Indian CA Firms can now tie up with global accounting firms

• ICAI has just approved a draft regulatory International Partnership Framework that could transform how domestic CA firms scale! 
• What does this mean? For the first time, Indian CA firms could tie up with global accounting networks “officially”.
• Final notification is expected by July 2025.
• Draft framework to be released soon for public feedback.

Why this matters

Until now, Indian CA firms were operating in regulatory limbo. 

A few examples:

These affiliates:

• Use the “Big 4 brand” under licensing or technical collaboration agreements
• Follow their methodologies and tools
• Serve global clients with local delivery

However, on paper, they are legally independent firms! 

Why so?

• There were no clear rules or structured regulations that explicitly governed how Indian CA firms could partner with foreign firms.
• Tie-ups were mostly informal — brand-only, technical collaboration, or knowledge-sharing arrangements
• Foreign firms couldn’t directly offer audits — they had to operate through “local affiliates”
• No foreign equity is allowed in CA firms
• ICAI’s earlier ‘Form FAF’ (for foreign affiliations) was discontinued years ago.

Right now, only the BIG firms manage to navigate these “opaque setups”.

This lack of clarity made it hard for smaller/mid-sized domestic CA firms to replicate these models!

What is ICAI’s 2025 International Partnership Framework?

It’s a proposed regulation that allows Indian CA firms to legally partner with foreign accounting networks.

All they have to do is:

• Register such alliances with ICAI
• Appoint a nodal officer for compliance
• Submit annual returns, declarations, and structural changes
• Ensure both Indian and foreign firms follow ICAI’s ethical standards

Who benefits from ICAI’s International Partnership Framework?

Domestic CA Firms:

• Access to global tools, clients, and credibility
• Boost in scale, talent retention, and global exposure
• Ability to offer end-to-end solutions to Indian MNCs and startups expanding globally

Global Firms:

• Legal entry into the fast-growing Indian market
• Local talent, regulatory insight, and delivery capacity
• Brand presence and deeper Indian client relationships

Also read: Desi Big 4s: Government & ICAI revamp rules to build India’s Big 4

Impact on CPA firms with GCCs in India

India already hosts a growing number of Global Capability Centres (GCCs), including Top 30 U.S. CPA firms such as EisnerAmper, Moss Adams, and Citrin Cooperman.

(We are assuming), that with this new framework, US CPA Firms can go beyond GCCs and provide a regulated pathway to:

• Form formal partnerships with Indian firms
• Scale in India beyond “just” back-office operations
• Tap into India’s domestic market — startups, family offices, MNCs and offer cross-border tax, advisory services

Building a “Desi Big 4”

This move isn’t in isolation. The government and ICAI have been actively revamping regulations:

• 2023: Eased merger/demerger rules with 10-year flexibility

• ICAI-led initiatives to scale domestic CA firms to global standards

This latest framework is the missing puzzle piece.

Some industry views…

A managing partner at a leading Indian firm shared:

“It’s mostly cosmetic — people network, but lack the skill or training to turn that into real collaboration.”

Meanwhile, a partner at a Mumbai-based firm countered:

“This could reshape India’s entire consulting landscape. Expect a wave of JVs, M&As, and maybe even a new generation of Desi multinationals.”

Is it a turning point for Indian CA firms?

Of course, the final verdict rests on the detailed draft. 

But this is a massive scaling opportunity for those “already positioned” with vision, capabilities, and international intent.

• Top-tier Indian Domestic firms just below the Big 6
• Ambitious mid-sized CA firms in Tier 1 & Tier 2 cities
• U.S. and UK CPA firms with GCCs in India
• Forward-looking Indian professionals

What does this mean for small CA firms?

• Small, traditional CA firms that don’t adapt may get edged out.
• Progressive, tech-savvy firms that act now could define India’s future accounting landscape.
• Indian CA firms could lose key staff to newly formed Indo-global JVs or foreign firms entering with deeper pockets.

Also read: Indian CA Firms Race to Acquire Small US CPA Firms!

Wrapping up…

ICAI President Charanjot Singh Nanda said “This is a significant milestone in taking Indian CA firms to the global tier. Through international networks, our professionals will have access to a bigger toolkit and operate to world-class standards.”

India is the 4th largest economy, with a $4.19T GDP.

Global interest in Indian talent and markets is at an all-time high.

U.S. and UK firms want in; Indian firms want to scale. Could this framework bridge the gap?

(Note: This is still a developing story — final clarity will emerge once the framework is officially released.)