Nowadays, there is a craze of Chartered Accountants because Chartered Accountancy Practice or CA Firm is among the professional practices that almost everyone are dreaming to do. CA’s are the professionals who have more knowledge about taxation, accounting, audit and other financial topics than us.
Many questions arise in the mind of the CAs about what to do, how to do, and many more. So to help you out with all the dilemma we have brought up an article about the provisions and requirements to set up the chartered accountant firm or chartered accountancy practice in the Country.
Qualification and Basic Requirements to Establish a CA Firm:
- The interested candidate can practice as a proprietor or by creating an association firm. In order to establish a CA firm or your Chartered Accountancy Practice, one must be a graduated chartered accountant from the Institute of Chartered Accountants of India (ICAI).
- Then the graduated CA can apply for the certificate of practice by providing the details while filing the ICAI form.
- When the graduated CA get the certificate of practice then-
- He can join an existing association firm or
- He can open his own CA firm.
- If he chooses to open his own CA firm, then he must get the name of the authorized firm from ICAI.
For studying the chartered accountancy, one has to pay the fees to ICAI. The fees vary depending on the time you are joining the chartered accountancy course.
- For the Intermediate Course, the candidate has to pay Rs 9,000.
- For Article registration, one has to pay Rs 2,000.
- For Common Proficiency Test (CPT), the fee is Rs 500.
- The fee of the Intermediate Exam for both the group is Rs 1600.
- While for the
finalexam the fee for both the group is Rs 2250.
In CA, you have to study by yourself. But one can even take private tuitions in the private coaching institutions and the fee of the tuition will vary according to your course and place.
For getting the membership and certificate of the practice, one must pay the enrollment fee to the institute.
Then later, to become an associate member of ICAI, you have to pay the membership fee of Rs 800 for five years and after that you will become a member of ICAI for which you have to pay Rs 2000 per year.
- For practice certificate, along with yearly fee as ACA (Association of Chartered Accountants) or FCA (Fellow Chartered Accountants), one must also pay Rs 2200 per year.
- Without practice certificate, the candidate can neither establish a CA firm nor join any existing CA partnership firm in India.
Extra Approval Required Before Establishing a CA Firm:
As per the requirements of the state government, for establishing a CA firm, one must take professional tax registration, approval from Municipal Corporation and trace license.
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Scope and Area of Practice:
The practising CA can practice in many fields as there are many legal requirements in the companies act, income tax act where a CA firm have to audit books of accounts of the organization.
The candidate can also get some government assignments and audits which are related to the taxation, accounting, and other financial matter.
CA firm or a practising CA has the ability to work as a tax consultant in which they can present their client in front of the income tax authorities or before other authorities such as Central excise, ROC, and service tax department.
After establishing the CA firm one must not think that the work will start from day one. You are wrong. You have to get your CA firm impanelled with government and other authorities and in banks.
The candidate will be given the work depending on the eligibility of their CA firm; it is based on you to take the responsibilities because one can get successful within a year or it might take years to get into the position.