Government Proposes Power To Regulate Entry Of Foreign Law Firms Through Advocates (Amendment) Bill, 2025
The Central Government has introduced the Advocates (Amendment) Bill, 2025, proposing to grant itself the authority to;
Government Proposes Power To Regulate Entry Of Foreign Law Firms Through Advocates (Amendment) Bill, 2025
The Central Government has introduced the Advocates (Amendment) Bill, 2025, proposing to grant itself the authority to frame rules governing the entry of foreign law firms and foreign lawyers into India.
The draft Bill, currently open for public comments, seeks to amend Section 49A of the Advocates Act by adding a sub-clause that enables the Central Government to create rules specifically addressing the entry of foreign legal entities into the Indian market. The amendment includes the following provision:
"49A. Power of Central Government to make rules. ―(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act including rules with respect to any matter for which the Bar Council of India or a State Bar Council has power to make rules.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for...
...(cc) rules governing the entry of foreign law firms or foreign lawyers in India."
Earlier, the Bar Council of India (BCI) had been leading efforts to allow foreign law firms into India. In March 2023, the BCI introduced the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022, permitting foreign law firms and lawyers to practice foreign law in India based on reciprocity.
However, there has been considerable opposition from various sectors of the Indian legal community. A petition was filed in the Delhi High Court challenging the BCI’s decision, claiming that the BCI does not have the authority under the Advocates Act to permit foreign lawyers to practice law in non-litigious matters.
The petitioners argue that foreign market forces should not dominate the Indian legal profession, as this could undermine the justice system. They also contend that the decision violates the principle of reciprocity, as India does not have reciprocal agreements with other countries allowing their law firms to operate freely in India, which may impact Indian lawyers.
In July, the BCI’s counsel informed the High Court that progress on the case had stalled due to the ongoing petition. While the Court had scheduled a hearing for September 2024, the matter remains unresolved as of now.
