Manual Relating to Members

17. Change in Constitution of Firm
(Regulation 190)


The details regarding change in particulars of the firm in Form 18 are required to be submitted to the Institute's office within 30 days from the date of such change. Requirements A letter informing changes in the firm alongwith Form 18 duly signed by all the partners with change in particulars is required to be submitted within one month from the date of change in the constitution.

(2) (a)


In case of leaving of a partner a letter of consent of retirement signed by the retiring partner and Form 18 signed by the existing partner/s of the firm is required to be submitted. The firm should confirm the retirement of the partner.


In case of opening/closing of a firm, a letter informing the exact date of opening/closure must be submitted.


In case of a closure/dissolution of the firm a letter signed by all the partners confirming the closure/dissolution must be submitted.


In case of sole proprietary firms, closure/sole practising member's closure, an intimation by the member giving the exact date of closure must reach the Institutes office within one month.

Condonation of Breach of Regulation 190(7)*
(1) In case there is delay in submitting Form 18 beyond one month, the firm shall submit an application for condonation of delay stating reasons alongwith copy of Partnership Deed/Profit & Loss A/C, Balance Sheet and copy of Income Tax Returns certified by a practising chartered accountant, a "Declaration" in the prescribed Format (please see page 88) and condonation fees as applicable. (2) The Decentralised Office will issue a letter confirming the change in constitution to the Firm after condonation of delay by the competent authority.

Sale/Transfer of Goodwill of A Firm
Transfer of goodwill of the firms of Chartered Accountants are permitted by the Institute subject to fulfillment of the following procedure :1. An application in writing should be forwarded by a member, holding Certificate of Practice, intimating his intention to purchase goodwill. 2. The application should be made within one year from the date of death of the member.

and (i) A draft sale deed for sale/transfer of goodwill entered into between the legal heir/s of the deceased and the members intending to purchase goodwill. legal heir certificate or an affidavit sworn by all legal heir/s stating that there is/are no other legal heir/s to the deceased member. 5. 7.Regarding It has been decided that in respect of the following changes in the firm. 18 need not be called for from the firm :i) ii) iii) iv) v) Joining or Leaving of Paid Assistant Opening or Closing of Branch Office(s) Change in Incharge or the HO or Branch Offices(s) Closure of Firms (to be signed by all the partners) Change in address of HO or Branch Office(s) A written intimation signed by the member incharge firm or the authorized partner of the firm will suffice compliance of the requirement of the Regulation 190(7) provided the same is received within one month from the date such change have taken place. and the advertisement should spell out that anyone having objection thereto should send the objection directly to the respective Decentralised Office (address of which shall be indicated in the advertisement). Legal heir. the member purchasing the goodwill should file Form 18. the particulars thereof in form no. this will be treated as breach of Regulation 190(7) and levy fee for condonation of delay is required to be collected from the firm. a) b) The application should be sent alongwith the following details: Death Certificate of the deceased member. . Within 30 days of the receipt of the approval for transfer of goodwill. The consideration should not be contingent upon future profit. 8. if the information is not received within one month from the date of such change. means spouse. In case of minor. 6. are also required to be submitted. If the agreement is entered into by one of the legal heirs. The member intending to purchase the goodwill should give an advertisement about intention to purchase such goodwill. * Please see chapter No. except those minor. However. (ii) The sale of goodwill deed must be very clear as to the amount of consideration and payment thereof in one or more installment(s) to be paid within a specified period. 18 . Documents. in this context. 'No Objection' from the other legal heirs.Manual Relating to Members 3. 4. such as. succession certificate or Will. child/children and parents. 20 on Condonation of breach of Regulations for non-filing of Forms within specified time Submission of Particulars of Offices and Firms in Form no. The intending purchaser should send a copy of the advertisement so published to the concerned Decentralised Office. 'No Objection' is to be obtained from the guardian.