India's New Legal Rule Stuns Global Business: Are Foreign Lawyers Now Barred?

Author

Simar Singh | Whalesbook News Team

Detailed Coverage:

The Bar Council of India (BCI) introduced amendments in 2025 to its Rules for the Registration and Regulation of Foreign Lawyers and Foreign Law Firms. While the BCI's stated aim was to open up the Indian legal profession, encourage Foreign Direct Investment (FDI), and ultimately benefit Indian lawyers, the outcome has been largely negative. The rules define a 'foreign lawyer' so broadly that it encompasses any individual or entity authorized to practice law in a foreign country, including in-house lawyers employed by companies. This definition fails to distinguish between private practitioners and corporate counsel. Consequently, foreign in-house lawyers wishing to advise their Indian parent or subsidiary companies on matters of law other than Indian law face significant challenges. The 'fly-in, fly-out' (FIFO) exception, meant to simplify temporary visits, requires foreign lawyers to submit a detailed declaration to the BCI. This includes disclosing the nature of proposed legal work, specific legal areas, client details, and the jurisdiction involved. The author argues that such disclosure violates client confidentiality, a critical ethical obligation, and poses a substantial risk for global companies. The penalties for non-compliance are severe, ranging from monetary fines to debarment and potential criminal proceedings. This regulatory burden, far from promoting ease of doing business, effectively discourages foreign in-house lawyers from visiting India to perform their duties, thereby hindering FDI. Impact This news directly impacts the ease of doing business and the inflow of foreign investment into India. Global companies may find it more difficult to operate and expand their Indian operations, potentially affecting economic growth and market sentiment. The uncertainty surrounding these regulations could lead to cautious investment decisions. Difficult Terms: Bar Council of India (BCI): A statutory body that governs and regulates the legal profession in India. Foreign Direct Investment (FDI): An investment made by a company or individual from one country into business interests in another country. In-house Lawyer: A lawyer who is employed directly by a company to provide legal advice for that company. Fly-In, Fly-Out (FIFO): A work arrangement where employees travel to a worksite for a period and then return home. In this context, it refers to foreign lawyers visiting India for specific, temporary legal tasks. Reciprocity: The practice of mutual exchange of benefits or privileges. Here, it refers to India expecting other countries to offer similar conditions to Indian lawyers/firms as India offers to foreign ones. Statutory Body: An organization established by an act of parliament or legislation. Client Confidentiality: The ethical and legal duty of a lawyer to protect private information shared by a client.