Page 155 - Quick Insights Book 2022

14 Revised Guidelines of Network

Annexure 14

Revised Guidelines of Network

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

[Set up by an Act of Parliament]

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
The Guidelines for Networking of Indian CA firms, 2021

1. Preamble networking amongst domestic CA firms only. At a later
stage, the Council may consider further modifications
1.1 Over the years, our Members have adopted different in the present Networking Guidelines so as to pave
models of practice viz.
way for Indian CA Networks to enter into networking
• Practice in individual name arrangement with foreign accounting firms and have
networking arrangements with foreign networks.
• Practice as a sole proprietary firm
1.6 The previous guidelines did not fetch expected level
• Practice as a partnership / Limited Liability of enthusiasm from members and only close to 100
Partnership firm networks could get registered with ICAI as on date. This
• Merger of two or more firms threw up the need to review the Guidelines in order to
make it more relevant and attractive in terms of current
• Network firms professional scenario.

1.2 All the above forms of practice are recognised by the 1.7 Therefore, the Council of ICAI decided to modify the
ICAI. Guidelines to make it easier for the Indian CA firms to
form network and also remove any impediments and
1.3 Amongst the above, networking is generally considered
as the most effective platform for capacity building. bottlenecks that dissuade the firms from growing bigger
It facilitates multi locational presence of the firm, by joining a network. Another equally critical concern was
strengthening partnerships and enhanced functioning of not only to protect the professional practice of the small
the CA firms. Though Members are at liberty to adopt and medium firms, but also their identity. Therefore,
any form of practice as they choose, it is overwhelmingly an attempt is made to mitigate the hardships in the
felt that to see exponential growth of one’s practice, revised Guidelines and encourage practising Members
Networking is one of the preferred choices. to consider Networking.
1.8 With the above intent in mind, the Council formed a
1.4 In this context, the Council of ICAI issued Network
Guidelines for the first time in the year 2005 and Group of Council members in March, 2020 to have
thereafter, the same was revised by the Council in the holistic review/ study of the Guidelines for Networking.
year 2011. The Group held several rounds of discussions and came
out with a proposal to offer to the Members different
1.5 Members may note that the Council, at the present, options, which the Members can choose depending
is focussing on revision in Networking guidelines in upon what suits them the best. The Council at its 396th
order to enable the Indian CA firms to develop a meeting held in September-October, 2020 decided to
sound Network of Firms, and after a gestation period, conduct Outreach Programmes, so that the views of
move towards allowing foreign firms to join the Indian Members be heard, collated and placed before the
CA networks. Therefore, this paper is limiting itself to Council for approving the revised Guidelines.

142 Quick Insights on Professional Opportunities for Chartered Accountants