The Hindu Business Line : Limited liability partnerships Bill not enough for foreign law firms

New Delhi May 27 While the proposed legislation on limited liability partnerships (LLPs) could pave the way for foreign professionals to provide services in India, legal services could still be out of bounds for such foreign LLPs or even domestic LLPs with a non-resident partner.

Legal experts in the country contend that the passage of the LLP law would not in itself mean that foreign law firms could open offices here, but admit that this could be a big step towards the opening up of the legal services market to foreign law firms

"The proposed LLP law is a procedural law. The Advocates Act (main legislation) governing legal profession explicitly prohibits practice of law by non-citizens," Mr Lalit Bhasin, President of Society of Indian Law Firms (SILF) told Business Line, when asked whether passage of LLP would lead to foreign law firms setting up local operations here.

He said that foreign law firms could not provide ancillary legal services till the appropriate amendments were carried out to the Advocates Act and the Bar Council of India rules. The domestic legal fraternity is opposed to the entry of foreign legal firms even for providing ancillary services.

The LLP Bill provides that LLPs can be formed for any trade, profession or occupation. It also seeks to allow LLPs established abroad to operate and conduct business in India.

Besides, foreign nationals would be allowed to enter into partnerships through LLPs. The proposed LLP Bill stipulates that at least one partner should be resident of India.

Foreign law firms, especially those from the UK, have been lobbying hard with Indian lawmakers for opening up the legal services market. They contend that opening up of the legal services market is in India's interest, especially when the country is looking for about $350 billion of investments in the infrastructure sector.

They also have made it clear that foreign lawyers are not looking at making appearances before the Court, but to work behind the scenes on mergers and acquisitions, deals and transactions between the two countries.