Ethics for cas
This query is : Resolved
14 June 2013
Can two CA firms have same address? Means Two
firms can be operated from one place
firms can be operated from one place
15 June 2013
Yes, a member can have a branch office. In terms of Section 27 of the Act, if a Chartered Accountant in practice or a firm of Chartered Accountants has more than one office in India, each one of such offices should be in the separate charge of a member of the Institute. Failure on the part of a member or a firm to have a member in charge of its branch and a separate member in case of each of the branches, where there are more than one, would constitute
Professional misconduct. However, exemption has been given to members practicing in hill areas subject to certain conditions. The conditions are:
1. Such members/firm be allowed to open temporary offices in a city in the plains for a limited period not exceeding three months in a year.
2. The regular office need not be closed during this period and all correspondence can continue to be made regular office.
3. The name board of the firm in the temporary office should not be displayed at times other than the period such office is permitted to function as above.
4. The temporary office should not be mentioned in the letter-heads, visiting cards or any other documents as a place of business of the member/firm.
5. Before commencement of every winter it shall be obligatory on the member/firm to inform
the Institute that he/it is opening the temporary office from a particular date and after the office is closed at the expiry of the period of permission, an intimation to that effect should also be sent to the office of the Institute by registered post. The above conditions apply to any additional office situated at a place beyond 50 km from the municipal limits in which any office is situated. It is to be noted that the requirement of Section 27 in regard to a member being in charge of an office of a Chartered Accountant in practice or a firm of such Chartered Accountants shall be satisfied only if the member is actively associated with such office. Such association shall be deemed to exist if the member resides in the place where the office is situated for a period of not less than 182 days in a year or if he attends the said office for a period of not less than 182 days in a year or in such other circumstances as, in the opinion of the Executive Committee, establish such active association. It is necessary to mention that the Chartered Accountant in charge of the branch of another firm should be associated with him or with the firm either as a partner or as a paid assistant. If he is a paid assistant, he must be in whole time employment with him.
However, a member can be in charge of two offices if they are located in one and the same accommodation
Professional misconduct. However, exemption has been given to members practicing in hill areas subject to certain conditions. The conditions are:
1. Such members/firm be allowed to open temporary offices in a city in the plains for a limited period not exceeding three months in a year.
2. The regular office need not be closed during this period and all correspondence can continue to be made regular office.
3. The name board of the firm in the temporary office should not be displayed at times other than the period such office is permitted to function as above.
4. The temporary office should not be mentioned in the letter-heads, visiting cards or any other documents as a place of business of the member/firm.
5. Before commencement of every winter it shall be obligatory on the member/firm to inform
the Institute that he/it is opening the temporary office from a particular date and after the office is closed at the expiry of the period of permission, an intimation to that effect should also be sent to the office of the Institute by registered post. The above conditions apply to any additional office situated at a place beyond 50 km from the municipal limits in which any office is situated. It is to be noted that the requirement of Section 27 in regard to a member being in charge of an office of a Chartered Accountant in practice or a firm of such Chartered Accountants shall be satisfied only if the member is actively associated with such office. Such association shall be deemed to exist if the member resides in the place where the office is situated for a period of not less than 182 days in a year or if he attends the said office for a period of not less than 182 days in a year or in such other circumstances as, in the opinion of the Executive Committee, establish such active association. It is necessary to mention that the Chartered Accountant in charge of the branch of another firm should be associated with him or with the firm either as a partner or as a paid assistant. If he is a paid assistant, he must be in whole time employment with him.
However, a member can be in charge of two offices if they are located in one and the same accommodation
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17 June 2013
thanks for reply,but
Dear Sir,
I am not talking about a branch office. What i mean to say was can two firms have same office address.. Exmpl: ABC & Co and ADF & Co have the same address....can it be?
Dear Sir,
I am not talking about a branch office. What i mean to say was can two firms have same office address.. Exmpl: ABC & Co and ADF & Co have the same address....can it be?
21 July 2024
Yes, two separate firms or entities can indeed have the same office address. There are several scenarios where this can happen:
1. **Shared Office Spaces**: Many firms, especially smaller ones or startups, operate from shared office spaces or business centers where multiple companies have their offices in the same building or even the same floor.
2. **Business Complexes**: In larger office buildings or business complexes, it's common for multiple firms to have offices in the same building, each with their own designated address and office space.
3. **Virtual Offices**: Some firms use virtual office services where they share a business address with other companies for official correspondence purposes, while their operations may be elsewhere.
4. **Branch Offices**: Even within the same company, different branches or offices (e.g., regional offices) may share the same address for administrative or operational convenience.
### Legal and Practical Considerations:
- **Distinct Identity**: Each firm must maintain its own distinct legal identity, despite sharing an address. This means they should have separate registrations, Tax Deduction Account Number (TAN), Goods and Services Tax Identification Number (GSTIN), etc.
- **Communication Address**: While firms can share a physical office address, it's essential to ensure that official communications, legal notices, and registrations are correctly addressed to each firm to avoid confusion or legal complications.
- **Compliance**: Ensure that each entity complies with local laws and regulations regarding business registration, taxation, and reporting, regardless of sharing an address.
In summary, it is permissible and practical for two firms (like ABC & Co. and ADF & Co.) to have the same office address, provided they maintain separate legal identities and fulfill all regulatory requirements appropriately.
1. **Shared Office Spaces**: Many firms, especially smaller ones or startups, operate from shared office spaces or business centers where multiple companies have their offices in the same building or even the same floor.
2. **Business Complexes**: In larger office buildings or business complexes, it's common for multiple firms to have offices in the same building, each with their own designated address and office space.
3. **Virtual Offices**: Some firms use virtual office services where they share a business address with other companies for official correspondence purposes, while their operations may be elsewhere.
4. **Branch Offices**: Even within the same company, different branches or offices (e.g., regional offices) may share the same address for administrative or operational convenience.
### Legal and Practical Considerations:
- **Distinct Identity**: Each firm must maintain its own distinct legal identity, despite sharing an address. This means they should have separate registrations, Tax Deduction Account Number (TAN), Goods and Services Tax Identification Number (GSTIN), etc.
- **Communication Address**: While firms can share a physical office address, it's essential to ensure that official communications, legal notices, and registrations are correctly addressed to each firm to avoid confusion or legal complications.
- **Compliance**: Ensure that each entity complies with local laws and regulations regarding business registration, taxation, and reporting, regardless of sharing an address.
In summary, it is permissible and practical for two firms (like ABC & Co. and ADF & Co.) to have the same office address, provided they maintain separate legal identities and fulfill all regulatory requirements appropriately.
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