No. of partnerships

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 Hello
Is there any restriction on the no. of partnerships a CA can enter into.

Can a CA be a proprietor of his own firm and be a partner in two or more other firms??

If yes, please give a reference of any such notification.

Rupesh Jain

Rupesh Jain (Expert)
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18 June 2013 i hope you want to enter in partnership for bank audit, govt audit.
for above case you only enter in one partner ship.

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 Yes for bank and govt.

so can it be one proprietorship + one partnership?

and please give a reference of notification

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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04 August 2024 As per the regulations set forth by the Institute of Chartered Accountants of India (ICAI), there are specific guidelines regarding the number of partnerships a Chartered Accountant (CA) can enter into. Here’s a detailed overview:

### ICAI Regulations on Partnerships

1. **Regulations for CAs in Practice:**
- **Regulation 53:** As per the Chartered Accountants Regulations, 1988, a CA can have a sole proprietorship or be a partner in a firm. The regulation also specifies that a CA in practice cannot have more than one firm in which they are a partner.
- **Regulation 49:** This regulation states that a CA cannot engage in the practice of accountancy in more than one firm of which they are a partner.

2. **Proprietorship and Partnerships:**
- A CA can be a sole proprietor of their own firm and be a partner in one other firm.
- However, if you are a partner in a firm, you cannot simultaneously be a partner in multiple other firms or practices. The only exception is if the second firm is a continuation of a firm where you are already a partner, in which case the firm should not be in direct competition with each other.

### Specific Guidelines and Notifications:

- **ICAI Regulation 53:** States that no CA shall have more than one firm in which they are a partner.
- **Regulation Text:** "No Chartered Accountant in practice shall, without the permission of the Council, be a partner of more than one firm."

- **Proprietorship Firm with Partnership:**
- A CA can operate a sole proprietorship and simultaneously be a partner in one other firm, provided they adhere to the regulations and obtain any required permissions from the ICAI.

- **Notification and Circulars:**
- You can refer to the **Chartered Accountants Act, 1949** and the **Chartered Accountants Regulations, 1988** for more detailed information.
- Notifications and circulars issued by ICAI from time to time might provide additional clarity on this subject.

### Reference to Notifications and Regulations:

1. **Chartered Accountants Regulations, 1988:**
- Available on the [ICAI website](https://www.icai.org) under the "Regulations" section.

2. **ICAI Notifications:**
- Look for any specific circulars or notifications from ICAI regarding practice regulations and partnership rules.

### Summary:

- A CA can be a proprietor of their own firm and also be a partner in one other firm.
- The regulation prohibits a CA from being a partner in more than one firm without permission.

For the most accurate and detailed information, you should consult the ICAI’s official regulations and possibly seek guidance directly from ICAI’s professional development or regulatory departments.

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