The Central government is considering amendments to the laws regulating Chartered Accountants (CAs) to ease restrictions on advertising by professionals and their firms, as per reports.
According to officials familiar with the matter, the proposed changes are expected to help CAs promote their services more effectively, win new assignments, and drive business growth, particularly for small and mid-sized firms looking to expand their reach.
Move to Ease Advertising Restrictions Under the Chartered Accountants Act
Currently, under the Chartered Accountants Act, 1949, professionals are allowed to advertise only in a limited manner-through "write-ups" that must follow strict rules regarding font size, photographs, and presentation. The proposed amendments aim to modernize these provisions, allowing more flexibility in advertising and helping Indian firms compete globally in the $240-billion international auditing and consultancy market.
This would mark a significant step toward creating large domestic audit and consulting firms capable of challenging the dominance of global players such as Deloitte, PwC, EY, and KPMG.
ICAI to Submit Proposals to the Ministry of Corporate Affairs
CA Charanjot Singh Nanda, President of the ICAI, confirmed that the institute plans to recommend changes to the Ministry of Corporate Affairs (MCA) to ease advertising restrictions.
He said ICAI is also working on revising its Code of Ethics and guidelines governing advertisements and websites for accounting and network firms. A draft of these updated regulations is expected to be released soon for public and stakeholder feedback.
Balancing Visibility with Ethics
CA Nanda clarified that while ICAI acknowledges the need for certain relaxations such as in the use of technology, font size, and event galleries - ethical standards will continue to remain intact. "The revised guidelines will help firms improve visibility without compromising on professional ethics," he said.
Background: Limited Relaxation Since 2006
The Chartered Accountants Act initially prohibited any form of advertising by CAs. However, limited permissions were introduced in 2006, allowing restricted advertisements through write-ups. ICAI subsequently issued detailed Advertisement Guidelines specifying dos and don'ts for members.
With the profession evolving rapidly and technology reshaping client engagement, industry experts say further liberalization is necessary to help Indian firms grow and consolidate.
ICAI Pushes for Larger Domestic Audit Firms
To encourage consolidation and expansion, ICAI has been introducing reforms such as the Merger and Demerger of CA Firms Guidelines, 2024, and the Aggregation of LLPs Guidelines, 2024. These initiatives aim to make it easier for domestic firms to collaborate, merge, and compete on a global scale.
The institute has also proposed fiscal incentives and simplified compliance procedures to support the creation of large, well-networked Indian accounting firms.
PMO Reviews Measures to Strengthen Indian CA Firms
According to reports, the Prime Minister's Office (PMO) recently reviewed regulatory changes to help domestic audit and consultancy firms scale up. Since 2017, Prime Minister Narendra Modi has emphasized the need for at least four large Indian firms to feature among the world's top eight-reducing dependence on foreign networks.
Conclusion
If implemented, the proposed relaxation in advertising rules could mark a turning point for India's accounting profession. By enabling greater visibility and business outreach-while upholding ethical standards, the move could empower Indian CA firms to grow stronger domestically and become competitive players in the global audit and consulting space.
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