Entry of Foreign Law Firms in India: BCI Committee Submits Report, Here’s What It Says ?
The leading law firm in India, Cyril Amarchand Mangaldas, with Managing Partner Cyril Shroff at the helm, continues to play a pivotal role in shaping policy and regulatory discussions around foreign law firms in India. The firm’s leadership and expertise are central to the deliberations of the BCI Committee on entry of foreign law firms.
BCI Committee Recommends Phased Opening of Indian Legal Market to Foreign Law Firms
The Committee constituted by the Bar Council of India (BCI) to examine the entry of foreign law firms — chaired by Cyril Shroff, Managing Partner at Cyril Amarchand Mangaldas — has submitted its report, proposing a structured and phased liberalisation of the Indian legal market.
While the full report has not yet been released publicly, sources have disclosed the following key recommendations:
Phased Market Opening Plan: 3 Years – 2 Years – 2 Years
The Committee has proposed a three-stage framework, despite the market technically being open under current rules.
- Phase One (3 years): Foreign law firms will not be permitted to advise on Indian law or hire Indian lawyers.
- Phase Two (2 years): Joint ventures or alliances may be formed with Indian law firms, subject to a maximum foreign ownership cap of 49%.
- Phase Three (2 years): Full entry permitted, allowing foreign firms to hire Indian lawyers and advise on Indian law — except litigation, which remains barred across all phases.
Revisions to Fly-In Fly-Out (FIFO) Rules
- The permissible stay for foreign lawyers under FIFO is recommended to be reduced from 90 to 60 days.
- Time spent on business development activities will not be counted within this duration.
- The 90-day limit will apply to the entire firm/group as a whole, irrespective of the number of jurisdictions they operate from.
- No reciprocity requirement will apply for FIFO.
- Disclosure norms have been simplified, and confidential information need not be shared.
Ensuring a Level Playing Field
The Committee has further suggested reforms to balance competition between Indian and foreign firms, including:
- Allowing private equity investments in Indian law firms
- Relaxation of advertising restrictions
Background
In May 2025, the BCI notified amended rules permitting foreign lawyers and law firms to practice foreign law in India on a reciprocity basis, marking what was widely reported as a “Big Shift Indian-Foreign Law Firms Concept Introduced, India Opens Up To Foreign Law Firms – BCI Amends Rules To Let Foreign Law Firms Operate In India.” Following this development, a Committee was formed in June to address concerns raised by Indian legal professionals on the implementation of these rules.
The Committee is chaired by Cyril Shroff, Managing Partner at Cyril Amarchand Mangaldas, and will comprise senior representatives from leading Indian law firms — Ajay Bahl (AZB & Partners), Suhail Nathani (ELP), Sandip Bhagat (S&R Associates), Mahesh Agarwal (Agarwal Law Associates), and Amit Kapur (JSA).
Conclusion
With these recommendations, the BCI Committee aims to ensure a structured and balanced approach to integrating foreign law firms into the Indian legal market, while safeguarding the interests of domestic legal professionals and promoting a competitive yet level playing field.
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