The ICAI has approved a draft regulatory framework to allow domestic CA firms to formally tie up with global accounting firms said by the president Charanjot Singh Nanda.
Purpose
The move is aimed at enabling local entities to gain scale, in sync with the Centre’s vision of creating large home-grown accounting firms, he told ET.
Registration Required
CA firms who are already affiliated or planning to tie up with foreign entities must register with ICAI.
Nodal Officer
A senior member must be appointed as a nodal officer to ensure compliance with local rules and ethics.
Annual filings
Such firms will have to submit their names, registration details and changes in constitution with the ICAI. They will also have to file their annual returns with the institute.
Compliance and Ethical Standards
Even if a firm is part of a global network, it will be required to comply with Indian audit rules and ethical standards as set by the ICAI.
Monitoring of Overseas Affiliates
Operations linked to overseas networks must also comply with ICAI’s rules, to ensure transparency and accountability.
Current Situation
There is no formal mechanism for regulating global tie-ups.
Previous Situation
Earlier those who are with present tie-ups were required to submit certain details with the ICAI by filing a specific form.
Future Implementation
The draft is now approved by ICAI’s apex council.
It will soon be published for public/stakeholder feedback.
It is expected to be finalised and notified by early July 2025.
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