Global accounting firms; from Big Four networks to mid-sized CPA practices in the United States and Canada are increasingly expanding their operations into India. U.S. accounting firms face talent shortages and rising operational costs.
Today, nearly 80% of the top 30 U.S. accounting firms and a growing number of Canadian CPA firms operate dedicated delivery centers in India. The Big Four alone employ more than 228,000 professionals across over 85 Indian offices spanning audit, tax, consulting, analytics, and global support functions.
This expansion represents a defining moment for India as a global accounting talent hub, comparable to the technology offshoring boom of the 1990s. For U.S. and Canadian firms, India is no longer a tactical outsourcing destination but a strategic extension of the firm.
This guide provides a comprehensive, research-driven roadmap for accounting firms evaluating or actively planning an India presence.
It covers the business rationale, operating and entry models, a step-by-step setup process, governance and compliance considerations, lessons from firms that have scaled successfully, and the ecosystem of support available to ensure long-term success.
Your accounting firm's success in India depends on picking the right entry model. Each approach comes with unique advantages that tie into your strategic goals, regulatory needs, and control requirements.
Let's look at five main ways accounting firms can enter the Indian market.
The Global Capability Center (GCC) model lets foreign accounting firms set up 100% owned subsidiaries in India to provide non-statutory services. This setup gives complete control over operations, quality standards, and data security.
Indian regulations allow unrestricted foreign direct investment through the automatic route for accounting and bookkeeping services, though statutory audit work remains excluded.
Notable examples include mid-tier U.S. firms like Moss Adams, RSM US, CohnReznick, and Sikich that run their own offices in Bangalore and Mumbai. The Big Four have created massive captive operations - Deloitte's U.S.-India (USI) unit now employs over 70,000 staff who support global client work.
The GCC approach serves firms well when they need to move large volumes of work offshore while keeping their methods in-house. The core team must pay attention to transfer pricing compliance since the India unit and home firm share related party status.
Many firms team up with existing Indian accounting practices through franchise or network affiliations. Networks like BDO, Grant Thornton, Baker Tilly, and Moore Global have made this model work well with member firms in India using their brand.
These partnerships range from simple alliances that share methods and client work to exclusive franchises where Indian firms follow global standards. Market entry happens faster with partners who know local compliance requirements inside out.
This path might be the only way to build an audit practice presence because Indian laws require local Chartered Accountants to sign audit reports. Direct control becomes limited since foreign firms cannot own equity in audit practices due to regulatory rules.
Joint ventures strike a balance by letting foreign and Indian entities create new companies together for service delivery. While less common in audit work because of partnership rules, this approach works great for consulting and advisory services.
KPMG Global Services started as a joint venture between KPMG US, KPMG UK, and KPMG India.
Joint ventures thrive on strong connections between home office and Indian operations. Brand integration and quality standards need careful attention. Many firms broaden their reach within India by opening main offices in metros and adding delivery centers in tier-II cities to tap new talent pools at lower costs.
Audit and attestation services in India must be provided by firms controlled by Indian Chartered Accountants. As a result, most global networks operate through locally owned Indian partnerships or LLPs affiliated with their international brand.
This model allows access to the Indian client market but comes with regulatory constraints, including restrictions on foreign ownership and profit sharing.
The Institute of Chartered Accountants of India (ICAI) issued updated Overseas Network Guidelines in 2024, providing clearer frameworks for such affiliations while preserving Indian firm autonomy.
Although not an “own operation,” it’s worth noting that some accounting firms first test India’s advantages by outsourcing work to established Indian BPO or accounting outsourcing companies.
Companies like MYCPE ONE, QX Global, Vee Technologies, Infosys BPM and many boutique providers offer outsourcing services for bookkeeping, tax prep, etc., to US/Canadian CPA firms.
Many firms initially outsource work to Indian accounting service providers to test the model. While this requires minimal upfront investment, it offers less control and scalability. Outsourcing is often used as a stepping stone before transitioning to a captive center.
A well-defined strategy will guide subsequent decisions on location, hiring, and investment.
Select the appropriate model based on services offered and regulatory requirements. Engage legal and tax advisors early to address FDI rules, permanent establishment risks, and profit repatriation.
