ICAI plans further reforms to scale up homegrown accounting firms

In the next step towards creating domestic accounting firms of scale, the Institute of Chartered Accountants of India is planning on further measures that are likely to take shape over the next two months.

One of the proposals under consideration is to open networking guidelines to firms of other professions that would help in setting up multidisciplinary firms.

The move would mean that CA firms can tie up with Company Secretaries, lawyers and even consulting firms to open a multidisciplinary firm that would be able to provide comprehensive and holistic advice to companies and be at par with global consulting giants.

According to senior ICAI officials, the proposal has been discussed internally and will be subject to the decision of the ICAI Central Council and the Ministry of Corporate Affairs. “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,” said Mangesh P Kinare, Vice President, ICAI.

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The move would also require an amendment to the Chartered Accountants’ Act.

Another ICAI official noted that they would require more support of the government to unlock scale in domestic CA firms. These include recognition of aggregation structures, removing impediments in government consulting work, infrastructure, and capital infusion for Indian CA firms as well as tax incentives for aggregation.

The move is in line with the aim of the government to create homegrown consulting firms that can work on a global scale on the lines of the Big Four firms.

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Recent measures taken by the ICAI to help in mergers and demergers with 1,000 CA firm mergers approved between February and August 2026, ICAI data revealed. Similarly, the networking model is also taking shape with 10 such structures coming up between February and August 2026. As many as 18 management consultancy companies have also been registered with the ICAI in the same period.