Government Plans to Ease Advertising Rules for Chartered Accountants

The government is planning to change the law for chartered accountants (CAs) to make it easier for them to advertise their services. This will help CAs and their firms to promote what they offer, get more work, and grow their business, according to people familiar with the matter.

Right now, Chartered Accountants (CAs) and their firms can advertise only in a very limited way. They’re allowed to share small “write-ups” (short descriptions about their services), but there are strict rules; for example, there are limits on the font size, photos, and other details they can include under the Chartered Accountants Act, 1949.

The new plan aims to help build large Indian firms that can compete with international companies and get a share of the $240 billion global auditing and consulting market.

Charanjot Singh Nanda, the president of the Institute of Chartered Accountants of India (ICAI), said that the accountants’ body has requested the corporate affairs ministry to further relax the advertising rules for its members. He also mentioned that the ICAI is considering updating its Code of Ethics for chartered accountants and firms. This update will include new guidelines on advertising and on how accounting and network firms can design their websites.

According to Charanjot Singh Nanda, the ICAI will release draft regulations within a month or two for public feedback. He added that some relaxations are being considered for example, in how technology is used (pull or push mode), in displaying event galleries, and in the allowed font size. Nanda said, these changes will help firms become more visible while still following ethical standards.

The Chartered Accountant Act earlier didn’t allow professionals or firms any advertisement. However, after amendments to the law in 2006, limited advertisements through write-ups were permitted, subject to conditions.

Later, the ICAI issued Advertisement Guidelines that set out what CAs and their firms can and cannot do when promoting themselves.

To help build large Indian audit and consultancy firms that can compete with the Big Four, ICAI president Charanjot Singh Nanda said the institute has shared its suggestions with the corporate affairs ministry.

These suggestions helps in:

• Making it easier for firms to merge and grow through simpler rules and tax benefits.
• Strengthening local networks of Indian CA firms.
• Improving ease of doing business for professionals by reducing unnecessary compliance requirements.

Right now, because India doesn’t have big homegrown firms, global giants like EY, Deloitte, KPMG, and PwC, along with Grant Thornton and BDO, continue to dominate the Indian audit market.

The ICAI, for its part, has taken several steps to help CA firms grow and collaborate. According to Nanda, it has:

• Updated the Merger and Demerger of CA Firms Guidelines, 2024, and
• Introduced the Aggregation of LLPs Guidelines, 2024,
• Both of which aim to make it easier for firms to join forces and build larger, stronger entities.

In addition, the institute is working on a new regulatory framework that will allow Indian firms to partner with global firms, helping them expand their reach and expertise.