A proper legal setup will build strong foundations and reduce your operational risks.
A. Company registration and incorporation steps
Your chosen structure determines the incorporation process. Setting up a wholly-owned subsidiary means registering a Private Limited Company under the Companies Act. Here's what you need to do:
The process is similar for an LLP under the LLP Act, where you'll need to file form LLP-2 for incorporation. The whole process takes about 3-4 weeks with proper documentation.
B. Your post-registration checklist should cover:
If your firm exports services, you should think over STPI or SEZ registration to claim tax benefits on export income.
C. Understanding ICAI's Overseas Network Guidelines
The Institute of Chartered Accountants of India (ICAI) rolled out new guidelines in 2024 about foreign accounting firm networks. These rules lay out how Indian CA firms can join global networks while following regulations.
The main points are:
Local CAs must sign audit opinions in India because foreign firms can't practice public accounting directly. Many firms use a dual-entity structure as a result - one entity handles audits (following ICAI rules) while another manages advisory services.
D. Labor law and employee welfare compliance
Indian labor laws protect both employers and employees. Your accounting firm needs:
India has updated its labor codes. You'll need to stay current with these changes. Most firms work with HR compliance experts or outsource this work to stay compliant.
E. Transfer pricing and tax documentation
Accounting firms with cross-border transactions between Indian and global offices need solid transfer pricing documentation. This means you must:
Foreign-owned accounting firms also need to file special returns like the Foreign Liabilities and Assets (FLA) statement with the Reserve Bank of India.
Your regular tax duties include corporate income tax returns, TDS (withholding tax) filings for salaries and vendor payments, and yearly MCA filings. Good compliance from day one helps you avoid penalties and builds your firm's reputation in the Indian market.
Your accounting firm's success in India depends on picking the right location and building an effective talent strategy. The right choices about your presence and talent acquisition will improve your operational efficiency and stimulate growth.
Metro cities vs. Tier-II cities
Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, and Pune have traditionally been the preferred locations for accounting firms. These metropolitan areas provide resilient infrastructure and business ecosystems where the Big Four and Global Capability Centers excel.
Recent trends show firms are changing their focus to Tier-II cities like Jaipur, Vadodara, Kochi, Chandigarh, Coimbatore, and Ahmedabad. These emerging cities offer several advantages:
Smart firms now use a hub-and-spoke model to grow. They set up their main office in a metro city for leadership and client access, while operating delivery centers in affordable locations. This setup helps cut costs without compromising service quality.
Your firm's successful cross-border collaboration depends on integrating operations and technology after building a team in India. The life-blood of this integration lies in maximizing productivity without compromising quality. Your accounting firm's growth strategy must optimize work flows between locations.
A. Defining workflows and task allocation
The best way to integrate your India team starts with standardized, process-driven tasks. Your offshore team should handle routine financial statements, tax schedule preparation, and bookkeeping entries. Their experience will grow steadily, allowing them to take on complex analytical work.
This step-by-step approach builds mutual confidence and lets your domestic team concentrate on client relationships and specialized services.
B. Collaboration tools and communication protocols
A resilient technological infrastructure enables seamless teamwork across time zones. Your team needs secure file-sharing platforms, project management software, and video conferencing tools that enable immediate collaboration.
Clear communication protocols help teams stay connected - daily check-ins for ongoing projects work well with periodic management meetings. These meetings help the India team line up with firm goals.
C. Data security and IT infrastructure
Data security cannot be compromised with sensitive financial information. Your India office should match your home operation's confidentiality and cybersecurity standards. Most firms set up secure VPN access to firm servers or implement cloud-based accounting systems.
These systems remain available globally yet protected by strict access controls.
D. Quality control and review processes
Quality assurance forms the bedrock of offshore operations. A dual-review system works best - local seniors review work completed in India first, followed by home-country managers. Many firms create centralized quality assurance teams in India that conduct additional checks before client delivery.
Sikich and other firms have noted that successful offshoring reshapes service delivery rather than just filling roles. Your accounting firm strategy can evolve beyond viewing India as a vendor. Through refined workflows that make use of skilled personnel and technology, India becomes a true extension of your home office.
Running an India office involves ongoing compliance and good governance.
