Mirror firms allowed:
ICAI clears way for CAs in GIFT City
Ahmedabad, Aug 31, 2025
GIFT IFSC is set to see a large number of bookkeeping, accounting, taxation, and financial crime compliance services (BATF) firms coming in from across the country as the Institute of Chartered Accountants of India (ICAI) has decided to ease the rule of exclusivity of firms. Until now, a CA who was a partner with a firm could not join any other firm. The rule was set up to avoid monopoly in RBI and CAG-related work. However, recently, ICAI decided that setting up a mirror firm in GIFT IFSC will not affect exclusivity in India.
The ICAI has also decided to allow CAs to obtain COP of other countries to ensure they can work globally.
GIFT IFSC has introduced BATF regulations, and the ICAI move will enable GIFT City to attract a significant number of CA firms. This will result in more employment opportunities at GIFT City.
Aniket Talati, former president of ICAI, said, "Earlier, a CA could not join another CA firm to avoid losing out on RBI and CAG empanelment works. However, IFSCA has offered a new opportunity, and to ensure GIFT City emerges as a global financial services hub, this relaxation has been given. The ICAI is expected to announce the norms soon. If a CA firm with office in other cities of India opens a mirror firm with similar partners, it will not lose exclusivity. This will enable CA firms from across the country to set up base at GIFT IFSC without losing out on domestic work."
ICAI president CA Charanjot Singh Nanda said, "With our reforms, CAs can have two COPs now and provide outsourcing accounting services. The Indian economy is growing rapidly, and currently, we have around 4.50 lakh CAs. We believe the country will require around 30 lakh CAs by 2047. We have decided a CA can have two COPs also to ensure India becomes a global leader in accounting. Until now, a CA with a COP of India was not allowed to obtain a COP of another country. Now, we will allow COPs of countries like the UK, Australia, Canada and New Zealand, among some others."
[The Times of India]
