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Government plans to relax advertising restrictions for chartered accountants
At present, CAs and their firms can only advertise through limited “write-ups” with strict controls on elements such as font size, photographs, and format.
At present, CAs and their firms can only advertise through limited “write-ups” with strict controls on elements such as font size, photographs, and format.
The Indian government is likely to amend the Chartered Accountants Act, 1949, in a move that could ease long-standing restrictions on how chartered accountants (CAs) and their firms advertise their services. The reform, according to people familiar with the matter, aims to help professionals attract more assignments, build stronger domestic brands, and compete with global auditing and consultancy giants in the $240 billion international market.
At present, CAs and their firms can only advertise through limited “write-ups” with strict controls on elements such as font size, photographs, and format. The proposed amendments seek to provide more flexibility and visibility to Indian firms, encouraging the creation of large, homegrown networks that can rival global players.
ICAI working on revisions to ethics code and ad guidelines
As per a report by The Economic Times, when contacted, Institute of Chartered Accountants of India (ICAI) president Charanjot Singh Nanda said that the institute is planning to recommend amendments to the corporate affairs ministry to further ease advertising rules for members.
Nanda explained that the ICAI is also revising its Code of Ethics for chartered accountants and firms, which includes updating the guidelines governing advertisements and websites for accounting and network firms. He said that draft regulations will be released within a few days for stakeholder feedback.
Nanda said that certain relaxations have been identified, including in areas such as the mode of technology (push or pull), event galleries, and font size, and that recommendations are being structured accordingly. He noted that these updated guidelines would ensure adherence to ethical principles while allowing firms to enhance their visibility and outreach.
The Chartered Accountants Act initially prohibited any form of advertising by professionals or firms. However, limited advertisements through write-ups were permitted following amendments in 2006, subject to strict conditions. The ICAI subsequently introduced detailed Advertisement Guidelines to outline the dos and don’ts for members.
Push for stronger domestic firms
Nanda said that the ICAI has already shared a set of proposals with the corporate affairs ministry to help Indian CA firms scale up and compete globally. These include measures to encourage consolidation and growth through simplified regulatory procedures, fiscal incentives, and improved operational capacity of Indian accounting networks. He added that rationalising compliance requirements would also help improve the overall ease of professional practice in India.
He noted that the absence of large domestic firms has enabled the Big Four—EY, Deloitte, KPMG, and PwC—along with Grant Thornton and BDO, to dominate India’s audit landscape. To counter this imbalance, the ICAI has recently revised its Merger & Demerger of CA Firms Guidelines, 2024, and introduced the Aggregation of LLPs Guidelines, 2024, to promote collaboration and scale-building among Indian CA firms.
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