Transfer/Termination of CA Articleship

RAJ PLACEMENTS INDIA

Transfer/Termination of Articleship

Articleship Transfer Norms in the 1st Year

Transfer /termination of articles are permitted without any restriction during the first year of articles.
In the 1st year of Articleship, there is no restriction on transfer of Articleship and a CA Student can take a transfer from one CA to another CA without any prior permission of ICAI. There is no maximum limit stated on the transfer of articleship in the 1st year and the CA Student can take transfer as many times as he wants.

No prior permission of ICAI is required in case the article assistant intends to take transfer in the 1st year of articleship and can directly submit the Form 109 to ICAI.

There is a rumour among the CA Students that in the 1st year of articleship, transfer is allowed only once. However, this rumour is baseless and ICAI has clarified that there is no limit on the no. of times articleship transfer can be taken in the 1st year of articleship.

During rest of the articles period, kindly follow instructions mentioned in below

ARTICLESHIP TRANSFER NORMS IN THE 2ND & 3RDYEAR

In accordance with the decision of the Council, the transfer/termination of articleship in terms of Regulation 56(1) of the Chartered Accountants Regulations, 1988 shall be permissible to an articled assistant on satisfying any one or more of the conditions as stated below: -

• Medical grounds requiring discontinuance of articles for a minimum period of three months (on production of a Medical Certificate issued by a Government Hospital).
• Transfer of a working parent to another city involving a distance of minimum 50 kms (on production of a certified copy of the transfer order and the proof of relocation to another City).
• Misconduct involving moral turpitude.
• Other justifiable circumstances / reasons: -
  • Grounds already permissible in the Chartered Accountants Regulations, 1988 (on submission of requisite proof of the act warranting transfer/termination of articleship): -
    • Industrial Training (Regulation 51)
    • Secondment of articles (Regulation 54)
    • Conversion from PCC to IPCC (for termination of articles only. Re-registration of articles to be allowed only after passing Group-I of IPCC)
    • Death of Principal [Regulation 57(1)(c)]
    • Ceasing of practice by the Principal [Regulation 57(1)(a)]
    • Removal of name of the Principal from the Register of Member due to any reason [Regulation 57(1)(b)]
  • Marriage basis (only if there is relocation to another city involving distance of 50 kms).
  • Irregular payment or non payment of stipend with reference to Regulation 67.
  • Articled assistant desires to serve balance period of training outside India.
  • Shifting by the Principal to another city involving distance more than 50 kms.

The articled assistants are required, in the first instance, to get the consent of the Institute before getting Form 109 signed by the Principal, in their own interest.

The request, on any one or more of the aforesaid grounds, of an articled assistant on a plain paper with recommendations of the Principal for transfer / termination of articleship accompanied by evidence/proof (self-attested by the articled assistant) to the satisfaction of the Institute be made.

As informed earlier vide announcement dated 2nd July 2010, ICAI is allowing the articled assistants to seek transfer/termination of articleship only on permissible grounds and the articled assistants are advised to get the consent of the Institute before getting Form 109 signed by the Principal in their own interest.However, it is noticed that some of the articled assistants are submitting Form 109 signed by the principal along with the application for transfer/termination of articleship. Issuance of Form 109 prior to formal approval of the Institute for transfer will not be taken into record.It is advised that Principal and articled assistant may forward Form 109 duly signed by both of them only after obtaining the prior permission of the Institute for transfer/termination.

 Form 109 can be downloaded from  here