Today, CAs are recognized as professionals with vigorous knowledge of accounting, taxation, audit and other such financial subjects. However, to get started with the business you require good financial backup in order to run your business operations smoothly. To get the necessary financing you can simply apply for a loan for CA professionals and cover all the costs incurred in starting your own CA firm. A professional loan will finance all expenses like buying furniture and computers for your office or for making other payments.
Let’s discuss the provisions and requirements for practicing CA and setting up your CA firm in India.
Qualification and Basic Requirements to get started with a CA Firm:
- To get started you can practice as a proprietor or create an association firm. In order to practice Chartered accountancy and establish a CA firm, you need to be a graduated chartered accountant from the Institute of Chartered Accountants of India (ICAI).
- A graduated CA can apply for the certificate of practice by providing their educational and personal details while filing the ICAI form.
- Once you receive the CA certificate of practice then-
- You can join an existing association firm
- You can open your own CA firm.
- If you choose to open your own CA firm, then you also need the name of the authorized firm from ICAI (Institute of Chartered Accountants of India)
To study chartered accountancy, one has to pay the fees to ICAI. The fees vary depending on the time you join the chartered accountancy course.
- For an Intermediate CA Course, the candidate has to pay Rs 9,000.
- For registration of the article, one has to pay Rs 2,000.
- The Common Proficiency Test (CPT) fee is Rs 500.
- The fee of the CA Intermediate Exam for both the group is Rs 1600.
- For the CA final exam, the fee for both the group is Rs 2250.
In CA, you have to study by yourself. But there are many private coaching institutions available you can enroll in one and get the necessary guidance. The fee of the tuition will vary according to your course and place. To get the membership and certificate of the practice, you need to pay the enrollment fee to the institute.
In order to become an associate member of ICAI, you have to pay the membership fee of Rs 800 for five years after that you’ll become a member of ICAI then you are required to pay Rs 2000 per year.
- For practice certificate, along with yearly fee as ACA (Association of Chartered Accountants) or FCA (Fellow Chartered Accountants), you also need to pay Rs 2200 per year.
- Without a practicing certificate, you can neither establish your own CA firm nor join any existing CA partnership firm in India.
Scope and Area of Practice:
A practicing CA can practice in many fields as there are numerous legal requirements in the company’s act, income tax act. The candidate can also get some government assignments and audits that are related to taxation, accounting, and other financial matters. A CA firm or a practicing CA has the ability to work as a tax consultant in where they can present their client in front of the income tax authorities or before other authorities such as Central excise, ROC (Registrars of Companies), and the service tax department. After establishing your CA firm you must not think that the work will start immediately from day one. You are wrong, you still have to get your CA firm impaneled with government and other authorities and in banks.
The practicing CA will be given the work depending on their CA firm eligibility; it depends on you to take the responsibilities because you can get success within a year or it might take years to get into the desired phase and position.55