ICAI approves Draft for Indian CA Firms to Partner with Foreign Accounting Networks

The draft regulation lays down some structured steps for how these partnerships should work. Indian CA firms looking to tie up with global players will have to register with ICAI.

The Institute of Chartered Accountants of India (ICAI) has approved a draft policy that could soon allow Indian Chartered Accountant firms to enter into formal partnerships with foreign accounting networks that are already working in the country. The idea is to help Indian CA firms step up and compete globally, something the government’s been trying to push for a while now.

The draft regulation lays down some structured steps for how these partnerships should work. Indian CA firms looking to tie up with global players will have to register with ICAI. Plus, the draft says that every such firm will need to appoint a senior partner as a nodal officer, who will basically ensure everything is in line with ICAI’s rules. Before the approval of the draft, there was no official system to manage partnerships.

Firms to share yearly disclosure 

To make sure everything stays transparent, ICAI will also be asking these firms to file yearly disclosures. The disclosure would include ownership and shareholding details along with financial statements, names and registration numbers of firms. Firms must follow ICAI’s ethical and compliance codes even if it is a part of an international group. 

Calling the move a big milestone for CAs, ICAI President Charanjot Singh Nanda said, “This move is about taking Indian firms to a higher level. Now, our professionals can operate at world-class standards with access to global tools and networks." 

Draft Official Framework likely in July 2025

It must be noted that ICAI is yet to finalise the draft rules. ICAI is planning to open up consultations with various stakeholders soon. Based on feedback, the official framework is expected to be announced in July 2025. This change comes right after ICAI teamed up with SEBI in early May to tackle corporate fraud. It seems like ICAI’s really working to make the industry cleaner, more reliable, and globally competitive.

Benefits for CA Firms

The policy matters for the global reach of the CA firms with structured guidelines, avoiding confusion in the partnerships. Clear rules would also provide trust and transparency. The draft also provides an opportunity to attract foreign clients. The new policy will also help the firms use international expertise for Indian assignments. 

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