Manager - Finance & Accounts
58217 Points
Joined June 2010
Hi Shomin,
Buying a CA firm involves some important considerations, whether it’s a one-time payment or a royalty arrangement. Here are some key points to keep in mind:
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Legal & Regulatory Compliance:
Ensure the firm’s ownership transfer complies with ICAI (Institute of Chartered Accountants of India) rules and local laws.
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Due Diligence:
Check the firm’s client base, pending liabilities, ongoing contracts, employee agreements, and reputation.
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Payment Structure:
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Agreement Drafting:
Have a detailed agreement covering scope, payment terms, liabilities, confidentiality, and non-compete clauses.
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Tax Implications:
Consider tax on goodwill transfer and stamp duty on agreements.
If you want, I can help you draft a checklist or a basic sale agreement template. For more personalized advice, I recommend consulting a CA or legal professional.
Feel free to share more details or ask any specific questions! And for privacy, better avoid sharing your email publicly here.