ICAI prepares reforms for creating larger accounting firm networks; proposals expected in two months

India’s national professional accounting body plans proposing changes which allow setting up larger firms in the coming two months, council members have said. The suggestions to the centre will include recognising aggregation structures, enabling capital infusion into Indian accounting firms.

Institute of Chartered Accountants of India (ICAI) is preparing these reforms aimed at helping domestic firms scale up and compete internationally. The proposals include amendments to the Chartered Accountants Act for measured deregulation of non-assurance services, providing greater flexibility and a level playing field for CAs in consultancy and advisory work.

“We can say ICAI proposal will be ready in the next two months,” an ICAI official told ET, adding a decision on these suggestions will be taken by the Ministry of Corporate Affairs and subsequently the parliament if the act is amended.


ICAI also plans to revise its 2021 networking guidelines. The expanded framework would allow networks to onboard multidisciplinary entities. These include company secretaries, cost accountants, advocates, engineers, architects and actuaries, alongside ICAI-registered multidisciplinary partnerships and other professional entities.

Another proposal is to revise the 2006 guidelines governing practice in corporate form. The objective is to facilitate participation by professionals regulated under respective laws - including company secretaries, cost accountants, actuaries, engineers, architects, lawyers and management professionals. This aims widening expertise and service capabilities and creating firms of greater institutional scale.

The institute also plans ‘CA Setu’, a digital platform intended to connect chartered accountants and CA firms with opportunities across mergers, networking, LLP aggregation, referrals, specialisation and diversification. ICAI sees the platform as a digitally connected ecosystem for professional collaboration and consolidation.

A broader set of policy recommendations seeks formal recognition for aggregation structures, infrastructure support and capital infusion for Indian CA firms, and the removal of barriers faced by accountants undertaking government consulting assignments. Technology enablement should be treated as a national priority, ICAI proposes.