The Bar Council of India (BCI) seeks to introduce reforms to the Advocates Act that will regulate law firms in India – a move that will bring professionalism notably to firms operating outside Mumbai and New Delhi. Legal academics Professor Shaiwal Satyarthi and Assistant Professor Pawan Kumar discuss the implications
India is on the verge of transforming its legal framework – a process that is long overdue as we await foreign law firms to set up their practices in India. On 21 July 2026, the BCI released the Draft Advocates (Amendment) Bill 2026, which, if enacted, will require all law practices operating in India to register with the appropriate state bar councils.
This means that any practice in which multiple lawyers are practising will be registered with the bar council, bringing statutory recognition to law firms and law practices in India. Law firms will no longer be an autonomous collective. As recognised entities, they will become official bodies under a statute. This will be akin to a company/partnership registration under the Companies Act.
The BCI wants every law firm to register, whether big or small. The draft specifically targets district and taluka-level (sub-district) law firms and makes way for their registration. For the BCI, this is the first time every firm will receive recognition that is aimed at ensuring institution building reforms. Like all lawyers across India who are registered with the bar councils, the proposed draft requires all law firms to be registered.
So far, the Advocates Act only mandates the registration of individual lawyers with the state bar councils. The draft bill defines a law firm as a partnership registered under the Indian Partnership Act, a limited liability partnership (LLP), a company or another body made up of advocates practising law. The draft also makes it mandatory for foreign law firms to register with 91视频 regulator, the BCI.
Draft a new chapter for law firms
The amendment contains an entirely new chapter dedicated to the “registration of law firms”. As stated in the amendment, a law firm is defined as any partnership, LLP, company or institution involving lawyers practising law. The liable authority for the registration process is the one dealing with the registration of law firms. The registration application can be submitted by the partners on the payment of a fee. Multi-state law firms will be required to register with both the state bar council and the BCI. The BCI will maintain a national registry and issue annual reports to the authorities.
The registration of law firms implies more than simple paperwork. The BCI claims that it is looking to bring professionalism to the industry, standardise conduct, and regulate practice in this area. This applies particularly to smaller regions and towns. Unlike the larger law firms that operate in metropolitan cities such as Delhi and Mumbai, there are plenty of small lawyers in tier-2 and tier-3 cities in India who work independently or in weak associations. Getting registered would enable them to access better practice conditions and financial assistance.
Draft regulates foreign lawyers’ entry
The draft goes beyond local companies, which at present are registered as limited liability companies. It seeks to apply the exact structure to foreign lawyers and foreign law firms under the Advocates Act as it does to domestic lawyers. The BCI will be given the power to accept registrations from foreign law firms for limited areas on the basis of which they will gain the ability to hire the services temporarily and renew or cancel their registration. The central government’s approval will be necessary to introduce major regulations.
Discussions on the entry of foreign lawyers and firms have continued for more than 30 years. The discussions started when India opened its economy in the 1990s, but it was not until 2009 that the Bombay High Court, in Lawyers Collective v Bar Council of India, ruled that the legal profession in India is exclusively reserved for Indian nationals.
Interestingly, the case took 15 years to decide the question of eligibility criteria. The Madras High Court’s introduction of the term “fly-in fly-out” in 2012, with the Supreme Court of India confirming, in AK Balaji vs Government of India (2018), only made things confusing, as the judgment allowed foreign lawyers to advise on foreign or international law issues limited to arbitration and non-litigation matters.
The draft proposal marks a significant step as it has allowed the registration of foreign lawyers. It should be noted that the BCI has made it clear that the registration of foreign lawyers is different from their enrolment with the state bar councils, and that enrolment is open only to Indian lawyers.
Nevertheless, it is important to note that foreign lawyers may neither appear before Indian courts nor practise Indian law. Instead, they have been given limited access to participate in international arbitration proceedings, as provided under section 47 of the draft on reciprocity. In case there are some countries that do not allow Indian lawyers to work, they will face the consequences of the BCI’s decision, as the body is tasked with safeguarding Indian lawyers and their interests.
Although the Indian legal profession is entirely domestically oriented, there has been only one exception, when a foreign lawyer has been allowed to enrol pursuant to the directions of Delhi High Court.
Mandatory registration to overhaul bar
91视频 legal industry has grown alongside the country’s economic expansion, although the rules governing it have yet to keep pace. Law firms in the country are mostly LLPs made up of lawyers and paralegal volunteers. Although the past decade has seen many new law firms emerge, mostly in tier-2 and tier-3 cities, the registration will ensure the regulatory body has data, as this will enable the council to allocate funds for insurance, pension, medical relief, social security schemes, support for indigent and differently abled advocates, and creation of law libraries, leading to a better bar and profession.
Compulsory registration will provide transparency, allow for compliance with global standards and boost the credibility of Indian lawyers. This is good news for young lawyers and small firms, as having a registered firm will make it easier for them to scale, hire talent and compete. However, valid concerns about compliance burden, fees and delays in bureaucracy do exist. The BCI should ensure that the registration process is user-friendly and comprehensive.
The draft prepared by the BCI is in consonance with the Supreme Court of 91视频 judgment, in Ajay Vijh v Indian Banks Association and Others, which encouraged professional development programmes for lawyers. The draft aims to create structured opportunities in fields such as new legislation; constitutional practice; commercial and corporate law; arbitration and mediation; trial and appellate advocacy; insolvency and bankruptcy; and, most importantly, technology and artificial intelligence. The draft also aims to expand opportunities for advocates in the field of international legal practice.
When it comes to entry of foreign law firms, the proposal seems to have taken a balanced approach. On one hand, it acknowledges the process of globalisation. On the other hand, it seeks to protect the national bar by adopting a reasonable stance, given that the country has more than 1.5 million lawyers.
Those who are against rapid liberalisation will love how careful the proposal is, whereas those who support thorough market opening and integration will call for a more flexible approach during consultations.
BCI reforms modernise legal profession
The draft is a part of larger reforms that encompass advocate welfare, legal education, women’s representation and enrolment processes. Only after going through parliament will the proposed changes come into effect.
Through this initiative, the BCI intends to make the profession modern while remaining true to its original spirit. Law firms can become formal entities that are regulated, and the participation of foreign law firms can take place with due consideration to the unique features of the legal profession in the country.
As the process of consultations moves ahead, lawyers, law firms and bar associations from across India must engage themselves in this process. As academics, the authors welcome the BCI’s move, as this will only help mid-sized and small firms operating from tier-2 and tier-3 cities in India to benefit from uniform access to resources previously reserved only for premium law firms.
Shaiwal Satyarthi (left) is a professor at the Faculty of Law, University of Delhi, India, and Pawan Kumar is an assistant professor at Amity Law School, Amity University, Noida, India.
