Entry of Foreign Firms in India
The concept of foreign firms is not new in
Global economists believe that GATS being inclusive
in nature creates integrated global market. Until recently,
The common law traditions and English language
capability are important assets to the growth of legal sectors. Each year
experiences growth in multinationals and foreign corporations setting up in
More opportunities for budding lawyers: Despite being
situated abroad, these firms hire legal assistants and lawyers when they work in
collaboration with other companies.
Brings boom in economy, through foreign investment
and increases capital market availability.
Gives domestic lawyers access to technological
expertise of such firms
Brings competition in legal profession
Increases scope of International corporate sector
Helps in expertise of project financing and refinancing
of international debts
Low cost service provided in
Despite advantages, the concept of foreign firms
hasn’t been given warm welcome in legal sector. Since these firms target
transaction side of business they have been opposed widely by law firms. The
conflict also includes ethical issues. The risk of ethical breach is more at
bottom as compared to top in professional pyramid. As foreign firms provide
services in accountancy, management etc. in addition to legal, they enter into
partnerships in different fields. Such partnerships pose danger of leaking
confidential information to non lawyer professionals. Foreign firms not only affect clients but
also the lawyers.
If allowed entry in
We may have to agree to their likeliness also. Foreign
firms don’t wish accessing Indian market traditionally served by local Indian
lawyers but their main target is to advice investors in international business
community and that too without becoming member of Bar. It is accepted by law
society that court practice should be restricted to local lawyers and foreign
lawyers should not be allowed unless they re qualify as Indian lawyers. Various
safeguards required by Bar council:
Registration should be made compulsory for all
foreign legal firms.
Written agreement should be entered between foreign
firm and Indian firm in case of formal alliance or joint venture.
Foreign firms should be permitted to employ and share
profits with Indian lawyers.
Indian firms should be allowed to employ foreign
lawyers.
Certain legal areas such as court advocacy and
drawing court documents should be reserved for nationally qualified lawyers.
Persons duly qualified and certified as advocates
should be allowed to call themselves by such title.
Foreign lawyers to practice only after re qualifying
as Indian Advocate or working in alliance with
The cross border deals are definitely providing
benefit to economical growth. As many foreign clients deal with Indian
transactions so such firms want a stronghold for serving these clients by
establishing themselves in
In recent years, the Indian legal profession has
undergone a significant change and has emerging as highly competitive although the
Bar Council of India has prohibited foreign law firms from operating in
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