From Local to Global: How ICAI’s New Policy Empowers CAs to Expand via Mirror Firms in GIFT City

The Institute of Chartered Accountants of India (ICAI) has introduced a transformative reform allowing Chartered Accountants (CAs) to set up mirror firms in GIFT City — India’s International Financial Services Centre (IFSC). Alongside, the Institute has approved dual Certificates of Practice (COPs), enabling professionals to operate both within India and overseas jurisdictions.

This reform is designed to integrate Indian accounting professionals into the global ecosystem while strengthening India’s position as a financial hub. Let’s explore what this means, why it matters, and how CAs can leverage this opportunity.

Understanding Mirror Firms and Dual COPs

Mirror Firms in GIFT City

A mirror firm is essentially a counterpart of an existing Indian CA firm established in GIFT IFSC, with similar ownership or partnership. Under ICAI’s new policy, CAs can now create such entities without breaching exclusivity conditions that earlier restricted them to a single firm.

Previously, being associated with more than one firm could lead to disqualification from government empanelments like those of the RBI or CAG. This restriction has now been relaxed for GIFT City operations.

Dual Certificates of Practice (COPs)

ICAI will now permit Indian Chartered Accountants to hold two practice certificates—one valid in India and another for a foreign jurisdiction such as the UK, Australia, Canada, or New Zealand.

This move enables Indian professionals to deliver cross-border services or operate through their GIFT-based entity without surrendering their domestic license.

Why ICAI Introduced This Reform

This decision aligns with both national and global objectives. Key motivations include:

1. Boosting GIFT City’s global standing

The reform supports India’s ambition to develop GIFT City into a leading international financial hub, comparable to Singapore or Dubai. By welcoming CA firms into the ecosystem, ICAI is driving financial expertise and governance excellence into the IFSC.

2. Facilitating global practice opportunities

As Indian companies expand internationally, CAs often handle clients with cross-border requirements. The dual COP system empowers them to provide seamless global services.

3. Removing rigid practice limitations

Earlier, strict rules prevented CAs from being part of multiple firms. The new provision allows participation in IFSC operations while retaining the home practice, creating much-needed flexibility.

4. Encouraging growth and employment

With GIFT City developing rapidly, this change will attract accounting talent, create skilled jobs, and strengthen India’s financial services ecosystem.

5. Preparing for the future demand surge

ICAI estimates the number of practicing CAs in India could grow nearly sixfold by 2047. These reforms lay the foundation for that expansion.

Key Benefits and Opportunities

Global reach with local roots: Firms can manage domestic operations while serving international clients via GIFT City.
Expanded service portfolio: Through mirror firms, professionals can engage in fund accounting, offshore compliance, international taxation, and IFSC-specific audits.
Enhanced credibility: A presence in GIFT City adds prestige and signals alignment with global standards.
Talent and operational advantages: Firms can set up specialized teams in GIFT City to manage both Indian and international projects efficiently.
Flexibility in business models: The earlier exclusivity clause is now relaxed, allowing firms to innovate and collaborate.

Challenges and Practical Considerations

While promising, implementation requires careful planning.

1. Regulatory clarity: ICAI and IFSCA are expected to issue detailed operational guidelines on firm structure, audit norms, and disclosure standards.
2. Foreign jurisdiction compliance: CAs must ensure they meet each country’s licensing criteria despite having a dual COP.
3. Conflict management: Firms must maintain clear operational boundaries and transparency to prevent conflicts of interest.
4. Setup cost: Office infrastructure, staffing, and compliance costs in GIFT City should be factored in before launch.
5. Client adaptation: Transitioning clients or convincing them to operate through a GIFT entity may require time and communication.

Step-by-Step Approach for CA Firms

1. Stay updated with ICAI notifications regarding dual COP and mirror firm regulations.
2. Conduct a feasibility analysis to evaluate potential client demand for IFSC-related services.
3. Consult legal and tax advisors to design the optimal entity structure.
4. Apply for the dual COP once the final framework is announced.
5. Establish your GIFT City presence — choose office space, hire staff, and integrate compliance systems.
6. Promote your IFSC arm to clients highlighting global service capabilities and regulatory alignment.
7. Ensure strong internal controls for data protection, ethics, and compliance across both entities.

Broader Impact on India’s Financial Ecosystem

Strengthening GIFT City: The move will accelerate the inflow of accounting, audit, and compliance firms into India’s financial hub.
Positioning India globally: Indian CAs will now compete directly in international markets while staying rooted in India’s legal and professional framework.
Enhancing trust in Indian firms: Greater regulatory transparency and international exposure will raise service standards.
New career avenues: Young professionals gain access to global assignments without leaving India.

Final Analysis

ICAI’s approval for mirror firms and dual COPs marks a turning point in India’s accounting profession. It opens global doors for CAs while reinforcing India’s mission to become a financial powerhouse through GIFT City.

For forward-looking firms, this reform represents an opportunity to scale up, diversify services, and build international credibility — all while continuing to serve clients in India.

The future of accounting is global, and Indian Chartered Accountants are now officially part of that transformation.

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