Articleship Transfer Rules as per ICAI and Forms

CA Articleship Transfer Rules has been outlined by ICAI for smooth transition. Check eligibility criteria, permitted reasons for transfer, and the process for switching articleship firms.

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Articleship Transfer Rules: Upon enrolling as a CA student through the CPT Route or the Direct Entry Route, one must undergo a mandatory 3-year Articleship Training under a Chartered Accountant as part of the CA Curriculum. Throughout this period, students have the flexibility to take leaves and even transfer their articleship.

We’ve previously covered the procedure for Articleship Registration and the total leaves allowed during articleship. Now, let’s delve into the process of transferring articleship.

Although students can begin articleship after passing the 1st Group of IPCC, they’re only eligible to register for the CA Final after clearing both groups of IPCC.

Articleship Transfer Rules

According to CA Articleship Transfer Rules set by ICAI, transfers or terminations are allowed only in specific situations.

• If the article’s parent, who is working, gets transferred to a location at least 50 KM away, the article can request a transfer. However, they must provide the parent’s transfer certificate to their Principal. The Principal must then ensure the stipend payment is made correctly. If there are any issues or if the stipend isn’t paid as per regulation 67, the article can request a transfer or termination.
• If an article assistant wishes to complete part of their training outside India, they can apply for transfer or termination.
• In the unfortunate event of the Principal’s death under whom the article is registered, the article assistant can apply for transfer or termination.
• If the article faces severe health issues, they can pause their articleship for at least three months. They must provide a medical certificate from a Government Hospital.
• Article assistants are not allowed to pursue any courses during office hours, including graduation, as they usually clash with office hours. Students who wish to pursue other courses alongside Chartered Accountancy must seek permission from ICAI.4

Articleship Transfer Rules for 1st Year

During the first year of Articleship, CA students have the freedom to transfer between different Chartered Accountants (CA) without needing prior permission from ICAI (Institute of Chartered Accountants of India). There’s no limit on how many times they can switch. They can simply submit Form 109 directly to ICAI for the transfer. Despite a common misconception among students that transfers are limited to once, ICAI has confirmed that there’s no such restriction.

Articleship Transfer Rules for 2nd and 3rd Year

In the second and third years of training, Articleship Transfer is allowed only under specific circumstances:

1. Medical reasons requiring a break in articles for at least three months (supported by a Medical Certificate from a Government Hospital).
2. Transfer of a working parent to another city at least 50 kilometres away (supported by a transfer order and relocation proof).
3. Misconduct involving serious wrongdoing.
4. Other valid reasons, including those already permitted in the Chartered Accountants Regulations, 1988:

• • Industrial Training (Regulation 51)
  • Temporary transfer of articles (Regulation 54)
  • Transition from PCC to IPCC (only for termination of articles; re-registration allowed after passing Group-I of IPCC)
  • Principal’s death (Regulation 57(1)(c))
  • Principal ceases practice (Regulation 57(1)(a))
  • Principal’s name removal from the Register of Members for any reason (Regulation 57(1)(b)
  • Marriage-related relocation to another city at least 50 kilometers away
  • Irregular or non-payment of stipend as per Regulation 67
  • Desire to complete training period outside India
  • Principal’s relocation to a city more than 50 kilometres away.

  When an article assistant intends to transfer under any of these grounds, prior permission from ICAI is necessary before submitting Form 109. This requirement differs from the first year of Articleship, where no prior permission is needed.

  Before submitting Form 109 for transfer in the second or third year, the article assistant must submit a written request, on plain paper, along with recommendations from their current CA employer and supporting evidence (self-attested by the article assistant). More information can be found in the Official Notification of ICAI at http://www.icai.org/new_post.html?post_id=7267.

  It’s important to note that prior permission from ICAI is necessary in all mentioned cases, except when an article trainee intends to transfer for Industrial Training.

  Articleship Transfer Forms

  A student studying to become a Chartered Accountant (CA) who wants to change where they’re doing their practical training (called articleship) needs to first leave their current CA firm and then join the new one where they want to continue their training.

  To switch articleship from one CA firm to another, the student must fill out Form 109 for Articleship Transfer. This form needs to be signed by the CA they’re currently training under. The Institute of Chartered Accountants of India (ICAI) won’t approve a transfer request without the CA’s consent.

  If there’s a disagreement between the student and the CA they’re training under, they should try to resolve it peacefully. ICAI won’t intervene in such disputes.

  After submitting Form 109, the CA must also fill out Form 102 and Form 103 to register the student at the new CA firm. There’s no extra fee for transferring articleship apart from the cost of these forms.

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  Articleship Transfer Rules FAQs

  When can I transfer my articleship during my CA training?

  You can transfer articleship during the first year without prior permission from ICAI. In the second and third years, specific circumstances warranting transfer require prior permission.

  What are the specific circumstances allowing articleship transfer in the second and third years?

  Specific circumstances include medical reasons, parental relocation, misconduct, and other valid reasons outlined in the Chartered Accountants Regulations, 1988.

  Do I need prior permission from ICAI for articleship transfer in the first year?

  No, in the first year, you can transfer articleship without prior permission. However, in subsequent years, prior permission is necessary for specific circumstances.

  What forms do I need to fill out for articleship transfer?

  You need to fill out Form 109 for Articleship Transfer, which must be signed by your current CA employer. Additionally, your new CA employer must fill out Form 102 and Form 103 for registration.

  How can I resolve disputes with my current CA employer regarding articleship transfer?

  It's recommended to attempt resolving disputes amicably with your current employer. If unsuccessful, seeking guidance from ICAI may be necessary, although they typically do not interfere in such disputes.