Once the initial setup is stable, plan for growth and improvement. Most firms start with a modest team in India (perhaps a few dozen staff) and then scale rapidly once the model proves effective.
The experiences of others show what’s possible: e.g., BDO’s India workforce grew 400% in two years (with 40 partners added) as they ramped up offshore capabilities , and Citrin Cooperman’s India office grew 300% in three years .
Continuous improvement will maximize the benefits of your India expansion and keep your firm ahead of the curve.
At every stage, it helps to heed lessons from firms that have already trodden this path. The Big Four, for instance, have fine-tuned a two-pronged strategy in India – huge offshore centers to support global clients and robust local practices for Indian clientele.
Deloitte separated its practice into Deloitte India (for domestic work) and Deloitte US-India (USI) for U.S. client support, enabling compliance with ownership laws while still building massive scale (Deloitte USI had 70,000+ employees as of 2021).
PwC took a slightly different route by forging a joint venture between PwC India and PwC US to rapidly expand capacity; they announced 30,000 new hires in India by 2028, bringing their India headcount to ~80,000.
KPMG set up KGS as a tri-country joint initiative from the start, ensuring buy-in from multiple member firms.
These examples show that having alignment between the home office and Indian operation is key: whether through ownership structure or venture agreements – so that both sides invest in the success of the India unit.
Another lesson is the importance of branding and integration: Big Four India teams use the same methodologies and quality benchmarks as their global counterparts, which required heavy upfront training and constant communication.
Mid-tier firms have learned they can’t treat the India office as a separate “outsourcer”: firms like Grant Thornton’s Global Delivery Services emphasize seamless delivery “across time zones through our local talent pool”, essentially making location irrelevant to the client experience.
Additionally, many firms realized the value of diversifying location within India: after concentrating in one city, they opened offices in secondary cities to access new talent and reduce costs (e.g., EY and KPMG have offices in Kochi, EY in Jaipur, etc., following this strategy).
A further takeaway is the need for robust support functions: the Big Four built significant internal training academies in India and even started advising other companies on offshoring. In fact, EY India now has a team dedicated to helping organizations build their own GCCs, leveraging what EY learned in scaling its presence.
The message for new entrants: invest in training, don’t underestimate support needs (IT, HR, compliance teams in India are vital), and consider engaging experienced consultants or firms who have done this before. By studying the triumphs and missteps of those who expanded earlier, your firm can replicate successful tactics and avoid common pitfalls.
Setting up in India does not mean you are alone; there are many resources and support structures to assist foreign entrants:
A. Government Facilitation: Invest India, the national investment promotion agency, offers hand-holding to foreign companies setting up operations. They can provide information on regulations, connect you with state authorities for any incentives, and troubleshoot bureaucratic hurdles.
Many state governments have also set up single-window clearance systems and offer special incentives in IT parks or SEZs for creating jobs. For example, states may offer tax rebates or subsidized office space in technology parks for firms that meet certain employment criteria.
B. Professional Services Firms: Numerous consulting and legal firms in India specialize in market entry strategy, regulatory compliance, and outsourcing advisory. Engaging a knowledgeable local consultant or Big Four advisory team can greatly smooth the process; from entity incorporation to office location search, hiring initial staff, and ensuring legal compliance.
Some boutique firms even act as an “offshore concierge”, handling end-to-end setup: they assist in office scouting, recruitment, IT setup, and are able to act as an Employer of Record if you want to hire staff quickly before your entity is fully established. Leveraging such expertise can accelerate your ramp-up while avoiding costly mistakes.
C. Industry Associations: Joining industry groups can provide valuable support and networking. NASSCOM, for instance, is a major association for tech and business process outsourcing companies in India; many GCCs (including those of accounting firms) are members and share best practices through NASSCOM forums.
There are also chambers of commerce (like Indo-American Chamber of Commerce, Indo-Canadian Business Chamber) that can provide guidance and connect you with peers and advisors.
ICAI – the Institute of Chartered Accountants of India, is another key body. While it primarily governs local professionals, as a foreign firm you may need to engage with ICAI for audit practice issues or to understand new guidelines (like the Overseas Network Guidelines). Maintaining a good relationship with ICAI and understanding their expectations can help in navigating the professional landscape.
