulfill the requirement of the Advocates Act, 1961 and the Bar Council of India Rules. However, there is no bar either in the Act or the Rules for the foreign law firms or foreign lawyers to visit India for a temporary period on a “fly in and fly out” basis, for the purpose of giving legal advise to their clients in India regarding foreign law or their own system of law and on diverse international legal issues. It was further held that foreign lawyers cannot be debarred to come to India and conduct arbitration proceedings in respect of disputes arising out of a contract relating to international commercial arbitration. Also, the B.P.O. Companies providing wide range of customised and integrated services and functions to its customers do not come within the purview of the Advocates Act, 1961 or the Bar Council of India Rules.

Both the above judgments were challenged in the Supreme Court which held that (i) practice of law includes litigation as well as non litigation, (ii) advocates enrolled with the Bar Council alone are entitled to practice law, except as otherwise provided in any other law. All others can appear only with the permission of the court, authority or person before whom the proceedings are pending, (iii) visit of any foreign lawyer on fly in and fly out basis may amount to practice of law if it is on regular basis, (iv) It is not possible to hold that there is absolutely no bar to a foreign lawyer for conducting arbitrations in India. If the matter is governed by particular rules of an institution or if the matter otherwise falls under Section 32 or 33, there is no bar to conduct such proceedings in prescribed manner and (v) foreign law firms/companies or foreign lawyers cannot practice profession of law in India either in the litigation or in non-litigation side.

It was also proposed that the  Bar Council of India may also think of introducing some Qualifying Exam for the purpose of eligibility and exemptions for foreign law firms, if it does not adversely effect the interest of Indian Lawyers/Law Firms and the Government of India.

The Bar Council of India statd that it believes that opening up the legal profession in India to foreign lawyers, limited to the practice of foreign law, handling diverse international legal issues in non litigious matters, and participating in international arbitration cases will meaningfully contribute to the growth of the legal domain in India, ultimately benefiting Indian lawyers as well.

Accordingly, the BCI has notified the Bar Council of India Rules for registration and regulation of foreign lawyers or foreign law firms in India, 2022. These Rules has come In the instant appeal, the assessee had challenged the order of CIT(A) in confirming force from 14.05.2025.

Definition of Foreign Lawyer – “Foreign Lawyer” means any individual, law firm, limited liability partnership (LLP), company, corporation, or any other legal entity, by whatever name called or described, that is authorized to practice law under the regulatory framework of a foreign country. This includes engaging in non-litigious practice of law in India, such as legal consultancy, legal documentation, representation in arbitration proceedings, and other non-litigious legal activities related to foreign law and international law.

Definition of Indian Advocate/Lawyer – “Indian Advocate/Lawyer” would mean a person who is duly enrolled as an Advocate under the Advocates Act, 1961, on the rolls of any State Bar Council in India. Indian Lawyers are authorized to practice law before courts, tribunals, statutory authorities, and quasi judicial bodies, as well as to engage in non-litigious legal activities, including legal consultancy, documentation, and advisory, subject to the rules and regulations framed by the Bar Council of India and respective State Bar Councils.

Foreign Law Firm has been defined to mean any entity, including a partnership, LLP, company, or corporation, by whatever name called, that engages in legal work and is authorized to practice law under the laws of its home jurisdiction. Foreign Law Firms intending to operate in the legal arena in India, particularly in non- litigious areas such as foreign law and international law consultancy, documentation, and arbitration, must register with the Bar Council of India and comply with all applicable regulations governing the practice of law in India.

Indian Law Firm has been defined as a partnership, limited liability partnership (LLP), private company, or other legal entity recognized under Indian law, whose members, partners, or shareholders are exclusively Indian Lawyers enrolled under the Advocates Act, 1961. Indian Law Firms may engage in the practice of law, including but not limited to, Legal consultancy and advisory, drafting and vetting of legal documents and instruments, representation in litigation, arbitration, mediation, and other dispute resolution forums, Providing legal training or conducting legal research and may do any other legal work as authorized under Indian law

An “Indian-Foreign Law Firm” has been defined as any Indian legal entity, including but not limited to a partnership, Limited Liability Partnership (LLP), company, or corporation, that engages in legal work and is authorized to practice law under the laws of India. Such firms may additionally register under the category of Indian-Foreign Law Firm as permitted by the Bar Council of India, thereby gaining rights similar to those conferred upon individual Indian advocates registered as foreign lawyers. Indian-Foreign Law Firms intending to operate in the legal arena, particularly in non-litigious areas such as foreign law and international law consultancy, documentation, and arbitration, must adhere to specific principles.

Registration of Foreign Lawyers and Foreign Law Firms – The Rules provide for registration of Foreign Lawyers and Foreign Law Firms- Scope, Conditions, and Limitations for Practicing Law in India. A foreign lawyer or foreign law firm shall not be permitted to practice law in India unless registered with the Bar Council of India under these Rules. This applies to Indian Advocates and Indian Law Firms seeking registration as Foreign Lawyer and Foreign Law Firm as per applicable rules hereinunder Provided that this prohibition shall not apply to the practice of law by a foreign lawyer or foreign law firm conducted on a “fly-in, fly-out” basis, subject to the following conditions.

Application for Registration

The Rules also provide for detailed procedure for application by a foreign lawyer or foreign law firm, including Indian lawyers or Indian-foreign law firms seeking registration as Foreign Lawyers or Foreign Law Firms. ‘FORM A’ has been prescribed for the application along with required certificates, the registration fee (USD 15000 Individual Foreign Lawyer and USD 25000 for Foreign Law Firm), guarantee amount and accompanying non-refundable process charges. The registration granted under these Rules shall be valid for a period of five years only. The application for renewal can be made in “Form B” within six months before the expiration of such validity.

Law practice by a foreign lawyer and/or foreign Law Firm, it’s nature and extent thereof.

The Rules also details scope of practice of law by a foreign lawyer and/or foreign Law Firm. It has been provided that Foreign lawyer or Law firm registered under rules shall be entitled to practice law in India in non-litigious matters only, subject to such exceptions, conditions and limitations as are laid down under these Rules. Such a lawyer shall be deemed to be an advocate within the meaning sections 29, 30 and 33 of the Act qua such acts and deeds as are envisaged or permitted to be performed by him under these Rules as a foreign lawyer. However, a foreign Lawyer or Foreign Law Firm shall not be subject to proceedings under Chapter V of the Advocates Act; rather in case of any substantive misconduct, the Bar Council of India may cancel the registration of such Foreign Lawyer or Foreign Law Firm as the case may be. The areas of practice for foreign lawyers and foreign law firms in India shall be determined and laid down by the Bar Council of India. If deemed necessary, the Bar Council of India may consult the Government of India, Ministry of Law and Justice in this regard.

Disciplinary issues – A foreign lawyer or Lawyer associated with a foreign Law Firm registered under these rules shall normally be subject to the same ethical and practice standards laid down under the Advocates Act, 1961 and Rules made there under as are the advocates enrolled under the Act.

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