Page 174 - Quick Insights Book 2022

Ann. 14 – Revised Guidelines of Network

with the recognized professional body in India, i.e., 4.4 Network may consist of proprietorship firm, partnership,
The Institute of Chartered Accountants of India limited liability partnership, as may be permitted under
applicable laws/ regulations.
(f) ICAI – “ICAI” or the “Institute” means the Institute
of Chartered Accountants of India. 4.5 An entity is allowed to join only one Network. Firms
belonging to one Network are not allowed to become
(g) Member – “Member” means a Member of the Associates of another Alliance or Network firm.
ICAI as defined in Section 2(x) of The Chartered
Accountants Regulations, 1988. 4.6 Entities having majority of common partners shall join
only one Network.
(h) Network - “Network” means a larger structure
of a group of Indian CA Firms that have come 4.7 Modalities of working of a Network are contained in
together for mutual benefits by pooling resources, Appendix 2 to this Annexure.
showcase their combined strength, and have
uniform policies, technology and collaterals, and 5. Approval of name of Network amongst entities
showcase themselves as one big unit, with one
lead firm acting on behalf of the member-firms 5.1 The Network shall have a distinct name. When four
firms viz. A & Co., B & Co., C & Co. and D & Co.
(i) Network arrangement - “Network arrangement” come together to form a Network, they will name their
means a written arrangement with an intent Network as “ABCD”. In case they wish to use suffix,
to create a Network in accordance with the they will use the suffix “& Affiliates” or “Network” to
Networking Guidelines. Please refer to the their common name to make it “ABCD & Affiliates” or
guidance in Appendix 1 of this Annexure. “ABCD Network”. The name should be approved by the
ICAI. The prescribed format of application for approval
(j) Network Firm – “Network Firm” means a firm or of name for Network is at Form “AA‟ as enclosed. The
Entity that belongs to a Network.
name of Network may be as mentioned in Appendix 3
(k) Referral practice - “Referral practice” means the to this Annexure.
arrangements to facilitate access to and transfer of 5.2 In all professional stationery, the member-firms can
knowledge, database, tools, technology, resources, mention that they are member-firms of so & so Network.
best practices and/ or referral of clients, sharing of The Network can also mention in its professional
fees & cost.
stationery that so & so firms are part of its Network.
(l) Regulations – “Regulations” means Chartered 5.3 Provisions of Regulation 190 of the Chartered
Accountants Regulations, 1988.
Accountants Regulations, 1988 shall be applicable to
the name of a Network. However, even if a name is
4. Concept and Forms of Network approved and subsequently it is found that the same is
The concept of Network is explained in Appendix undesirable, the said name may be withdrawn at any
1, which forms an integral part of the Networking time by the ICAI.
Guidelines. 5.4 The ICAI shall approve or reject the name of a Network
4.1 A Network may either be a Network of those entities and intimate the same to the Network at its address
registered with the ICAI or other entities referred to in mentioned in the prescribed Form “AA” within a period
para 3(e). (Refer to para 6 hereinbelow) which shall not be later than 30 days from the date of
receipt of the said Form.
4.2 A registration of Network or an affiliation/ membership
referred to in para 4.1 above, may only be initiated by a 6. Registration of a Network
firm of Chartered Accountants registered with the ICAI.
6.1 After the name of a Network is approved as per the
4.3 The form of Network shall be as under: provisions under para 5 of the Guidelines, the ICAI shall

A Network may be constituted as a group of firms and reserve such name for a period of three (3) months from
may register as AOP as recognised under income-tax the date of approval.
laws. The Network may authorise one of its member- 6.2 A Network shall come into existence only if it is
firms as the lead firm to act as a facilitator for the registered with the ICAI and for which an application
3
constituents of the Network.

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

Quick Insights on Professional Opportunities for Chartered Accountants 161