22 ASIAN LEGAL BUSINESS – MARCH 2024 WWW.LEGALBUSINESSONLINE.COM CROSS-BORDER INVESTMENT and specialised services. As these collaborations deepen, we are witnessing the emergence of specific new branches of legal work directly linked to these international partnerships. Key among these are legal frameworks and advisory surrounding cryptocurrencies, 5G, blockchain, quant computing, data privacy, and artificial intelligence,” Paul says. “Blockchain’s transformative potential in finance, supply chain management, and beyond, necessitates a legal framework that can address its unique challenges and opportunities. For India and Japan, this represents an area ripe for collaboration, where harmonising legal standards and fostering bilateral legal expertise in blockchain could facilitate safer and more efficient cross-border transactions,” adds Paul. From a Japanese firm’s perspective, the increase in demand is directly a result of increasing business operations in India and vice versa. “Apart from the traditional area of corporate law, which includes M&A and JVs, there is increased demand from Japanese companies for regular support in corporate secretarial matters, routine business contracts, business licensing and day-to-day compliance. For Indian companies operating in Japan, it is the Human Resources sector followed by business contracts,” Jejurkar of A&S explains. Apart from this, SNG & Partners, which recently launched a Japan desk, says that in the firm’s experience of working with Japanese clients, the latter look for more than simply legal advice. “What the Japanese companies are looking for is hand-holding and correct guidance. Japanese people are very professional and thorough in their work and believe in building long-term relationships. They expect their lawyers to also act as strategic business advisors apart from representing them in legal matters,” says SNG’s managing partner Rajesh Gupta. There has also been a rise in collaborative exchange programs between Indian and Japanese law firms to understand cultural and language touchpoints better. “In order to further enhance legal cooperation on complex business transactions between Indian and Japanese entities, and to serve our Japanese clients in a more strategic and focussed manner, there are lawyers exchange programmes whereby various Japanese law firms send their lawyers to our firm on a secondment basis, and vice versa, we send our lawyers to these Japanese law firms on secondment basis,” Pandey at SAM explains. Paul at Luthra adds, “We understand the significance of fostering collaborative relationships and have actively been engaging in knowledge exchange initiatives by regularly organising webinars, seminars, and conferences that serve as platforms for in-depth discussions, the sharing of valuable insights, and the cultivation of meaningful relationships with our Japanese counterparts.” Luthra also recently participated in an exchange program with a Japanese firm where the lawyers of both firms, on a reciprocal basis, would have the opportunity to immerse themselves in the legal environment of the respective jurisdictions, gaining practical experience and insights that enrich their expertise, Paul explains. WAIT AND WATCH Despite this vast economic potential, and law firms on both sides of the map investing heavily in growing their India/ Japan desks, there have been few firms that have taken the step of setting up shop in the other nation. Many Japanese firms, including Mori Hamada & Matsumoto, Nagashima Ohno & Tsunematsu, Aderson Mori & Tomotsune, Nishimura & Asahi, Atsumi & Sakai, Kitahama Partners and TMI Associates, have a dedicated India practice but no immediate plans of setting up shop in the country. TNY Legal became the first Japanese firm to announce an India office launch last year, following the opening of the legal market by the Bar Council of India. But, this has not served as a precedent in getting more Japanese firms to the sub-continent. Jejurkar chalks this down to a cautious approach by the Japanese, given the lack of regulatory certainty around Indian laws allowing law firms to enter the market. The decision has also been challenged in the courts, and firms are taking a “wait-and-watch” approach before they take any concrete steps. “A Japanese firm would like to support the businesses operating in India by having a local presence. However, in the absence of notified regulations by the Government of India, it is still in a waitand-watch mode,” Jejurkar explains. Paul explains that while there is clear economic incentive for Japanese law firms to set up shop in India, “to further facilitate and enhance the collaboration between Indian and foreign law firms, additional regulatory adjustments and clarifications might be necessary.” “Expanding the scope of permissible legal work to include more areas of non-litigious matters may be evaluated by the regulator,” Paul says. “There is increased demand from Japanese companies for regular support in corporate secretarial matters, routine business contracts, business licensing and day-to-day compliance. For Indian companies operating in Japan, it is the Human Resources sector followed by business contracts.” — Amit Jejurkar, Atsumi & Sakai
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