Legal services should have been included in the recent Free Trade Agreement (FTA) between India and the UK.
Foreign lawyers gain limited access to India’s legal market under BCI’s 2025 rules amid regulatory and legal challenges (Photo: File)
The failure to include legal services in the recent Free Trade Agreement (FTA) between India and the UK is a missed opportunity for both economies in terms of market access for lawyers. The Law Society of England and Wales views it as a deliberate exclusion that exposes the complex realities of India’s guarded legal market.
The UK is the world’s second largest legal services provider. Legal services contribute £57.8 billion annually to the economy. The sector supports around 526,000 people in employment, amounting to 1.6 per cent of the UK workforce.
India is set to become the world’s third largest economy by 2050, and, according to the UK government, the trade deal between the two countries had the potential to almost double UK exports to India.
Many UK law firms have India desks with key expertise in the region and are highly active on cross-border legal work involving Indian parties. Hopes for an Indian market opening rose in 2023 when the Bar Council of India (BCI) published draft rules on the admittance of foreign lawyers. However, these were challenged by the Society of Indian Law Firms. India still restricts the ability of foreign lawyers to form an establishment in the country.
The entry of foreign law firms raises broader issues such as permanent establishment status and legal structures, and these require careful deliberation across multiple government ministries. This cautious approach reflects deeper concerns about preserving local legal talent and maintaining regulatory control over a profession central to India’s governance structure.
Owing to a common law system based on English law, coupled with its burgeoning economy, India is extremely attractive for foreign lawyers, especially those from England and Wales, for them to be able to deliver their legal services in India.
At the outset, in an attempt to balance the opening up of the legal sector to foreign lawyers and to protect the interests of domestic lawyers, BCI published a set of rules in 2022. The salient points in the rules include permitting foreign lawyers and law firms to practice in India on a reciprocal basis, but only for non-litigious matters such as foreign law, international law, and arbitration. They are restricted from appearing before Indian courts or tribunals and are prohibited from practising Indian law or handling activities such as conveyancing or title investigation. Foreign lawyers must register with BCI, which requires obtaining a No Objection Certificate (NOC) from both the Ministry of Law and Justice and the Ministry of External Affairs.
The Law Society has been engaging with BCI as well as the Indian Ministry of Law and Justice for more than two decades, for opening up of the Indian legal sector. This came to fruition in March 2023, when BCI made a historic announcement to allow for the establishment of foreign lawyers and law firms in India and published a new set of rules.
In June 2023, in light of BCI’s March 2023 rules, a Memorandum of Understanding (MoU) was signed by BCI, the Law Society of England and Wales, and the Bar Council of England and Wales, which was aimed at strengthening cooperation and facilitating legal exchange. The MoU also aims at facilitating a healthy mutual exchange of ideas, learning, and training for the legal fraternity of both jurisdictions. While the relaxation does not permit foreign lawyers to argue before courts or tribunals, it is still a significant shift from the previous approach, which permitted such professionals to merely give legal advice on international matters to their Indian clients or hold arbitration proceedings.
But the implementation is still pending due to ongoing legal challenges and the need for regulatory clarification. In essence, the MoU was a modest step in the right direction, but work remains to be done to fully clarify and implement the details of foreign legal practice in India.
Several developments have taken place since signing of the MoU in 2023, and following this, a legal challenge to BCI’s regulations was filed in the Delhi High Court. Indian advocates filed a petition arguing BCI lacks the authority to permit foreign lawyers to practise in non-litigious matters, as it could harm the interests of Indian lawyers and exceed the powers granted to it by the Advocates Act of 1961.
In light of this, BCI amended its 2022 rules on 13 May 2025 to allow foreign lawyers and law firms to practise in India under specific and restricted conditions. The changes to these regulations aim to clarify the framework under which foreign lawyers and law firms can operate. In theory, this will permit foreign legal professionals to engage in non-litigious matters after registering with the BCI. In particular, this could open up work in areas such as arbitration, intellectual property, and international legal matters. Under the revised framework, foreign legal professionals are allowed to offer advisory services in foreign and international law, particularly in areas such as cross-border transactions and international arbitration, while restrictions on practicing Indian law and engaging in litigation remain in place. The rules also include a “fly-in, fly-out” provision allowing foreign lawyers temporary entry for legal advice for up to 60 days a year.
At the core of the newly established legal provisions lies the principle of reciprocity. The regulatory framework is designed to balance the goals of international legal integration with the protection of Indian legal professionals’ interests. However, there are still extensive restrictions, and since the previous similar announcement ended up being litigated in the courts, it needs to be seen how this will work in practice. Even with these caveats, it is still a welcome development.
The legal challenge, which began in 2024, has led to uncertainty regarding BCI’s revised rules and has been an impediment to the full implementation of the rules. Furthermore, this has prompted BCI to issue new notices in response to court orders.
Significant progress has been made in formalising the rules for market access, though actual implementation remains contingent on navigating legal challenges within India.
A notable meeting occurred in June 2024, where potential amendments to the rules and next steps were discussed. The Law Society of England and Wales hosted the Bar Council of India on June 27, 2024. The Bar Council of England and Wales also participated in these discussions. Potential amendments to the rules and regulations of March 2023 were discussed, as well as next steps in their implementation in light of the pending challenge in the Delhi High Court.
In October 2025, BCI has also warned on alleged unauthorised collaborations or combinations between Indian and foreign law firms. In a press release on the matter, they have impressed that it had noted several instances of Indian and foreign law firms presenting themselves as unified global legal service platforms through Swiss Vereins, strategic alliances, exclusive referral models, or joint branding. Such structures, it said, mislead clients and contravene the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2023 (as amended in 2025), which mandate registration, disclosure, and ethical compliance before any such collaboration can commence.
Citing the Supreme Court’s decision in Bar Council of India v. AK Balaji & Ors, the BCI reiterated that foreign law firms “cannot do indirectly what they cannot do directly.” The judgment clarified that the “practice of law” includes not only courtroom appearances but also legal advice, contract drafting, and negotiation. Hence, any arrangement that in substance constitutes the practice of Indian law, regardless of its form, is governed by the Advocates Act of 1961, and falls under BCI’s regulatory jurisdiction, the release stated.
It appears that whilst BCI would want to liberalise the legal sector to foreign lawyers and law firms, they have faced stiff opposition from Indian advocates, which has left the implementation of rules drafted by the BCI in 2022 and amended in 2025 in limbo. But by formalising the entry of foreign lawyers and law firms into the Indian market through a reciprocal framework, BCI has clarified the scope of permissible activities and reaffirmed that the practice of Indian law remains the exclusive domain of Indian advocates.
India is actively working to establish itself as a global arbitration hub. It is establishing institutions like the India International Arbitration Centre (IIAC) in Delhi. It is also implementing legislative reforms to improve its dispute resolution framework. To bolster this, it would need to open the legal sector to foreign lawyers, especially those specialising in arbitration.
India must act decisively to liberalise its legal sector, taking phased steps if required, to ensure it achieves true global competitiveness.
Kunal Dua, Advocate, Called to the Bar of England and Wales 2021.
