The concept of foreign firms is not new in India. These firms get exposure from such arrangement which proves to be advantageous to them as well as to our nation. India signed General Agreement on Trade in Services (GATS) in 1994 and experienced drastic changes in trends in an attempt to open up market for foreign firms as well as lawyers in 2008. However, it didn’t materialize.

Global economists believe that GATS being inclusive in nature creates integrated global market. Until recently, India didn’t recognize role of advisory legal services in attracting foreign investment. However, it is predicted that India may become one of the largest legal centers along with London and New York in 21^st century.

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 India. Their transactions are governed by Indian law. As these firms are not fully conversant with Indian legislations, they require assistance of lawyers practicing in India. Various advantages of foreign firms are:

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 India is the major driving force for outsourcing. Indian legal system being a valuable exposure source is a plus point for firms and this helps in creating more professional and flexible legal system.

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 India, various amendments in rules and regulations have to be made by Bar Council of India. They make seek license for full time and regular practice which will prejudice interests of Indian lawyers. In addition to it, immigration and citizenship laws shall have to be applied and for those entering in partnership with nation’s law firms it would be easy to practice without any scrutiny from organized legal profession.

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 India based law firm.

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 India. The entry of foreign firms doesn’t pose any danger till the principles of fairness, professional responsibility, transparency and flexibility are met. Thus a uniform code of conduct should be reviewed to bring International Legal Practice in scenario. Being problematic, the concept of “single Window Services” i.e. providing multi services should be checked.

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 India but its high time that taking the advantages in consideration and balancing them with interests of Indian lawyers, we should accept them.