D. Talent Development Partnerships: Given the importance of talent, firms can tap into the ecosystem to build their pipeline. Partner with universities or institutes to sponsor programs. e.g., fund a CPA scholarship for top accounting students, or set up a training academy for new graduates that feeds into your firm.
Some companies collaborate with institutions like the Big Four-affiliated skill centers or even have ICAI’s support in conducting workshops. These efforts build your brand among future recruits and ensure a steady talent supply.
E. Offshoring Specialists: As mentioned, if you want to “dip your toes” first, companies (including some run by ex-Big Four professionals) offer outsourced accounting services or staff augmentation. They can provide you a team quickly while you retain oversight.
For example, there are providers advertising 60%+ cost savings for Canadian firms by using Indian teams.
While ultimately you likely want your own captive team, these providers can either serve interim needs or even manage your India ops under a build-operate-transfer model (where they help set up a team and later transfer it in-house to you). This kind of support can reduce initial risk.
F. Internal Company “GCC” Teams: If your firm is large enough, you might already have in-house experience with offshoring in other domains (like IT or tax). Leverage any internal knowledge.
For example, some accounting firms expanding now are doing so after seeing success with outsourcing tax prep to India via third parties; they are essentially scaling that concept in-house. Use those lessons.
Moreover, within India, once you’re present, you can share services across functions: your accounting GCC could share an office or HR resources with, say, your firm’s existing IT development center if one exists.
In summary, don’t hesitate to seek support – many organizations (governmental and private) are literally in the business of helping companies succeed in India. By utilizing these resources, you can reduce setup time and avoid reinventing the wheel.
Setting up operations in India offers huge advantages that go way beyond the reach and influence of the original cost savings. Your accounting firm's expansion into India can boost operational capabilities and drive eco-friendly growth.
India has a vast pool of over 430,000 qualified accounting professionals. The country produces English-speaking accountants who have strong technical foundations, including Indian Chartered Accountants and U.S. CPAs practicing, many with global certifications or familiarity with US GAAP and IFRS.
Indian accountants' salaries are nowhere near North American levels, which results in 40-60% cost savings. A finance professional in an Indian GCC costs about $23,000 annually - substantially lower than similar positions in Western countries.
As one education leader noted, “There is always the need for trained talent with industry exposure, and cost arbitrage comes into play when you operate from India” .
The financial perks of Indian operations make a strong case. North American accountants earn much more than their Indian counterparts, which leads to 40–60% cost savings on average. Your firm saves by a lot on office expenses, benefits, and training costs due to lower price levels in India.
Recent industry data shows that a finance professional in an Indian Global Capability Center (GCC) costs just $23,000 per year - much less than similar roles in Western cities.
These savings help firms pump money back into growth projects, upgrade their tech, or enhance client services without quality loss. Your accounting firm's strategy becomes more flexible with extra funds ready to use.
India's time zone advantage (about 10 hours ahead of Eastern Time) creates a natural "follow-the-sun" work model. Teams in India complete tasks overnight for North American clients. This leads to quicker delivery of audit procedures, tax preparation, and bookkeeping services.
The round-the-clock workflow helps teams meet tight deadlines during busy seasons.
The deep talent pool makes scaling easier as your practice grows. Most firms begin with basic services and add specialized teams over time - like a dedicated tax return group or forensic accounting unit.
India’s workforce isn’t just large and cost-effective – it’s highly qualified. Indian accountants often undergo rigorous training (the Indian CA is a tough qualification) and many pursue additional credentials like U.S. CPA or CMA for global roles.
Big Four firms report that their India teams comprise not only accountants but also IT and analytics experts to support tech-driven finance functions.
The result is access to specialized skills (for example, IFRS experts or data analytics professionals) that might be scarce or expensive at home. Firms like EY note that India’s talent includes “business consultants and technology architects” who lead end-to-end transformation projects for global clients.
With proper training and integration, Indian teams consistently deliver accurate, compliant work, making them a trusted extension of the home office .
Economical resources let your firm explore specialized services that might be too expensive otherwise. Many accounting firms have their Indian teams build expertise in new areas like data analytics, technology consulting, or ESG reporting.
