The Institute of Chartered Accountants of India (ICAI) has taken a significant step towards boosting the presence of accounting and financial firms in Gujarat International Finance Tec-City (GIFT IFSC) by easing restrictions on the exclusivity of Chartered Accountant (CA) firms.
Until now, CAs who were already partners in a firm could not establish another practice, as rules prevented setting up mirror firms. This restriction often limited opportunities for Indian accountants, especially when compared to global peers. However, ICAI has now permitted the establishment of mirror firms within GIFT IFSC, stating that such a move will not dilute or impact the exclusivity of firms operating in India.
The decision is expected to attract a large number of bookkeeping, accounting, taxation, and financial crime compliance service providers—collectively referred to as BATF (Bookkeeping, Accounting, Taxation, and Financial crime compliance) firms—from both within India and abroad.
New Opportunities for Global Expansion
ICAI has also decided to allow CAs to obtain Certificates of Practice (COP) in other countries to help them operate and compete globally. This move aligns with GIFT City’s ambition to emerge as a premier international financial hub.
The International Financial Services Centres Authority (IFSCA) has already introduced regulatory changes to facilitate BATF services. With ICAI’s decision, the process is expected to further enhance the competitiveness of Indian CA firms in international markets.
Former ICAI President Aniket Talati highlighted the importance of this reform, stating:
“IFSCA has offered a new opportunity. To ensure GIFT City emerges as a global financial services hub, this relaxation has been given. The ICAI is expected to announce the norms soon.”
Dual Practice Now Possible
Earlier, CAs were prohibited from joining more than one firm to avoid conflicts regarding assignments from regulators such as the Reserve Bank of India (RBI) and the Comptroller and Auditor General (CAG). With the new reforms, CAs will now be able to hold two COPs—one for domestic practice in India and another for international work through GIFT City.
ICAI President CA Charanjot Singh Nanda said:
“With these reforms, CAs can have two COPs now—one for India and one for abroad. The Indian accounting profession, which already commands around 4.50 lakh CAs and students, will now compete at par with global firms.”
Expanding Global Footprint
ICAI has also been actively signing Memoranda of Understanding (MoUs) with several foreign accounting bodies, including those in the UK, Australia, and Canada. The new decision on mirror firms and multiple COPs is expected to complement these agreements, enabling Indian CAs to expand their footprint worldwide while simultaneously strengthening GIFT City’s role as an international financial services hub.
Industry experts believe this move will significantly increase employment opportunities in GIFT City and position India as a strong player in global accounting and compliance services.
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