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The Indian legal market is set to open to UK law firms by the end of July, following a closed-door meeting in London on Thursday comprising core members of the Bar Council of India (BCI), the Bar Council of England and Wales, and the UK’s Law Society.

BCI Chairperson Manan Kumar Mishra said the group will aim to notify and implement rules governing the entry of UK law firms and lawyers into India by the end of July, according to a source close to the matter, who spoke on the condition of anonymity.

Ajit Mishra, founder of the UK-India Legal Partnership, was excited by the news. “This significant move marks a new era of collaboration and market opening exclusively for UK legal professionals. It is indeed a welcoming step and aligns with the spirit of the proposed FTA between India and the UK,” he told ALB.

“The BCI's announcement signifies that the Indian market will be opening exclusively for British law firms and lawyers, not for foreign lawyers generally. UK lawyers and law firms will be allowed to register with the BCI to practice only English laws,” Ajit Mishra added.

The BCI, in March last year, announced the opening of the Indian legal market to foreign law firms and lawyers, including the ability to set up an Indian office providing cross-border advisory for foreign clients.

The BCI also notified changes to the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022.

While both the UK and India delegations said they had made significant progress towards achieving their common goals, the BCI did raise a few concerns regarding the opening up of its market.

Manan Mishra brought up the issue of the presence of international law firms headquartered in the UK using a potential Indian presence to advise on non-UK international work, including allowances for lawyers from non-reciprocating countries.

“British law firms with international offices will be expected to have strict internal policies to ensure their Indian offices are not used to provide non-English law advice. Additionally, non-English lawyers from such British law firms may visit India to meet their clients, but only on a fly-in-fly-out basis, provided they do not exceed the 90-day threshold,” Ajit Mishra explained.

Another concern raised by the British contingent was over the registration fee for foreign firms to set up shop in India. Currently, an international law firm must pay $50,000 to set up an office with an additional $25,000 for each lawyer to be located in India.

This creates a significant cost before commencing operations, posing a major entry barrier for foreign law firms, especially mid-sized ones, to compete in the Indian market.

Law firms in India, which were originally sceptical of such a decision to liberalise the market are now more open to using the reciprocity clause to open UK offices. Many mid-tier Indian firms have been actively looking for best friend relationships and joint ventures with UK firms in the last few months, the anonymous source said.

 

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