How to set up a CA Firm or chartered accountancy practice in India

CA Firm or Chartered accountancy practice is one of the lucrative professional practices in India. Today, chartered accountants are recognized as professionals with robust knowledge of accounting, taxation, audit and other financial subjects.

In this article we will be discussing the provisions and requirements for setting up a CA firm or chartered accountancy practice in India.

CA Firm or chartered accountancy practice in India

Qualification and other Basic requirements to set up a CA firm

You can practice as a proprietor or by creating a partnership firm. What ever way you select, to set up a CA firm or your chartered accountancy practice, you must be a qualified chartered accountant from the institute of chartered accountants of India.

After becoming a chartered accountant you have to apply for certificate of practice with certain details by filling up the required form of ICAI.

With the certificate of practice you can either join an existing partnership firm or create your own proprietorship. If you have decided to create your own proprietorship then you need to get the name of proprietorship firm approved from ICAI after taking certificate of practice.

Investment requirements

During your chartered accountancy study, you are required to pay registration fee and exam fee to ICAI. Here are the detail fee structures of CA course. This fee structure may vary depending on the root you choose to join chartered accountancy course.

Course and Fee Amount in Rs.
PT registration Cost 6000
Intermediate Course 9000
35 hours Orientation program fee 3000
100 hours Computer training fee 4000
Article registration fee 2000
Final registration fee 10000
Two GMSC course for 15 days each (5500 each) 11000
CPT exam fee 500
Intermediate exam fee for both group 1600
Final exam fee for both group 2250
Total 49350

CA is a self study course. If you have decided to take private tuition in private coaching institutions then cost of your coaching classes will depend on the subject you have chosen for tuition and the place where you will be taking classes.

After passing out chartered accountancy, your life will be supper cool. Initially you are required to pay enrollment fee to institute for getting membership and certificate of practice.

You are required to pay yearly membership fee of Rs. 800 for the first 5 years as an associate memebr of ICAI and there after you can become a fellow member of ICAI for which yearly fee is Rs. 2000 per year.

For carrying certification of practice, in addition to the yearly fee as ACA or FCA, you are required to pay Rs. 2200 per year. Without certificate of practice you can not open a CA firm in India and you also can not join any existing CA firm as a partner.

Additional approval required before setting up a CA firm

Based on the state government’s requirements, as a CA firm you are required to take professional tax registration, approval from Municipal Corporation and trace license.

You can set up a CA firm anywhere in India irrespective of your place of birth or passing out place.

Scope and Area of practice

As a practicing chartered accountant, you can practice on many things. There are certain statutory requirements in companies act and income tax act where your CA firm is required to audit organization’s books of accounts.

You can also get some government audits and assignments related to accounting, taxation or any other financial matter.

CA firm or a practicing chartered accountant can also work as a tax consultant and represent their client before income tax authorities and/or in front of other statutory bodies like ROC, Central excise and service tax department.

After setting up a CA firm, you can not expect work to flow from the day one. You are required to get empanelled your CA firm with government, other statutory bodies and in banks.

Based on your CA firm’s eligibility, you will be assigned with works to execute. Some CA firms are able to get break even within a year and some are struggling. It’s up to you how you take up the challenge.

Editorial Staff at Yourfinancebook is a team of finance professionals. The team has more than a decade experience in taxation and personal finance.