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Question ID : 44896

Clarification on Holding Proprietorship and Partnership Firm Simultaneously

I am a Chartered Accountant holding a full-time Certificate of Practice. I am currently a partner in a CA firm registered with ICAI, but I am not the member-in-charge of that partnership firm. I have also registered a proprietorship firm under my name through the SSP portal. This proprietorship firm is currently not operational — no assignments, client services, billing, or signing are being done from it. I seek ICAI’s clarification on the following points: 1. Can a member in practice simultaneously retain both a partnership firm (where they are not member-in-charge) and a proprietorship firm, provided * Both firms are registered and located in India, * Only the partnership firm is active and used for professional services, 2. Does the mere existence of both FRNs under the same member, even if one is inactive, **constitute a violation** of ICAI Council Guidelines, Code of Ethics, or Regulation 53A? Thank you in advance for your guidance.

posted by ADITI KASHYAP on Jul 16 2025 12:00AM

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