01 June 2021
Hi All, My friend is A Chartered Accountant in practice as a Proprietor since last 3 years and he is having a trade name registered with ICAI. Recently I had joined him as a partner without changing the trade name registered with ICAI. My question is if we want to change the trade name now then whether our existing firm with old FRN will get continued or we will get new firm name with new FRN?? Whether my partners proprietorship experience of 3 years will get continued in new firm?? Whether the Experience will count for bank audit empanelment under Partnership Firm?? Kindly suggest me whether I should change my firm name or not?
06 July 2024
When you change the trade name of your firm registered with ICAI, here are the considerations and implications:
1. **Continuity of Firm Registration (FRN)**: - If you change the trade name of your firm, your existing Firm Registration Number (FRN) will continue to be valid. The FRN is tied to the firm entity itself, not just the trade name. - Therefore, you will not get a new FRN when changing the trade name.
2. **Continuation of Partner's Proprietorship Experience**: - The experience of your partner as a Chartered Accountant in practice as a Proprietor for the past 3 years will count towards the overall experience of the firm, even after changing the trade name. - This experience is valuable for empanelment with banks and other regulatory bodies, as it demonstrates the firm's expertise and track record.
3. **Impact on Bank Audit Empanelment**: - The experience accumulated by your partner during the proprietorship period will be considered when applying for bank audit empanelment under the partnership firm. - Banks typically look at the cumulative experience and expertise of the firm's partners, irrespective of whether there has been a change in the firm's name.
4. **Decision to Change Firm Name**: - Whether you should change the firm name depends on various factors, including branding, market perception, and any strategic reasons you may have. - Changing the trade name involves updating records with ICAI and possibly other regulatory bodies. Ensure compliance with all relevant regulations and notify clients and stakeholders about the change.
5. **Procedure for Changing Trade Name**: - Contact ICAI for the specific procedure to change the trade name of your firm. - Prepare necessary documentation, such as a resolution of partners, updating partnership deed if required, and filing the necessary forms with ICAI. - Follow the guidelines and timelines provided by ICAI to ensure smooth processing of the name change.
In summary, your firm's FRN will not change when you update the trade name registered with ICAI. Your partner's 3 years of experience as a Chartered Accountant in practice will continue to be recognized, and this experience will count towards bank audit empanelment under the partnership firm. Evaluate whether changing the firm name aligns with your business goals and proceed accordingly with proper documentation and compliance.
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