Registration of ca firm

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Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2012 Does a firm of chartered accountants not carrying audit function but carrying only compliance related services, need to be registered with ICAI?

Ajay Mishra

Ajay Mishra (Expert)
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10 July 2012 Hi

• The Council has decided that the members in part time practice shall not be entitled to perform attest function w.e.f. 1-4-2005. The Council in this connection also clarified that the attest function would cover services pertaining to audit, review, certification, agreed upon procedures and compilations as defined in the framework of statements on standard auditing practices and guidance notes on related services published in the July, 2001 issue of the Institute journal. The Council has also decided that a member in practice despite being a partner in firm within India and also employed outside the country may be permitted to undertake attest functions outside India so long as the said member remains outside India and during such stay abroad, his/her status also continues to be "2" in the Institute’s record.
• A member who is not entitled to perform attest function shall not be entitled to train the articled assistants.

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2012 Hi Ajay,
Thanks for your guidance. My query actually pertains to the CAs already having a audit firm registered with ICAI who wants to carry all the compliance related works such as filing income tax returns excise returns, vat returns through a separate firm which shall be registered with Registrar of firms. But does this new firm also needs to be registered with ICAI?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Great question! Here's the clarification regarding registration of a CA firm with ICAI when the firm carries out only compliance services (like income tax filing, excise returns, VAT returns) and no audit work:

Key points:
ICAI Registration Requirement:
As per ICAI regulations, any partnership or firm where a Chartered Accountant(s) practices professional services must be registered with ICAI, regardless of whether it carries out audit work or only compliance-related services.
This means even if the new firm does not conduct audit but provides tax, accounting, or other compliance services, it needs to be registered with ICAI.
Separate Firm Registration:
If you form a new partnership firm registered with the Registrar of Firms (under the Indian Partnership Act), and the partners are CAs, the firm must be registered with ICAI to practice as a CA firm.
The registration with ICAI helps the firm to comply with professional standards, guidelines, and ethical obligations.
Why Register?
To obtain a Certificate of Practice (COP) for the firm.
To ensure the firm can legally represent clients in various matters, including tax filings.
For compliance with ICAI's Code of Ethics and professional standards.
If CA already has an audit firm:
Even if the CA is associated with one audit firm registered with ICAI, a separate firm doing compliance work also needs separate registration with ICAI.
Each firm is treated as a separate entity and must be registered individually.
Summary:
Situation Need to Register with ICAI?
CA firm doing audit + other services Yes
CA firm doing only compliance services (no audit) Yes
Separate partnership firm with CA partners doing compliance Yes
Individual CA providing services without firm Registration as an individual practitioner

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