Question ID : 44467

Can a CA be a Full time Partner in CA firm along with being proprietor in his existing proprietorshi

Hi, Since 2020, I have held a COP and worked as a sole proprietor. I have been a member since 2019. So my experience is 3 years from COP and 4 years from becoming a CA member. My friend is also a sole proprietor and an FCA with more than 5 years of experience in audits. We want to form a partnership firm. Q1. Can we both become full-time partners in the new firm and proprietors of our respective existing sole proprietorship firms at the same time? Whether ICAI allows it? The address of the firm will be the same as the address of one of the proprietorship firms, so technically there will be one head of charge for two firms, i.e., a partnership firm and a proprietorship firm. Further, we will have 3 FRNs, i.e., 2 proprietorship firms and 1 partnership firm. (If proprietor and partner is not allowed, we will close the our proprietorship firm) Q2. Whether our partnership firm (as mentioned above) will be eligible for audits, if the criteria are as follows: "The Auditor / Audit firm or at least one of the partners should have a minimum of 5 years’ experience in carrying out audits" Q3. To qualify the above criteria of 5 years' experience, shall we convert the proprietorship of my friend (which is having experience of more than 5 years) into partnership firm adding me as a partner or shall form a new partnership firm? Basically, will the individual experience of partners be counted as the experience of the firm?

posted by YASH SUNIL SHAH on Apr 14 2023 12:00AM