The Institute of Chartered Accountants of India (ICAI) has announced new regulations allowing chartered accountants (CAs) to establish minor companies in the Gujarat International Finance Tec-City (GIFT) in Gandhinagar, Gujarat.

The move is intended to relax the existing exclusivity rules for CAs and enhance India’s standing in the global accounting sector, the Times of India reported.

The GIFT International Financial Services Centre (GIFT IFSC) is being developed to attract a significant number of bookkeeping, accounting, taxation and financial crime compliance services (BATF) practices from across the country.

Previously, CAs who were partners in a company were prohibited from joining any other company to prevent monopolistic practices concerning work related to the Reserve Bank of India (RBI) and the Comptroller and Auditor General (CAG).

However, the ICAI has recently clarified that establishing a similar (mirror) company in the GIFT IFSC does not violate the exclusivity rule that applies to work within India.

Aniket Talati, the 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 offices in other cities in 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.”

Additionally, the ICAI has granted CAs the ability to retain two Certificates of Practice (COPs) – one in India and another in foreign jurisdictions such as the UK, Australia, Canada and New Zealand – thereby allowing them to operate internationally.

Current ICAI president Charanjot Singh Nanda was quoted by the news agency as saying: “With our reforms, CAs can have two COPs now and provide outsourcing accounting services.

“We have decided that 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.”