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Ann. 15 – ICAI Rules of Merger & Demerger of CA Firms

PARTICULARS OF CASES: SENIORITY DATE OF EFFECT
V. Change in trade/ firm name (i) Change of name from the date of approval. 27.2.1999

The member/firm continues the practice (with or (ii) There is no change in the date of
without change in constitution) with the change in establishment. The old trade/firm name will be frozen
trade/firm name. in the Institute’s records for three years from the
date of approval of the new trade/firm name. In the
constitution certificate issued by the Institute during
that period of three years, the name will be mentioned
as “M/s ____________________ (formerly known as
M/s _______________)”
During that period of three years, the firm will be given
the option to have its original name at the choice of all
the partners only if all those partners so apply to the
Institute in the prescribed manner.
Note:

1. Trade name: The name in which the member practices as a sole proprietor.
2. Firm name: The name in which the firm practices.
3. `Trade name’ and `Firm name’ are the names as approved by ICAI.

4. Merger/amalgamation is a term not applicable to firms under the Partnership Act. It is reconstitution of firm by addition/
deletion of partners. The principles applicable to any reconstitution will, therefore, apply in these cases.

FORM `E’
FORMAT OF MERGER AGREEMENT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
[See Rule 3 of Rules of Merger & Demerger amongst the firms registered with The Institute of Chartered Accountants of India]
We, (1)………… (2) ………… (3) ……………… partners of (1) M/s. A & Co. (2) M/s. B & Co. & (3) …………………… execute this
Merger Agreement on this day of.................., at ............................:
1. M/s A & Co., a Partnership/Proprietorship firm of Chartered Accountants having its registered Head Office at ...........................,
duly registered with the Institute of Chartered Accountants of India vide Firm No. in region (which expression
shall include its successors, heirs and assigns).

The date of establishment, name of the partners, their membership nos, are as follows:-
(i) Date of establishment
(ii) Name of the Partners Membership No.

2. M/s B & Co., a Partnership/Proprietorship firm of Chartered Accountants having its registered Head Office at
_______________________, duly registered with the Institute of Chartered Accountants of India vide Firm No.
____________________ in ____________________ region (which expression shall include its successors, heirs and
assigns).

The date of establishment, name of the partners, their membership nos, are as follows :-
(i) Date of establishment
(ii) Name of the Partners Membership No.

3. _____________________________________ Now, therefore, in consideration of mutual promise herein made and the
consideration hereunder expressed, the parties hereto mutually covenant and agree as follows:

1. That the name of the merged firm will be _____________________ and the date of establishment of the merged
firm is the date of establishment of the oldest/older firm i.e. _________________

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