Understanding The Implications Of Foreign Firms Being Allowed To Set Up Shop In India

The Bar Council Of India has now opened up the Indian Legal arena to foreign lawyers and foreign law firms as they will now be able to practice foreign laws, international arbitration matters and more under the Bar Council Of India Rules For Registration and Regulation of Foreign Lawyers and Foreign Law Firms In India, 2022. The BCI has said that it would not act as a stumbling block for the Indian lawyers if foreign lawyers are also allowed to practice in India in certain areas of law and it would also act in the benefit of Indian lawyers as the legal profession would grow in India as well. This would be done on a reciprocal basis.

On 19 March, BW Legal World 30 Under 30 Summit was conducted to recognise young talent in the legal fraternity where the first panel discussion was on the topic “Entry Of Foreign Law Firms In India” where several implications of this move were discussed in detail.

There are several changes taking place in the legal ecosystem of India as pointed out by Sudhir Mishra (Founding and Managing Partner, Trust Legal) in the panel discussion, where on one hand over 70,000 lawyers are getting registered across the country as advocates while on the other hand the consulting companies are multiplying. Even though these changes are taking place the legal fraternity is keeping its form belief on a Doordarshan like system where chitrahaar would be broadcasted on one day.

Sameet Gambhir, Vice President (Corp. Law) & Company Secretary, DCM Shriram encouraged the legal fraternity to embrace the move, make use of the plethora of opportunities that it would bring in and take the uncertainties as a challenge.

Amit Kapoor, Joint Managing Partner, JSA, said that this move has been in the making for a long time now and is a positive one but the rules governing the change are still bereft of several details. The speakers emphasised that it would provide opportunities to Indian Legal interns and advocates to get a learning experience while being in their country itself and will also provide guidance if an Indian company or firm wants to set up outside.

Speaker Monika Sharma, Director- Legal and Compliance, Skuad, remarked that whenever a stone is thrown in water there are ripples and hence we have to wait and see how these regulations will turn out to be.

Unicorn startups are increasing in India at an exponential rate and when they need legal advice outside the Indian Jurisdiction they struggle with finding the right advice and have to rely on their alumni networks who have set up their business outside. With this move allowing foreign firm to set up shops in India these startups will have someone to turn to here itself. 

Sridhar Potaraju, AOR, remarked that it is pertinent to note that the Indian litigators are out of the box thinkers and while the legal firms can get busy with their work in respect of these new changes, the litigators can put their mind to curing  any loopholes in these regulations.

Talking about the inclination of companies towards minimising litigation, speakers Birj Kishore Kiradoo, Head- Legal and Compliance, Ofbusiness and Pranav Mehra, Director - Legal, Freshworks remarked in concurrence that the approach is to minimise litigtaion as everyone has had some bad experience in going to courts. Birj Kishore Kiradoo mentioned that in initial stages of the company it is tried to steer clear of litigation while  Pranav Mehra said that the companies prefer arbitration or mediation over litigation.

Conclusively, these changes are welcome and have been long pending for several years. From a business point of view the entry of foreign firms will bring in more exposure, jobs, revenue and openness but since the regulations are still very new we have to wait and see how they will turn out to be.