In a firm reiteration of regulatory boundaries, the Bar Council of India (BCI) has clarified that foreign law firms and legal professionals cannot form or participate in partnership firms within India for the purpose of practicing law or offering legal consultancy. The decision reinforces India’s long-standing restrictions on foreign legal practice under domestic partnership structures.

The clarification comes amid growing interest from international law firms seeking entry into India’s booming legal and business advisory market. Several global entities had reportedly explored tie-ups and joint venture models with Indian partners under the guise of legal process outsourcing (LPO) or business consultancy, raising concerns over circumvention of regulatory norms.

In its latest circular, the BCI stated that while foreign lawyers may be permitted to offer “fly-in, fly-out” advisory services on foreign law, they are not allowed to form Indian partnership firms, nor engage in any structure that implies direct or indirect participation in Indian legal practice.

“Foreign firms cannot operate offices in India, represent clients in Indian courts or tribunals, or enter into local partnership deeds for legal practice,” the BCI stated. “Any such activity will be treated as a violation of the Advocates Act, 1961.”

The move is aimed at protecting the interests of domestic law firms and maintaining ethical and professional standards in Indian legal services. It follows the Supreme Court’s earlier stance that the legal profession in India is reserved exclusively for individuals enrolled with Indian bar councils.

Legal industry bodies have welcomed the clarity, stating that while collaboration on cross-border transactions and advisory mandates is essential, it must occur through permitted channels without compromising the regulatory framework. Experts note that foreign participation may be allowed in the future through carefully crafted rules under mutual recognition arrangements or specific regulatory licenses, but not through conventional Indian partnership models.

For now, the ruling draws a clear line for foreign legal entities, emphasizing that India’s legal market remains closed to foreign firms seeking a foothold through partnership-based entry routes.