Question ID :
44467
Can a CA be a Full time Partner in CA firm along with being proprietor in his existing proprietorshi
Hi, Since 2020, I have held a COP and worked as a sole proprietor. I have been a member since 2019. So my experience is 3 years from COP and 4 years from becoming a CA member.
My friend is also a sole proprietor and an FCA with more than 5 years of experience in audits.
We want to form a partnership firm.
Q1. Can we both become full-time partners in the new firm and proprietors of our respective existing sole proprietorship firms at the same time? Whether ICAI allows it?
The address of the firm will be the same as the address of one of the proprietorship firms, so technically there will be one head of charge for two firms, i.e., a partnership firm and a proprietorship firm.
Further, we will have 3 FRNs, i.e., 2 proprietorship firms and 1 partnership firm.
(If proprietor and partner is not allowed, we will close the our proprietorship firm)
Q2.
Whether our partnership firm (as mentioned above) will be eligible for audits, if the criteria are as follows:
"The Auditor / Audit firm or at least one of the partners should have a minimum of 5 years’ experience in carrying out audits"
Q3. To qualify the above criteria of 5 years' experience, shall we convert the proprietorship of my friend (which is having experience of more than 5 years) into partnership firm adding me as a partner
or
shall form a new partnership firm?
Basically, will the individual experience of partners be counted as the experience of the firm?
Posted by
YASH SUNIL SHAH
on
Apr 14, 2023
Filed Under
MISC.
Yes. CA can be partner is CA firm and proprietor of his own firm simultaneously . But at least one partner should be fully associated with the firm, otherwise such firm will not be eligible to be empanelled for bank audits. Hence any one partner has to close his proprietorship firm. It is better to convert proprietorship firm of your friend into partnership firm by adding you as partner. Seniority of this old proprietorship firm will be counted, if partnership firm will be formed with same name as that of proprietorship firm.
Posted by
CA. chunauti dholakia on
Apr 14, 2023