Can a practicing ca form llp

1.Yes, LLP is absolutely allowed.

ICAI encourage LLP of its members. ( ICAI journal has hinted many times )

2. Only CA can be the partners in a LLP.

You may float a private Limited Company.The objectives should be business consultancy. Then, make the Non CA a director and an employee. Also, divide the shareholding among CAs, Non CAs, as decided. Now, you have a partnership with Non CAs. But in legality, its a Private Company. Legal Compliance will be more than a partnership firm.

But this arrangement helps in Tax Planning( If you know what I mean). But this business consultancy company cannot audit any financial statements.