How many firms CA's can open?

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CA Kapil Thacker (Querist)
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20 January 2010 suppose If we three friends wants to start practice as CA we want propritership firm as our own name. also we want to built partnership firm.

can we built as many firms as we can?

Eg. A & B partnership firm
b & c partnership firm
A & c partnership firm
and also A & B & c partnership firm.

reply me as early as possible

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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20 January 2010 if you are enter in partnership firm you can'nt practice in your own name.
for creation partnership firm firstly you need to permestion with ICAI for firm name and after that you will creat firm.

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CA Kapil Thacker

CA Kapil Thacker (Querist)
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22 January 2010 Thanks sir

please will you clarify in detail with example

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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28 July 2024 Certainly! When it comes to Chartered Accountants (CAs) in India, the regulations around opening firms are quite specific. Here’s a detailed breakdown of how you can structure your practice as CAs, including the limits on forming firms:

### 1. **Proprietorship Firms**

A Chartered Accountant (CA) can open a proprietorship firm on their own. This is a single-owner firm where the individual CA is solely responsible for all aspects of the business.

**Example:** If A is a CA and wants to start a practice alone, they can open a proprietorship firm named “A & Co.”

### 2. **Partnership Firms**

CAs can also form partnership firms. These are firms where two or more CAs come together to practice. The Chartered Accountants Act, 1949, and the regulations by the Institute of Chartered Accountants of India (ICAI) govern these firms.

**Example 1:** A and B, both CAs, can form a partnership firm named “A & B Associates.”

**Example 2:** B and C can form another partnership firm named “B & C Consultants.”

**Example 3:** A, B, and C can also form a partnership firm named “A, B & C Chartered Accountants.”

### Key Points to Note:

1. **Number of Firms:** While CAs can form multiple firms, there are some constraints:
- **Proprietorship Firms:** A CA can have only one proprietorship firm.
- **Partnership Firms:** Multiple partnership firms can be formed, but each partnership firm must comply with ICAI regulations. All partners in a partnership firm need to be registered CAs, and the firms need to be distinct in their registrations and practice areas.

2. **No Overlap in Firms:** The same CAs cannot be partners in more than one firm with identical names or in a manner that creates confusion. Each partnership firm should be clearly distinct in its composition and practice.

3. **Registration and Compliance:** All firms must be registered with the ICAI, and they need to follow the guidelines provided by the ICAI in terms of practice and compliance.

### Example Scenario:

Let's say CAs A, B, and C want to start their own practices.

- **Proprietorship Firms:**
- A can have a proprietorship firm named “A & Co.”

- **Partnership Firms:**
- A and B can form a partnership firm named “A & B Associates.”
- B and C can form a partnership firm named “B & C Consultants.”
- A, B, and C can form a partnership firm named “A, B & C Chartered Accountants.”

In this scenario, A, B, and C have formed different entities. Each partnership firm is distinct, and their formation complies with the ICAI regulations.

### Summary

You and your friends can form multiple firms as long as:
- Each firm is distinctly registered and follows ICAI guidelines.
- You do not create confusion or overlap between the firms.

If you need specific advice or have unique circumstances, consulting with a legal expert or the ICAI directly would be a prudent step.