Page 168 - Quick Insights Book 2022

Ann. 14 – Revised Guidelines of Network

strength, and have uniform policies, technology and ICAI. The prescribed format of application for approval
collaterals, and showcase themselves as one big unit. of name for Network is at Form “A‟ as enclosed. The
name of Network may be as mentioned in Appendix 3
(i) Network arrangement - “Network arrangement” means a to this Annexure.
written arrangement with an intent to create a Network
in accordance with the Networking Guidelines. Please 5.2 In all professional stationery, the member-firms can
refer to the guidance in Appendix 1 of this Annexure. mention that they are member-firms of so & so Network.
The Network can also mention in its professional
(j) Network Firm – “Network Firm” means a firm or Entity stationery that so & so firms are part of its Network.
that belongs to a Network.
5.3 Provisions of Regulation 190 of the Chartered
(k) Referral practice - “Referral practice” means the Accountants Regulations, 1988 shall be applicable to
arrangements to facilitate access to and transfer of the name of a Network. However, even if a name is
knowledge, database, tools, technology, resources, best approved and subsequently it is found that the same is
practices and/ or referral of clients, sharing of fees & undesirable, the said name may be withdrawn at any
cost. time by the ICAI.

(l) Regulations – “Regulations” means Chartered 5.4 The ICAI shall approve or reject the name of a Network
Accountants Regulations, 1988. and intimate the same to the Network at its address
mentioned in the prescribed Form “A” within a period
4. Concept and Forms of Network which shall not be later than 30 days from the date of

The concept of Network is explained in Appendix 1, which forms receipt of the said Form.
an integral part of the Networking Guidelines.
6. Registration of a Network
4.1 A Network may either be a Network of those entities
registered with the ICAI or other entities referred to in 6.1 After the name of a Network is approved as per the
para 3(e). (Refer to para 6 hereinbelow) provisions under para 5 of the Guidelines, the ICAI shall
reserve such name for a period of three (3) months from
4.2 A registration of Network or an affiliation/ membership the date of approval.
referred to in para 4.1 above, may only be initiated by a
firm of Chartered Accountants registered with the ICAI. 6.2 A Network shall come into existence only if it is
registered with the ICAI and for which an application
4.3 The form of Network shall be as under: in the prescribed Form “B‟ shall be duly filed. Every

A Network may be constituted as a group of firms and agreement, bye-law, MOUs, by whatever name called,
may register as AOP as recognised under income-tax must be filed with ICAI, without which registration will not
laws. be given. The ICAI shall register or reject the application
within 30 days of filing the application or submission of
4.4 Network may consist of proprietorship firm, partnership, information as desired by the ICAI.
limited liability partnership, as may be permitted under
applicable laws/ regulations. 6.3 In order to use the name of a Network within the
meaning of the Network Guidelines, its registration with
4.5 An entity is allowed to join only one Network. Firms the ICAI is mandatory. A Network Registration Number
belonging to one Network are not allowed to become (NRN) and a certificate of registration to this effect will
Associates of another Alliance or Network firm. be issued by the ICAI.
4.6 Entities having majority of common partners shall join 6.4 Unregistered Networks, if any, are not permitted to derive
only one Network. undue advantage over registered networks. However, all
restrictions imposed by Network Guidelines on registered
4.7 Modalities of working of a Network are contained in Networks will be applicable to them. Hence, they are
Appendix 2 to this Annexure.
advised not to operate unless registered with ICAI.
5. Approval of name of Network amongst entities
7. Change in constitution of a registered Network
5.1 The Network shall have a distinct name. When four 7.1 In case of change in the constitution of a registered
firms viz. A & Co., B & Co., C & Co. and D & Co. Network on account of any entry into or exit from or
come together to form a Network, they will name their a discontinuation of the Network, the Network shall
Network as “ABCD”. In case they wish to use suffix, communicate the same to the ICAI by filing a prescribed
they will use the suffix “& Affiliates” or “Network” to Form “C‟ within a period of thirty (30) days from the date
their common name to make it “ABCD & Affiliates” or of such change and a revised certificate of registration
“ABCD Network”. The name should be approved by the
will be issued by the ICAI in this regard. In case, an

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