An Indian presence does more than support international work - it opens doors to the world's fifth-largest economy. India's professional services market keeps growing faster, creating chances to serve local clients and Asia-Pacific businesses.
The Indian government welcomes foreign investment in service sectors, making it an attractive market for ambitious accounting firms.
Setting up an accounting firm’s operations in India is a multi-faceted endeavor, but one that yields high rewards. With careful planning and execution, a North American CPA firm can build a thriving India office that mitigates talent shortages, cuts costs, and enhances global delivery capabilities.
The experiences of the Big Four and numerous mid-sized firms underscore this opportunity: India has already become the “hub for accounting talent” for many global firms.
Key success factors include choosing the right entry model for your needs, navigating regulatory requirements diligently, and integrating the India team into your firm’s culture and processes.
There will be challenges along the way, such as managing quality across time zones or complying with professional restrictions, but none are insurmountable with the right strategy.
In fact, recent regulatory shifts (like ICAI opening doors to formal global firm associations) are making it even more conducive to operate in India. By learning from those who’ve gone before and leveraging local support systems, new entrants can avoid pitfalls and accelerate their setup.
In the end, establishing an India presence is not just a cost play; it’s about building resilience and scalability into your practice. It enables your firm to operate 24/7, tap into diverse expertise, and even explore emerging markets. One might say that a well-run India office becomes the engine that powers growth and innovation for the home firm.
As the demand for accountants grows and the world becomes more interconnected, India will continue to be a strategic destination for accounting and CPA firms worldwide.
Armed with a detailed roadmap and insights from industry leaders, your firm can confidently embark on this expansion, turning the India opportunity into a success story for years to come.
Establishing an accounting firm's presence in India offers transformative opportunities beyond simple cost reduction, providing access to over 430,000 qualified professionals while reducing operational expenses by 50-70%.
This strategic expansion transforms service delivery models while creating pathways to new markets and specialized service lines, positioning firms for sustainable competitive advantage in the global accounting landscape.
MYCPE ONE is the trusted partner for over 3,000 CPA and accounting firms worldwide, empowering them to scale, innovate, and achieve operational excellence. With a decade of experience, a unified platform, and 3000+ team members across 40+ offices.
MYCPE ONE delivers comprehensive offshoring, CPE and L&D, website solutions, digital marketing services, M&A advisory, and daily news insights - all designed to help firms attract top talent, maintain compliance, and drive sustainable growth.
Backed by SOC 2, ISO 27001, and GDPR certifications, MYCPE ONE ensures the highest standards of data security and client support for every firm.
Establishing a presence in India offers significant cost savings (40-60% on average), access to a large pool of qualified accounting professionals, 24/7 productivity due to time zone differences, and opportunities for expanding into new service lines and markets.
The main entry models include wholly-owned subsidiaries (GCC model), network affiliations or franchises, joint ventures, and dual-entity structures. Each model offers different levels of control and benefits depending on the firm's goals and regulatory considerations.
Firms should carefully navigate company registration processes, adhere to ICAI's Overseas Network Guidelines, comply with labor laws and employee welfare regulations, and maintain proper transfer pricing and tax documentation. Engaging local advisors is often recommended to ensure full compliance.
Effective strategies include partnering with universities, establishing training academies, building a strong employer brand, implementing rigorous interview processes, and providing comprehensive training on firm-specific methodologies and standards.
Successful integration involves defining clear workflows and task allocation, implementing robust collaboration tools and communication protocols, ensuring strong data security measures, and establishing thorough quality control and review processes. Starting with standardized tasks and gradually transitioning to more complex work is often an effective approach.
Christopher is the Director of Client Relations and Business Development at MYCPE ONE, a leader known for his energy and people-first approach. Chris leads from the front mentoring teams, driving growth, and building lasting client relationships. With over a decade of experience in sales, coaching, and business strategy, he has helped 5,000 CPAs nationwide overcome challenges and discover new opportunities. Chris is a familiar presence at major accounting conferences, representing MYCPE ONE and shaping meaningful industry partnerships. Passionate about leadership and professional growth, he continues to inspire teams and professionals to reach their highest potential.
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