Introduction
For decades, the Indian accounting profession operated at the crossroads of two compelling forces. On one hand, its statutory foundation, the Chartered Accountants Act, 1949 established a robust and sovereign regulatory framework for the practice of accountancy in India. On the other, the dynamics of global capital markets and integrated financial services pulled Indian practices into orbit around multinational audit and advisory networks. This dichotomy created a persistent structural tension: how could Indian firms participate meaningfully in global networks without sacrificing the regulatory clarity that underpins public confidence?
With the notification of the ICAI (Global Networking) Guidelines, 2025 in the Gazette of India on 11th February 2026, the profession has its most definitive regulatory response to that question to date. By formalising a registration and oversight architecture for global networks that collaborate with Indian Chartered Accountant firms, the Guidelines integrate global participation and domestic accountability in a single framework.
The guidelines establish a structured regulatory pathway for global networks associating with Indian Chartered Accountant entities through a series of forms:
The first step is the approval of the proposed Global Network name through Form AGN (Application for approval of name for global network). Following name approval, the Global Network must file Form BGN (Application for registration of global network for formal registration). Form BGN requires disclosure of structural particulars of the Global Network, details of affiliated domestic entities, the identity and particulars of the Nodal Officer, prescribed declarations and undertakings confirming compliance with the Chartered Accountants Act, 1949, ICAI Regulations, ICAI Code of Ethics, the Global Networking Guidelines
Upon acceptance of Form BGN, the Global Network is brought within ICAI’s supervisory jurisdiction. Form CGN (Declaration for change in constitution of registered global network) is to be filed when there are changes in, constitution or ownership of the Global Network, Affiliations, designated Nodal Officer, other material structural particulars. If the Nodal Officer changes after registration, the update must be filed through Form CGN. Form CGN-1 (Application for approval of updated name of the registered global network) is to be filed when the associated Indian firm undergoes structural changes, including change in partners, change in ownership, change in organisational structure. This ensures ICAI’s records reflect the current position of the domestic affiliate. Form EGN (Application for de-registration of global network) is for periodic compliance confirmation, Form FGN (Application for withdrawal of approval of name for global network) is for declaration and undertakings, Form DGN (Annual return to be filed for global network) to be filed for de-registration of global network.
Conclusion
The future of chartered accountant firms in a globalised economy does not hinge on choosing between sovereignty and scale. What the ICAI Global Networking Guidelines, 2025 have demonstrated is that both can coexist provided the architecture that governs them is clear, enforceable, and oriented toward public interest.
By requiring formal registration, local accountability, ethical compliance, and structured transparency, the guidelines align global participation with domestic regulatory imperatives. In doing so, the ICAI has charted a course that neither isolates the firms nor exposes them to unregulated global integration.
For Indian accounting firms seeking to compete on the world stage, the message is definitive, global engagement is welcome, but it must be institutionalised.
Expositor(s): Adv. Jahnobi Paul
