The Council of the Institute of Chartered Accountants of India, on January 24, 2025, issued ICAI (Aggregation of LLPs) Guidelines 2024.
The guidelines outline the eligibility, governance, and operational framework for Chartered Accountant (CA) LLPs. Full-time practicing CAs or LLPs with a majority of CA partners can form or join LLPs, adhering to the provisions of the Chartered Accountants Act, LLP Act, and relevant regulations. Key criteria include maintaining a majority of individual CA partners in number and profit share.
The following has been stated-
•Eligibility: LLPs must have more than 50% of partners as practicing CAs, ensuring compliance with the LLP Act, 2008.
•Governance: A Board of Management, comprising authorized managing partners, will oversee regulatory compliance, strategic decisions, and operational matters.
•Practice: LLPs may pool resources and showcase combined strength under written agreements. Quality control, adherence to ethical codes, and mutual benefit among partners are emphasized.
•Reconstitution and Exit: Changes in LLP structure must comply with ICAI rules, ensuring continuity of work and adherence to existing agreements.
•Technology Support: A "Doc Locker" will enable secure storage and access to documents, integrated with ICAI's tech infrastructure.
•Grievance Redressal: A dedicated cell will address issues under these guidelines.
Body corporates incorporated as companies under the Companies Act, 2013, or foreign laws are not permitted as partners in CA LLPs. These guidelines aim to foster collaboration, enhance professional standards, and streamline CA practices.
[Notification No. 1-CACAF/LLP-F/2025-]
