Partner in llp

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hetal

hetal (Querist)
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05 March 2014 CAN CA IN PRACTICE BECOME A DESIGNATED partner/PARTNER IN A LLP

Ajit J Sharma

Ajit J Sharma (Expert)
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06 March 2014 Yes, a practising CA can become the DP/ Partner in a LLP

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hetal

hetal (Querist)
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06 March 2014 thaks sir for your reply but i would like to know that if CA in practice become designated partner in LLp profit of LLP recevied than code of conduct of will not affect?is there any notification is available for it? if yes please provide link.

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Asha Kanta Sharma

Asha Kanta Sharma

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09 August 2024 When a Chartered Accountant (CA) in practice becomes a designated partner in a Limited Liability Partnership (LLP), it is important to consider the implications of the Institute of Chartered Accountants of India (ICAI) Code of Ethics and other regulatory guidelines.

### **Code of Conduct and Designated Partners in LLPs**

**1. **ICAI Code of Ethics**:
- The ICAI Code of Ethics outlines the professional conduct and ethical behavior expected from CAs. This code applies to all members, including those who are in practice and those who become partners in LLPs.

**2. **Implications for CAs Becoming Designated Partners in LLPs**:
- **Conflict of Interest**: The Code of Ethics emphasizes the importance of avoiding conflicts of interest. A CA must ensure that their role as a designated partner in an LLP does not create any conflict with their professional duties and responsibilities.
- **Independence**: The CA must maintain independence and objectivity in their professional work. This includes ensuring that the role in the LLP does not compromise their ability to perform their professional duties impartially.

**3. **Regulatory Guidelines and Notifications**:
- **ICAI Guidelines**: The ICAI provides guidelines and notifications about the involvement of CAs in LLPs. Specific rules and guidelines can be found in the ICAI's official documents and notifications.
- **Relevant Notifications**: Notifications related to the Code of Ethics and professional conduct can be accessed through the ICAI's official website.

**4. **Key Notifications and Resources**:
- **ICAI Code of Ethics**: The detailed Code of Ethics can be found on the ICAI website, which includes guidelines on professional conduct and ethics.
- [ICAI Code of Ethics](https://www.icai.org/post.html?post_id=17138)

- **ICAI Circulars and Notifications**: Specific circulars and notifications issued by ICAI can provide additional details on the roles and responsibilities of CAs in LLPs.
- [ICAI Notifications and Circulars](https://www.icai.org/resources/notification.html)

### **Summary**

1. **Professional Conduct**: A CA who becomes a designated partner in an LLP must ensure compliance with the ICAI Code of Ethics, particularly concerning conflicts of interest and independence.

2. **Notification Access**: For specific guidelines and notifications regarding the involvement of CAs in LLPs, refer to the ICAI website and its Code of Ethics section.

3. **Consultation**: It is advisable for CAs to consult with ICAI or a professional advisor to ensure that their role in the LLP adheres to all ethical and professional standards.

By maintaining adherence to the ICAI's guidelines and regulations, CAs can effectively manage their roles in LLPs while ensuring compliance with the Code of Conduct.