Transfer in Second Year

To transfer your CA articleship during the second year, you must understand that the process is more restrictive than in the first year. Unlike the first year, you cannot transfer for personal reasons like a lack of exposure; you must have a valid, documented reason approved by the ICAI.

Approved Grounds for Transfer

ICAI permits transfers in the second or third year only under specific circumstances, supported by documentation:

• Medical Grounds: Requiring a minimum of three months' break in articleship (must be supported by a medical certificate from a Government Hospital).

• Relocation: Transfer of a working parent or the articled assistant to another city (at least 50 km away). Requires proof of relocation or a transfer order.

• Firm-Related Issues:

  • Death of the Principal.

  • The Principal ceases to be in practice or their name is removed from the Register of Members.

  • The Principal’s firm shifts to a new location more than 50 km away.

  • Irregular or non-payment of stipend (as per Regulation 67).

• Other: Desire to complete the balance period of training outside India or in cases of misconduct involving moral turpitude.

Step-by-Step Procedure

1. Obtain Prior Approval: Before filing any forms or speaking to your principal about signing documents, you must first apply for permission from the ICAI. Submit a written request on plain paper to the ICAI along with the supporting evidence (self-attested) for your specific ground.

2. Inform Your Principal: Once you have obtained ICAI's consent, formally inform your current principal in writing. Provide adequate notice (typically 2–4 weeks) to maintain professional relations.

3. File Form 109: After receiving ICAI approval and notifying your principal, you must fill out Form 109 (Termination Form) on the ICAI SSP Portal. This form requires the signature of your current principal.

4. Re-Register: Once the transfer is approved and Form 109 is processed, you can register with a new principal by filing Form 102 (Deed of Articles) and Form 103 (Registration) within 30 days.

Important Tips

• Document Everything: Keep copies of all correspondence, notice letters, and the ICAI approval letter.

• Avoid Unauthorized Stoppage: Do not stop attending the office until your transfer is formally processed and approved, as this can lead to the de-recognition of your articleship period.

• Disputes: If your principal refuses to sign Form 109 despite valid grounds and ICAI approval, you may need to escalate the matter to your local ICAI Regional Office.

Summary: Transferring in the second year requires a valid, documented reason (such as medical issues or relocation) and prior written approval from ICAI. Once approved, you must file Form 109 with your principal's signature before re-registering with a new firm.

CA Articleship Transfer Rules Explained

This video provides a concise overview of the requirements and the professional approach needed to navigate a transfer in the second year of your articleship.