CAs from UK and Canada might be allowed to Practice in India: ICAI

Chartered accountants from the United Kingdom and Canada may be allowed to practice in India on a reciprocal basis, according to the governing body ICAI, which has proposed this to the government.

ICAI President Ranjeet Kumar Agarwal stated on Wednesday, that the plan will be implemented strictly on a reciprocal basis, meaning that chartered accountants from India will be able to practice in the United Kingdom and Canada.

This will be the first time that an international chartered accountant will be permitted to practice in India. The idea is part of India’s ongoing discussions for free trade agreements (FTAs) with the United Kingdom and Canada. Agarwal also mentioned that a similar arrangement is being considered with Australia.

When the reciprocal system is adopted, chartered accountants from foreign nations must register with the ICAI, which will regulate them.

“It will be done on a reciprocal basis rather than a standalone basis. If they agree, it will be a win-win for both nations… we are quite hopeful… in the UK, there is an elderly population, and most of the business has gone from the UK to India…,” said Agarwal, who became President of the Institute of Chartered Accountants of India (ICAI) on February 12.

To a question regarding the influence of chartered accountants from other nations practising in India, he stated, “India is a developing country, and they are developed countries,” referring to the United Kingdom, Canada, and Australia

“It will be in our interest because our members can go there…,” he went on to say.

He underlined that Indian chartered accountants are in high demand internationally due to their skills and knowledge.

According to ICAI estimates, there would be a need for around 30 lakh chartered accountants over the next 20-25 years. The institute has around 4 lakh members and 8.5 lakh students. Currently, around 42,000 chartered accountants from India are working overseas.