New Delhi, October 14, 2025 — The government is in the final stages of reviewing amendments to the Companies Act, aimed at empowering domestic audit firms to compete more effectively with the global “Big Four” — Deloitte, PwC, EY, and KPMG. According to sources, the Ministry of Corporate Affairs (MCA) is holding advanced consultations, and the proposed reforms could soon be introduced through a Companies Act Amendment Bill.
One of the key proposals includes relaxing partner composition norms that currently restrict Indian firms from forming multi-disciplinary partnerships (MDPs). These rigid rules, professionals argue, limit the ability of Indian firms to attract diverse talent and evolve alongside increasingly complex business environments.
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Tender Norms and Capital Support Under Review
In addition to legislative amendments, the government is exploring tender reforms and capital support mechanisms to help domestic firms expand their footprint. Tender norms for large-value government audits often favor international players due to high turnover and global affiliation requirements.
Proposals under discussion include the mandatory inclusion of Indian firms in government audit tenders and the lowering of eligibility thresholds to widen participation. Parallel efforts are underway to design capital assistance programs, enabling Indian audit firms to invest in technology upgrades, branding, and overseas expansion.
A senior Institute of Chartered Accountants of India (ICAI) member noted, “Policy interventions on tender norms and capital support can accelerate capacity-building in the sector. Domestic firms need both regulatory flexibility and financial backing to scale.”
Structural Constraints and Key Sections Under Review
Experts emphasize that Sections 141 and 144 of the Companies Act remain at the heart of structural reform.
- Section 141(1) mandates that a majority of firm partners practicing in India must be chartered accountants — a safeguard for professional standards, but one that prevents the creation of multi-disciplinary partnerships. Such structures have been instrumental in the global success of major international firms.
- Section 144, which governs conflict-of-interest provisions, is also being reconsidered to align with modern business realities and allow firms to expand service offerings beyond statutory audits.
Addressing these barriers, sources say, will be central to the government’s policy strategy for leveling the playing field over the next five to seven years.
ICAI’s Role and the Path Ahead
The ICAI is actively collaborating with the government to align India’s regulatory framework with global norms. The institute is also developing a digital platform for CA firm mergers, intended to promote consolidation and scaling within the sector.
Experts believe that easing regulatory barriers and fostering multi-disciplinary talent will be key to transforming India’s audit and advisory ecosystem. Once enacted, these reforms could significantly alter the market structure, giving Indian firms the tools to challenge the dominance of global networks.
A senior industry source remarked, “If these amendments go through, we could see a fundamentally different professional services landscape within the next decade.”
