Global majors line up to establish a foothold in India

NEW DELHI: Global law biggies Baker & McKenzie and White & Case are in the process of establishing an India presence. According to sources, the US-based law firms have initiated talks with a host of Indian counterparts for possible informal tie-ups in the form of client referral arrangements to establish a foothold in the country.

Since the Bar Council of India (BCI) prohibits the entry of foreign law firms in India, partnerships between foreign and Indian law firms can only be in the form client referral arrangements. Under this both parties get to refer work to each other when there is a demand for India-related advice from international clients. Apart from client referrals, these tie-ups involve joint training, consultation and marketing for the firms. However, there is no profit sharing arrangement.

Foreign law firms which already have established informal tie-ups with Indian firms are Allen & Overy, Jones Day and Linklaters, among others. They have client referral arrangements with TriLegal Partners, P&A Law offices and Talwar Thakore & Associates, respectively. According to industry experts, foreign majors are increasingly seeking to position themselves ahead of any possible future liberalisation of the Indian legal market. Once the market opens, global firms which have already done their preliminary groundwork in India and have established their presence through informal tie-ups will be in a better position to expand their operation.

Baker & McKenzie and White & Case are US-based law firms which have presence in over across 38 and 25 countries, respectively. They employ over 3,000 lawyers globally. The entry of foreign law firms have boosted the average salaries of corporate lawyers in India. Salaries in law firms increased significantly by about 50% in the last few years.