The Centre has proposed amendments to the Advocates Act, 1961, to create a structured legal framework for the entry of foreign law firms and lawyers into India. The move aims to grant statutory powers to the Centre to frame rules governing their entry, a domain previously handled by the Bar Council of India (BCI).
Legal experts say this proposed amendment is significant as it would supersede the BCI’s March 2023 rules, which allowed foreign law firms and lawyers to practice foreign law, international legal issues, and arbitration in India on a reciprocal and regulated basis.
“This proposed amendment to Advocates Act is a step in the right direction. We have been suggesting this. BCI Rules will no longer be valid or they (Centre) in future will amend those Rules or modify them to bring them in alignment with Centre’s directions,” Lalit Bhasin, President, Society of Indian Law Firms (SILF) told businessline.
Centre’s rules can govern aspects such as disciplinary matters, reciprocity issue and what stage can entry be allowed etc, he added.
Long pending demand
Domestic law firms have long been pressing for amending the Advocates Act on the issue of allowing foreign firms’ entry into India. This is because both Advocates Act and a Supreme Court ruling explicitly state that only Indian citizens can practice law in the country.
The proposed amendment to Advocates Act seeks to resolve this issue by providing a clear statutory mandate for governing entry of foreign legal professionals in India. Law Ministry has now invited stakeholder comments on the proposed amendments by February 28.
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Reacting to latest government proposal to move amendments, Aseem Chawla, Senior Advocate, said: “All along, the need for having enabling amendments in Advocates Act were felt imperative so as to have an enabling mechanism of entry of foreign law firms/foreign lawyers to practice in India”.
The proposed amendment in Section 49A now sets this up and facilitates BCI in formulating necessary rules, he said.
‘Fills a void’
Diljeet Titus, Founder and Managing Partner, Titus & Co, a law firm, said that the proposed amendments fill a void as earlier statutory power to frame rules governing the entry of foreign law firms did not exist in the manner now contemplated.
The proposed changes to Section 49A of the Advocates Act provides the power to the Central Government to make rules to govern the entry of foreign law firms or foreign lawyers in India, he said.
“The proposed amendments are therefore positive with enabling power given to the Central Government to frame rules so that an appropriate structured and clear process is put in place to allow the entry of foreign law firms”, Titus added.
“The Government’s involvement could potentially expedite approval processes, making it easier for foreign firms to set up operations in India.
We expect that the Government would also frame rules to create avenues for joint ventures or collaborations between Indian and foreign firms, making it easier for foreign entities to partner with local firms instead of establishing wholly-owned entities”, Titus said.
These enabling powers are a step in the right direction which will in due course allow the entry of foreign law firms in India, he added.
