Page 173 - Quick Insights Book 2022

Ann. 14 – Revised Guidelines of Network

6. Date of change in the constitution:
7. We hereby declare that the above firm(s) propose to enter/exit into/from the network in accordance with the Guidelines
for Networking amongst the firms registered with the Institute of Chartered Accountants of India and further affirm and the
confirm that the partners signing the application have been duly authorized by the other partners of the respective firms.
Place : ……………………… Name(s) with Membership No(s).
and signature(s) of duly authorized
Date : ……………………… Partner(s)/Proprietor(s) of the firms
Instruction: A copy of the authorisation to be filed with the ICAI by the partners signing the declaration on behalf of the
firms.

ANNEXURE III
THE GUIDELINES FOR NETWORKING WITH LEAD FIRM CONCEPT

1. Short Title & Commencement

(i) These guidelines may be called “The Guidelines for Networking with Lead Firm Concept‟, hereinafter referred as
“The Networking Guidelines ‟.

(ii) The Networking Guidelines have come into force on the 9th February, 2021.

2. Objective
2.1 The objective of the Networking Guidelines is to provide a framework for a firm of Chartered Accountants seeking benefits
from networking, such as:
• Wider co-operation amongst the professionals
• Sharing of common name of Network, if desired by Network firms, and to showcase one lead firm with their combined
2
strength for securing professional work.
• Pooling of knowledge, guidance, training, resources and infrastructure.

• Wider professional reach
• Sharing of methodologies, practices, strategy etc., in domestic and international markets

• Referral practices
• Wider geographical presence
2.2 The objective of the Networking Guidelines is not to establish/ generate a Network, when it is not intended to do so. A
Network will only be recognized, if registered with the ICAI, as mentioned in para 6 hereinbelow.
2.3 Any specific regulations applicable to the respective constituents of the Network will continue to apply. The Networking
Guidelines do not intend to override specific regulations applicable to such entities.

3. Definitions
In the Networking guidelines, unless there is anything repugnant in the subject or context, --

(a) Act – “Act” means The Chartered Accountants Act, 1949.
(b) Code of Ethics – “Code of Ethics” means the Code of Ethics issued by the ICAI and relevant Council Guidelines.
(c) Cooperation - “Co-operation” means the act of working or acting together for a common purpose or benefit.

(d) Council – “Council” means the Council of the ICAI.
(e) Entity - “Entity” means a sole proprietor firm, partnership firm, limited liability partnership, or any such form of entity
as may be permitted by law and in the context of the Networking Guidelines, would comprise of those registered

2 Lead Firm concept explained in Modalities under Appendix-2 of Guidelines

160 Quick Insights on Professional Opportunities for Chartered Accountants