10 October 2016
Proprietorship + Partner in a firm
Presently i m proprietor of my firm. soon i will be a partner of newly floated partnership firm. my queries are, 1. can i continue to be a proprietor and partner simultaneously?? is it allowed?? 2. If it is allowed, will i be a full time practitioner in both the firm?? or will i be considered as part time in both the firms?? 3. Will i be able to continue my attest function in both the firms?? 4. so far as bank audit is concerned, which firm amongst the two will not be able to get the bank audit?? 5. presently all the CAs who are interested in becoming partner in new firm are proprietor of their own firms. should we float a new partnership firm or we all should merge and convert the senior most proprietor firm into a partnership firm?? What should be the best way of having this partnership looking to the empanelment criteria of CAG (Bank audit, PSU audit etc.)??
10 October 2016
01. Yes, provided there is no any restrictive clause of the newly created partnership. ICAI does not hold any restriction 02. the full time or part time is immaterial....so far as proprietor and/or partnership is concerned. It is material for type of membership. In such situation, ICAI will consider you as member in full time practice. 03. yes.....(the no. of audits will be considered combined together) 04. Choice is yours.....any one can apply for bank audit empanelment....either partnership or your proprietorship 05. Choice is yours..... you may look at the GOODWILL, if any, and then decide about the name. (you can even keeping the name same, convert the proprietorship into partnership......so that name approval step can be reduced)
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