5 hrs ago
ICAI Plans Reforms to Expand India’s Homegrown Accounting Firms
India’s accounting regulator wants accounting firms to become larger and offer more kinds of professional advice.
Under the proposal, chartered accountants could work together with lawyers, company secretaries and consulting firms.
These combined businesses would be called multidisciplinary firms.
They could give companies more complete advice in one place.
The proposal still needs approval from the ICAI Central Council and the Ministry of Corporate Affairs.
The law governing chartered accountants may also need to change.
ICAI officials want government help with funding, taxes and access to consulting work.
They say the plan could help Indian firms compete with large global consulting companies.
The Institute of Chartered Accountants of India plans to let CA firms partner with company secretaries, lawyers and consulting firms.
The proposed multidisciplinary firms would offer broader advice and compete with global consulting firms.
The proposal will go to the ICAI Central Council and would require Ministry of Corporate Affairs approval and an amendment to the Chartered Accountants’ Act.
ICAI officials are seeking government support through aggregation recognition, improved access to government consulting work, infrastructure, capital and tax incentives.
ICAI data shows 1,000 CA firm mergers, 10 networking structures and 18 registered management consultancy companies between February and August 2026.
- Who
- The Institute of Chartered Accountants of India, its Central Council and the Ministry of Corporate Affairs are involved; ICAI Vice President Mangesh P. Kinare discussed the proposal.
- What
- ICAI is considering reforms that would allow CA firms to form multidisciplinary partnerships with company secretaries, lawyers and consulting firms.
- Where
- India.
- When
- The first draft is expected within two months; ICAI data cited covers February through August 2026.
- Why
- To help Indian accounting and consulting firms grow, provide comprehensive advice and compete globally.
Key facts
- Proposal
- Allow CA firms to tie up with company secretaries, lawyers and consulting firms.
- Approval required
- The proposal must be considered by the ICAI Central Council and the Ministry of Corporate Affairs.
- Legal change
- The Chartered Accountants’ Act would need to be amended.
- Draft timeline
- The first draft is expected within two months.
- Mergers
- ICAI approved 1,000 CA firm mergers between February and August 2026.
- Networking structures
- Ten networking structures were established during the same period.
- Management consultancies
- Eighteen management consultancy companies were registered with ICAI during the same period.
Quotes
Mangesh P. Kinare
Vice President of the Institute of Chartered Accountants of India
“It is going to be taken up by the ICAI Central Council shortly and the first draft of the proposal will be ready within two months”
businesstoday.in
Sources
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