Foreign Law Firms Cannot Use Indian Firms to Practice Law Indirectly: BCI Issues Stern Warning, Show-Cause Notices to Global Alliances

“Swiss Vereins, Co-Branding, and Joint Platforms Will Not Shield Unregistered Practice of Law in India”:  In a sweeping move to enforce regulatory discipline across the legal sector, the Bar Council of India (BCI) on October 21, 2025, issued a revised and detailed Press Release warning Indian and foreign law firms, individual advocates, clients, and the public against unauthorized and unregistered legal collaborations between Indian and foreign entities.

The Press Release, which substitutes and supersedes an earlier statement dated August 5, 2025, follows a representation made by BCI before the Delhi High Court on August 21, 2025, in Atul Sharma v. Bar Council of India & Another, W.P. (C) No. 12656/2025. It clarifies the legal position regarding the limits and legality of foreign law firms operating in or with India, especially through mechanisms like Swiss Vereins, strategic alliances, and co-branding models.

“Substance Over Structure – Legal Practice Cannot Be Outsourced to Indian Firms Acting Under Foreign Brands”

The Council noted with grave concern that foreign entities are projecting a unified, cross-border presence in India, often in violation of the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2023 (as amended in 2025).

“Any arrangement that creates a joint platform, uses a unified brand, involves co-branding of legal services, or results in shared client servicing… shall be deemed to be in contravention of the Rules,” the Press Release states.

The practice of law, as reiterated in Bar Council of India v. A.K. Balaji, (2018) 5 SCC 379, extends far beyond court appearances. It includes advisory work, negotiations, document preparation, contract drafting, and other legal services. Any entity — whether foreign firm, network, or association — that enters into alliances where Indian legal services are delivered under a foreign brand, is violating the regulatory framework unless it has proper registration with BCI.

“Legal Work Rendered in India Is Not a Branding Exercise – It Is Practice of Law and Must Be Regulated as Such”

The BCI squarely emphasized that it would not allow foreign law firms to indirectly control Indian legal work through association, branding, or structure, regardless of whether the model is called a ‘referral’, ‘network’, or ‘collaboration’.

“Whether the structure is a Swiss Verein, an exclusive referral model, a consultancy, or a network, if in substance the activity amounts to legal practice in India or from India, it falls within the scope of the Advocates Act, 1961.”

Such arrangements are now under regulatory scrutiny for being de facto attempts to practice Indian law without proper registration.

“No Advocacy or Courtroom Participation, Even in Arbitration, by Foreign Lawyers on Indian Law Issues”

The BCI reiterated its position, also reflected in a Gazette Notification dated May 13, 2025, that foreign lawyers cannot appear before courts, tribunals, or quasi-judicial authorities, nor can they participate in advocacy-related functions in arbitration proceedings if Indian law governs the dispute or evidence is taken on oath.

“Cross-examination and arguments on Indian law issues constitute advocacy and are reserved exclusively for advocates enrolled under the Advocates Act, 1961.”

Even in arbitration proceedings, which are sometimes argued to be outside strict procedural codes, the moment evidence is recorded under oath, or Indian law is at play, foreign lawyers must exit the room, legally speaking.

“Holding Out Indian Firms as Part of Global Law Firms Will Attract Sanctions”

The BCI underlined that if Indian law firms present themselves as members or partners of international firms, using foreign brand identities or group logos, they are in substance enabling foreign law practice in India, and thereby violating the Advocates Act.

“The prohibition applies equally whether the foreign law firm acts directly or whether an Indian firm operates under its head, brand, or group identity.”

BCI made it clear that form cannot defeat substance, and any such “holding out” amounts to impermissible legal practice by foreign firms. The liability for such violations will not only fall on the foreign firm, but also on Indian lawyers and partners involved.

“Professional Misconduct Proceedings to Follow – Show-Cause Notices Already Issued”

The Council confirmed that based on publicly available information, certain Indian and foreign law firms have already been served show-cause notices. These notices require full disclosures, including:

Details of collaboration agreements

Governance models

Financial arrangements

Branding and public representations

Regulatory disclosures made (or not made)

“Failure to comply may result in proceedings under the Advocates Act, 1961… including for professional misconduct.”

Further rounds of show-cause notices are also in preparation. The Council warned that continued operation under co-branded models, unified websites, or shared promotional events may be treated as aggravating factors.

“Press Releases, Social Media Campaigns and Mergers that Project Unified Identity Will Invite Sanctions”

The BCI also addressed increasing trends of law firm launches, LinkedIn campaigns, and ceremonial events where foreign and Indian firms jointly promote themselves as a single entity. These will now be scrutinised under Rule 36 of the BCI Rules, which prohibits advertising and solicitation.

“Announcements of mergers, launches, or combinations that project a single integrated global platform in India will invite scrutiny.”

Lawyers are reminded that public communications must be restricted to basic information such as name, contact details, qualifications, and generic areas of practice.

“Regulation is Liberal, but Only for the Lawful – Entry is Welcome, Indian Law is Not”

The BCI clarified that its regulatory framework is not protectionist, but rather intended to safeguard professional standards.

“The Bar Council of India reiterates that it has adopted a liberalised and transparent regulatory framework for entry of foreign lawyers and firms. They may practice foreign law and international law in India after registration. They may not practice Indian law or engage in litigation.”

This is a clear message: Foreign lawyers are welcome, but only within the defined boundaries — that is, advising on foreign law in non-litigious matters, and only after registration.

A Caution to the Profession and the Public Alike

This updated Press Release, while stopping short of finding any firm or individual guilty, signals a serious compliance crackdown. It reasserts the BCI’s regulatory jurisdiction, and puts both Indian law firms and their global counterparts on notice.

“Persistence with such models may be considered as aggravating factors.”

Firms must now audit websites, review alliances, and restructure promotional strategies to ensure compliance. Clients and the public are advised to verify registration status of any firm claiming foreign ties.

Date of Press Release: 21 October 2025