Why is a US Certified Accountant required in India?

The History:

The American companies in India started their dream runs during 1990 when they reaped huge profits. The companies have seen double-digit year-on-year growth in various sectors like Technology, Colas, Agriculture, Automobiles, Equipment, Finance, and Banking. According to the American Chamber of Commerce in India, their membership base has soared up from zero in 1992 to more than 500 till date. The United States is India’s second largest source of FDI, second largest trade partner after EU and the largest services export destination today. Compared to this, the business with the UK or Australian companies in India is limited.

Why did American Companies come to India?

The biggest reason is the high potential of Indian market and economy. Along with China, India is the only fast-growing country that can make a difference to the majority of the companies’ bottom lines. Besides, established big brands have already impregnated the U.S. and European markets. But, the Indian market still offers a lot of scopes and spaces for those to grow. India is also a large depository of skilled yet cheap manpower.  Hence, it becomes easy for the American companies to optimize their productions in India

Where is the need for American Certified Accountants?

Any company raising funds in the USA, parenting a USA based subsidiary, listed in USA stock exchanges or originating in the USA needs to comply with the US Securities and Exchange Commission (https://www.sec.gov/) standards. All-SEC complying companies will require a US CPA or CMA certified accountant for their internal accounting and financial reporting. Similarly, any company rendering Financial Services to SEC complying entities should also comply with the SEC regulations, thus they too require CPAs/CMAs (US GAAP accountants) to this end.

Most MNCs and large Indian companies hire CMAs and CPAs with the above intention. The demand has increased to such a level that for insufficiency of US CPAs and CMAs in India, the MNCs and Big 4s here are recruiting commerce graduates and Indian CAs and getting them trained either for full CPA/CMA certification or US GAAP, IFRS specifically as per the requirement.

List of Major American Companies in India:

There are a number of American companies in India which have been doing business successfully over the years. Following are some of the popular American companies in India:

  • Agilent
  • Agro Tech
  • American Express
  • Amway
  • Avaya
  • Caltex
  • Caterpillar
  • CB Richard Ellis
  • Cisco
  • Citigroup
  • Coca Cola
  • Cognizant
  • Colgate Palmolive
  • CSC
  • Cummins
  • Discovery
  • Dupont
  • EDS
  • Eli Lilly
  • Emerson Electric
  • EXL
  • Federal Express
  • Ford
  • Franklin Templeton
  • GE
  • General Motors
  • Gillette
  • Honeywell India I
  • BM
  • Intel
  • Johnson & Johnson
  • JPMorgan
  • Kellogg India
  • Kimberly Clark
  • Kodak
  • McDonalds
  • Metlife India
  • Microsoft
  • Morgan Stanley
  • New York Life
  • Ogilvy and Mather
  • Oracle
  • Pepsi co
  • Pfizer
  • Pizza Hut
  • Sun Microsystems
  • Texas
  • Tecumseh
  • Timex
  • Tyco
  • UPS India
  • Visteon
  • Whirlpool
  • Xerox Modicorp

 An article by Logic School of International Studies, the premium study center for US CMA and CPA courses in Live Online / Classroom mode. 

Contact the writer at bhaswati@logiccpacma.com.

 

 

 

 

 

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