Updates on Foreign Lawyers, Labour Laws, and FCRA Compliance in India

A Changing Legal Landscape: What Foreign Lawyers, Indian Employers, and NGOs Must Now Comply With

India's legal and regulatory framework is in the midst of a quiet but consequential overhaul. From how foreign lawyers can engage with clients in India, to the labour rights of audit professionals, and the rules around foreign contributions to NGOs—May and July 2025 have seen a series of compliance shifts that stakeholders can’t afford to overlook.

Foreign Lawyers in India: The Doors Open, But Only Slightly

In a move that has been long-debated but finally formalised, the Bar Council of India (BCI) in May 2025 laid out new rules for foreign law firms and legal professionals operating in India.

What’s Allowed—and What’s Not

Foreign lawyers are now permitted to offer advice on foreign law, international law, and matters involving international commercial arbitration. But there’s a hard line: they cannot practice Indian law or appear before Indian courts, tribunals, or statutory authorities. Those privileges remain firmly reserved for lawyers enrolled with the BCI.

Strict Registration Mandate

Before doing any business in India, foreign legal entities must register with the BCI. And the bar is not low. Among the required documents:

A No-Objection Certificate from both the Ministry of Law & Justice and the Ministry of External Affairs.
Proof of foreign qualifications and a “good standing” certificate from their home jurisdiction.
Evidence of reciprocal access—meaning Indian lawyers must also be allowed to practice in that foreign country.

They must also file annual declarations with the BCI, disclosing any disciplinary history or changes in their legal status abroad.

Short Visits? There’s a Route for That Too

A “fly-in, fly-out” (FIFO) route exists for lawyers coming in for brief assignments. They can advise clients for up to 60 days in a calendar year, but cannot establish any permanent office or repeat presence. This route is restricted to advisory work on foreign law only, and even then, advance notice must be submitted to the BCI.

The registration itself is valid for five years, after which it must be renewed with full documentation and compliance history.

The message from BCI is clear: foreign participation is welcome, but only within tightly controlled bounds.

EY India in the Dock: Labour Violations and a Tragic Wake-Up Call

In July 2024, the sudden death of Anna Sebastian Perayil, a young audit executive at EY India’s Pune office, cast a harsh spotlight on employee welfare and legal compliance at corporate offices.

Investigations unearthed a glaring violation—the office had been operating without a valid Shops and Establishments Act license since 2007.

Why That Matters

This license isn’t just a formality. It governs critical welfare parameters such as working hours, wages, leave policies, and health and safety standards. Its absence could amount to serious legal breach, especially if linked to an employee’s death.

As per Maharashtra law, workplaces are restricted to a 9-hour daily cap and 48-hour weekly limit. Overstepping these norms without a valid permit can trigger hefty penalties—up to ₹5 lakh—or in grave cases, even prosecution of senior management.

Currently, both the state labour department and the National Human Rights Commission are examining records of employee hours, internal policies, and whether there was excessive work pressure involved.

The case underscores a hard truth for India Inc: ignoring labour compliance is no longer a private risk—it’s a public, and potentially criminal, matter.

FCRA: The Gateway to Foreign Funds for Indian NGOs

For NGOs and charitable trusts in India, receiving overseas funds isn’t as easy as just setting up a bank account. The Foreign Contribution (Regulation) Act, 2010—commonly known as FCRA—lays down a strict roadmap for anyone hoping to legally accept foreign donations.

Step-by-Step: Getting It Right

Register on NGO Darpan: This government portal gives NGOs a unique ID required for further FCRA procedures.
Create an Account on the FCRA Portal: This is where all applications, forms, and filings will happen.
Choose the Right Form:
- FC-3A for full registration.
- FC-3B for prior permission (e.g., for a one-off project or donor).
- FC-3C to renew an existing license.
- FC-4 for annual reporting.
Open a Dedicated Bank Account: All foreign funds must flow through a specific FCRA-linked account at SBI’s New Delhi Main Branch.
Submit Required Documents:
- Trust or society registration papers.
- Memorandum of Association (MoA).
- Audited financials and key personnel details.
- Declaration of compliance with Indian laws.
Pay the Fee (₹10,000) and Apply.

Once approved, the registration remains valid for five years. But NGOs must remember to submit their FC-4 annual return without fail—non-compliance can result in suspension, cancellation, or worse, criminal charges.

A High-Profile Approval: The Dalai Lama Charitable Trust

In a significant move, the Ministry of Home Affairs recently granted FCRA registration to the ‘His Holiness the Dalai Lama Charitable Trust’. The decision enables the trust to lawfully receive foreign contributions for religious and charitable purposes, signalling that the government continues to permit sensitive organisations access—provided compliance is watertight.

Why All This Matters

Whether it’s a global law firm trying to enter India, a corporate office managing long work hours, or a grassroots NGO relying on foreign donations—the rules of the game have changed.

India’s regulatory agencies are making it clear that transparency, compliance, and documentation aren’t just expected—they’re being enforced. And the cost of ignoring them? Reputational damage, legal penalties, and in some cases, irreversible loss.

The country’s message to all stakeholders—foreign and domestic—is simple: play by the book, or don’t play at all.