Page 162 - Quick Insights Book 2022

Ann. 14 – Revised Guidelines of Network

• Wider co-operation amongst the professionals (j) Referral practice - “Referral practice” means the
arrangements to facilitate access to and transfer of
• Sharing of common name of Alliance, if desired knowledge, database, tools, technology, resources, best
by Alliance firms, and to showcase their combined practices and/ or referral of clients, sharing of fees &
strength for securing professional work.
cost.
• Wider professional reach
(k) Regulations – “Regulations” means Chartered
• Referral practices Accountants Regulations, 1988.
• Wider geographical presence 4. Concept and Forms of Network

2.2 The objective of the Alliance Guidelines is not to The concept of Alliance is explained in Appendix 1, which forms
establish/ generate an Alliance, when it is not intended an integral part of the Alliance Guidelines.
to do so. An Alliance will only be recognized, if registered
with the ICAI, as mentioned in para 6 hereinbelow. 4.1 An Alliance may either be an Alliance of those entities
registered with the ICAI or other entities referred to in
2.3 Any specific regulations applicable to the respective para 3(e). (Refer to para 6 hereinbelow)
constituents of the Alliance will continue to apply. The
Alliance Guidelines do not intend to override specific 4.2 A registration of Alliance or an affiliation/ membership
regulations applicable to such entities. referred to in para 4.1 above, may only be initiated by
a firm of Chartered Accountants registered with the ICAI.
3. Definitions 4.3 The form of Alliance shall be as under:
In the Alliance guidelines, unless there is anything repugnant in An Alliance will act as a facilitator for the constituents
the subject or context, -- of the Alliance. The constituents will be free to carry out
(a) Act – “Act” means The Chartered Accountants Act, 1949. any professional practice on their own. Alliance may be
constituted as a group of firms and may register as AOP
(b) Alliance - “Alliance” means a larger structure of a group as recognised under income-tax laws.
of Indian CA Firms that have come together for mutual
benefits by pooling resources, showcase their combined 4.4 An Alliance may consist of proprietorship firm, partnership,
strength, and have uniform policies, technology and limited liability partnership, as may be permitted under
collaterals, and showcase themselves as one big unit. applicable laws/ regulations.
Please refer to the guidance in Appendix 1 of this 4.5 An entity is allowed to join only one Alliance. Firms
Annexure. belonging to one Alliance are not allowed to become
(c) Alliance Entity – “Alliance Entity” means an Indian CA Associates of another Alliance or Network firm.
firm that belongs to an Alliance. 4.6 Entities having majority of common partners shall join
(d) Code of Ethics – “Code of Ethics” means the Code only one Alliance.
of Ethics issued by the ICAI and relevant Council 4.7 Modalities of working of an Alliance are contained in
Guidelines.
Appendix 2 to this Annexure.
(e) Cooperation - “Co-operation” means the act of working
or acting together for a common purpose or benefit. 5. Approval of name of Alliance amongst entities
(f) Council – “Council” means the Council of the ICAI. 5.1 The Alliance shall have a distinct name. When four firms
viz. A & Co., B & Co., C & Co. and D & Co. come
(g) Entity - “Entity” means a sole proprietor firm, partnership together to form an Alliance, they will name their Alliance
firm, limited liability partnership, or any such form of as “ABCD”. In case they wish to use suffix, they will use
entity as may be permitted by law and in the context the suffix “& Alliance” to their common name to make
of the Alliance Guidelines, would comprise of those it “ABCD & Alliance”. The name should be approved
registered with the recognized professional body in India, by the ICAI. The prescribed format of application for
i.e., The Institute of Chartered Accountants of India approval of name for Alliance is at Form “A‟ as enclosed.

(h) ICAI – “ICAI” or the “Institute” means the Institute of The name of Alliance may be as mentioned in Appendix
Chartered Accountants of India. 3 to this Annexure.

(i) Member – “Member” means a Member of the ICAI as 5.2 In all professional stationery, the member-firms can
defined in Section 2(x) of The Chartered Accountants mention that they are member-firms of so & so Alliance.
Regulations, 1988. The Alliance can also mention in its professional
stationery that so & so firms are part of its Alliance.

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