Table of Contents
ICAI Brings New Norms for Audit Firms to Join Global Network
The Institute of Chartered Accountants of India (ICAI) has introduced new global networking guidelines for Indian chartered accountancy (CA) firms. These norms were announced by ICAI’s newly elected president, Prasanna Kumar D.
Purpose of the ICAI Guidelines Global Network
The new framework is designed to Enable Indian CA firms to partner with global audit and consulting networks, Help domestic firms grow, scale, and evolve into internationally competitive entities and Improve collaboration with global firms while ensuring compliance, independence, and governance standards
The move is aimed at strengthening India’s professional services ecosystem by facilitating international knowledge-sharing, improving audit quality and best practices, and supporting Indian firms in joining cross-border networks and alliances. This is a significant reform for the profession, given the increasing globalization of audit, assurance, and advisory services.
ICAI (Global Networking) Guidelines, 2025 Summary & Key Implications
The Institute of Chartered Accountants of India regulates and promotes global networking among Indian CA firms, ICAI‑registered networks, and foreign entities, including cross‑border alliances and affiliations.
Purpose & Intent of the Guidelines
The Guidelines are designed to strengthen professional opportunities for Indian CA firms, enhance competitiveness and innovation, encourage cross‑border collaboration, and facilitate integration with global audit, advisory, and assurance ecosystems. The idea is to responsibly enable Indian CA firms to grow beyond domestic boundaries while maintaining compliance, independence, and ethical standards.
What Qualifies as a “Global Network”?
A group is considered a global network when entities share any of the following: cost structures, brand names, trade names, or logos; quality‑control systems; operational or strategic frameworks; digital platforms or technological infrastructure; audit methodologies; and training resources and knowledge systems. Even informal structures such as alliances or service‑based collaborations require ICAI registration.
Registration Requirements for Global Network
- Name Approval—Form AGN: Application Fee: INR 10,000 + taxes. The name must also be distinct and non-misleading and must include “Global Network” as a suffix. Moreover, approved names are reserved for 180 days. And Imitation or similarity with existing ICAI‑registered networks leads to rejection (with an opportunity to be heard)
- Global Network Registration—Form BGN: Registration Fee: INR 30,000 + taxes and ICAI issues a Unique Registration Number post‑approval
- Mandatory Nodal Officer: Each network must appoint a Nodal Officer who Must be an ICAI member in good standing, should hold a key managerial position and Will handle compliance, filings, The Institute of Chartered Accountants of India (ICAI) communications, and OTP‑based verification
Global Network—Operational Flexibility Allowed
Global Networks may engage in cross-border resource pooling, technology/tool sharing, joint audits, joint delivery of services, global assurance engagements, sharing methodologies and professional practices, and knowledge exchange and training with participation in global M&A opportunities. This encourages Indian firms to adopt global best practices.
Restrictions & Professional Safeguards for Global Networking
- Restrictions under the Companies Act, 2013 (Section 144) : Domestic entities in a global network cannot provide prohibited services to statutory audit clients. This preserves independence and avoids conflicts of interest.
- Fee/Profit Sharing Restrictions: Sharing profits with non-members is prohibited. And profit‑sharing is allowed only among The Institute of Chartered Accountants of India (ICAI)‑registered firms.
- Misrepresentation Prohibited: Claiming membership of an unregistered global network constitutes professional misconduct.
Changes to Network Structure—Mandatory Reporting
Any modification such as entry/exit of domestic or foreign entities, structural changes, and revisions to agreements must be filed with ICAI. Filing Fee: INR 10,000, and changes become effective only after ICAI approval. OTP authentication by the Nodal Officer is mandatory. All modified constituents must comply with the CA Act, the Institute of Chartered Accountants of India (ICAI) Regulations & Code of Ethics, and independence norms. IESBA Code (where ICAI Code is silent)
Compliance Requirements for Global Network
- Independence & Rotation Norms : All domestic entities must follow Independence requirements, Partner rotation rules, and Disclosure of cost-sharing and revenue-sharing arrangements
- Detailed Disclosure Rules: Networks must disclose itemized cost or revenue‑sharing statements.
- Ethical Compliance: All networks must follow The Institute of Chartered Accountants of India (ICAI) advisories, Ethical standards, guidance notes, and in areas not covered, the IESBA Code (mutatis mutandis)
Annual Filing for Global Network—Form DGN
Every Global Network must file an annual return within 120 days of the financial year-end. The filing must include details of partners, staff, and key personnel; principal business addresses; disciplinary matters (if any); revenue and fee flows, especially cross‑border flows; and details of collaborations with foreign entities. The Institute of Chartered Accountants of India (ICAI) may request additional information within 180 days, and non-compliance may trigger disciplinary action.
De‑registration of Global Network
Voluntary De‑registration: A Global Network may apply for cancellation. ICAI initiated Cancellation: The Institute of Chartered Accountants of India (ICAI) may cancel registration in cases of misrepresentation, violation of guidelines or law, and actions contrary to public or professional interest.
After de Registration: The network must stop using the registered name immediately, and all liabilities incurred while registered continue to apply. The ICAI (Global Networking) Guidelines, 2025, create a robust regulatory system that:
- Enables Indian CA firms to participate in global ecosystems
- Ensures compliance with independence and ethical norms
- Prevents misuse of global affiliations
- Introduces strong reporting, transparency, and governance standards
- Regulates cross-border fee flows and network structures
- Provides a clear and uniform framework for international collaboration
These The Institute of Chartered Accountants of India (ICAI) Guidelines mark a major step forward in globally integrating Indian audit and professional service firms while maintaining the discipline and credibility of the ICAI framework.
