What is the agreement betweeen ey and s.r baltiboi & co?

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Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2016 Hi,

Would like to know the agreement between EY & S.R Baltiboi & co.
What enables EY to do business in India? Is it some type of Consulting agreement.

Amol S Joglekar

Amol S Joglekar (Expert)
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31 August 2016 There is NO bar for doing any consulting business in india. Are you concerned about doing CA profession?

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2016 Sir,
I know the fact that there is no bar in doing consultancy business. But a foreign entity is not allowed to do Legal and Accounting Business in India as FDI in accounting and Legal Services are not allowed.
This is the reason why the big four's have agreed into an agreement with the Indian CA Firms. So i would like to what is the agreement that they have entered.
Further a CA is deemed to have conducted professional misconduct if he
pays or allows or agree to pay, any share, commission or brokerage in the fees or profits of his professional business to any other person other than a member of the institute.

So how has EY entered into an agreement with S R Baltiboi & Co. & What is the type of agreement between them.

Thanks.

Amol S Joglekar

Amol S Joglekar (Expert)
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31 August 2016 both the entities work independently. There is NO any agreement as such to that effect

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2016 I'm sorry sir. But i dont think your answer is correct. S.R Baltiboi and Co is under EY same is the case with BSR & Associates with KPMG. You can check on the internet for Newspaper clippings etc..

Thank you for your time.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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03 August 2025 Great question! Here's a detailed explanation about the agreement between EY (Ernst & Young Global) and S.R. Batliboi & Co. LLP and how EY operates in India:

Background and Legal Context
Foreign Direct Investment (FDI) in Accounting and Legal Services is not permitted in India.

Hence, foreign audit or accounting firms cannot directly practice in India.

To comply with this, global networks like EY, Deloitte, KPMG, PwC operate in India through their Indian member firms, which are separate legal entities registered in India.

What is S.R. Batliboi & Co. LLP?
S.R. Batliboi & Co. LLP is the Indian member firm of the Ernst & Young Global Limited (EY Global) network.

It is an Indian partnership or LLP firm registered with the Institute of Chartered Accountants of India (ICAI).

It is legally independent but operates under the EY global brand.

The Agreement Between EY Global and S.R. Batliboi & Co.
The relationship is based on a "Membership Agreement" (not a consulting agreement).

This agreement:

Grants S.R. Batliboi & Co. LLP the right to use the EY brand and trademark in India.

Allows sharing of global methodologies, technical support, training, and intellectual property.

Ensures adherence to EY Global's quality standards, policies, and ethics.

Clearly maintains legal and operational independence of S.R. Batliboi & Co. LLP as per Indian laws.

It is not a profit-sharing agreement in a way that violates ICAI regulations.

EY Global does not hold ownership or control over S.R. Batliboi & Co.’s professional services. The Indian firm complies fully with ICAI’s Code of Ethics, including restrictions on fee sharing.

How Does EY Operate in India Legally?
EY Global does not directly provide professional services in India.

The Indian member firm S.R. Batliboi & Co. LLP provides audit, tax, advisory, and consulting services.

This model complies with FDI restrictions and ICAI’s professional conduct rules.

The agreement allows EY Global to maintain a global network while respecting local regulations.

Why This Arrangement?
The Big Four global accounting networks use this structure globally where direct foreign ownership or operation of audit firms is restricted.

This allows clients to benefit from EY’s global expertise and resources while maintaining compliance with Indian laws.

Summary:
Aspect Description
Type of Agreement Membership agreement, licensing of brand & methodologies
Legal Entity in India S.R. Batliboi & Co. LLP (Indian CA firm)
EY Global’s Role Brand owner, technical support provider, global standards
Ownership & Control Independent operation by Indian member firm
Compliance Adheres to ICAI’s regulations and FDI laws

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