The accounting body is formulating new guidelines for Indian accounting firms in expanding their global presence. The institute’s objective is to foster the development of larger firms capable of competing on an international scale. To facilitate this, ICAI is streamlining merger regulations and relaxing restrictions on advertising.
The Institute of Chartered Accountants of India (ICAI), the largest accounting body in the world, is all set to finalise international networking guidelines for Indian chartered accountant (CA) firms within this fiscal year, reported Press Trust of India (PTI).
ICAI President Ranjeet Kumar Agarwal emphasized the accounting body’s dedication to developing large domestic CA firms that can compete on an international level, according to the report.
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Currently, Indian chartered accountant firms function without established guidelines for global networking. The ICAI, which has a membership exceeding 400,000, is actively working on initiatives to establish India as a premier destination for accounting and auditing services worldwide. Agarwal detailed the institute’s approach to expanding the capabilities of Indian CA firms and improving their visibility on the global stage.
The institute has already initiated various strategies aimed at promoting the aggregation of CA firms. Additionally, the ICAI is advocating for the relaxation of existing regulations that restrict chartered accountants from advertising and seeking clients. To implement these changes, an amendment to the Chartered Accountants Act of 1949 is required, as stated by Agarwal. Once the amendments are finalized, they will be presented to the government.
Earlier in July, the Corporate Affairs Ministry (MCA) secretary Manoj Govil had discussed with the ICAI the roadmap for realising the ambition of creating a global-sized network of Indian CA firms on the lines of Big Four or Big Five in the auditing and accounting world.
At a meeting between Govil and the ICAI members in Delhi, the challenges faced by Indian CA firms in “aggregation of firms” were also discussed.
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The Government wants Indian firms to grow big, but how to grow big is a major challenge given several constraints.
The meeting assumes significance as in July 2017, Prime Minister Narendra Modi, while speaking at the Chartered Accountants Day event, called for creating four big Indian accounting firms that are counted among the world’s Big-8.
India is home to approximately 96,000 CA firms, employing around 160,000 practicing CAs. Among these, roughly 75,000 firms operate as sole proprietorships. The majority of these firms are small in scale, and even seven years after PM Modi’s call to action, progress in this area has been limited.
