{"id":29739,"date":"2025-08-25T00:58:21","date_gmt":"2025-08-24T19:28:21","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29739"},"modified":"2025-10-28T18:55:28","modified_gmt":"2025-10-28T13:25:28","slug":"icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/","title":{"rendered":"ICAI Merger &#038; Demerger Guidelines, 2024 w.e.f. 23 Jan 2025"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d79e3a950b7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d79e3a950b7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#ICAI_Merger_Demerger_Guidelines_2024_Effective_23_Jan_2025\" title=\"ICAI Merger &amp; Demerger Guidelines, 2024 (Effective 23 Jan 2025)\">ICAI Merger &amp; Demerger Guidelines, 2024 (Effective 23 Jan 2025)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#Why_New_Guidelines\" title=\"Why New Guidelines?\">Why New Guidelines?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#Entity_Compatibility\" title=\"Entity Compatibility\">Entity Compatibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#Key_Processes\" title=\"Key Processes\">Key Processes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#Ethics_Compliance_Notes\" title=\"Ethics &amp; Compliance Notes\">Ethics &amp; Compliance Notes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#Seniority_Rules_Practical_Impact\" title=\"Seniority Rules (Practical Impact)\">Seniority Rules (Practical Impact)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#Practical_Checklists_%E2%80%93_As_per_ICAI_Guidelines_of_CA_Firm\" title=\"Practical Checklists &#8211; As per ICAI Guidelines of CA Firm\u00a0\">Practical Checklists &#8211; As per ICAI Guidelines of CA Firm\u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#Before_Merger_as_per_ICAI\" title=\"Before Merger as per ICAI\u00a0\">Before Merger as per ICAI\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#While_Merged_as_per_ICAI_issued_new_guidelines_of_CA_Firm\" title=\"While Merged\u00a0as per ICAI issued new guidelines of CA Firm\u00a0\">While Merged\u00a0as per ICAI issued new guidelines of CA Firm\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#For_Demerger_as_per_ICAI_issued_new_guidelines_of_CA_Firm\" title=\"For Demerger as per ICAI issued new guidelines of CA Firm\u00a0\">For Demerger as per ICAI issued new guidelines of CA Firm\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#ICAI_plans_to_spearhead_multidisciplinary_practice_firms_in_India\" title=\"ICAI plans to spearhead multidisciplinary practice firms in India.\">ICAI plans to spearhead multidisciplinary practice firms in India.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/icai-merger-demerger-guidelines-2024-w-e-f-23-jan-2025\/#Quick_Reference_Forms-_ICAI_Guidelines_governing_merger_and_demerger_of_CA_firms\" title=\"Quick Reference: Forms- ICAI Guidelines governing merger and demerger of CA firms\">Quick Reference: Forms- ICAI Guidelines governing merger and demerger of CA firms<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"292\" data-end=\"359\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-29006\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/CA-.jpg\" alt=\"CA\" width=\"859\" height=\"488\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/CA-.jpg 780w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/CA--300x170.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/CA--768x436.jpg 768w\" sizes=\"(max-width: 859px) 100vw, 859px\" \/><\/h2>\n<h2 data-start=\"292\" data-end=\"359\"><span class=\"ez-toc-section\" id=\"ICAI_Merger_Demerger_Guidelines_2024_Effective_23_Jan_2025\"><\/span><span style=\"color: #000080;\">ICAI Merger &amp; Demerger Guidelines, 2024 (Effective 23 Jan 2025)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"361\" data-end=\"629\">The Institute of Chartered Accountants of India (ICAI) has issued new guidelines governing merger and demerger of CA firms. These replace all prior Council rules, and are applicable to firms as defined in Section 2(ca) of the Chartered Accountants Act, 1949.<\/p>\n<h2 data-start=\"636\" data-end=\"660\"><span class=\"ez-toc-section\" id=\"Why_New_Guidelines\"><\/span><span style=\"color: #000080;\">Why New Guidelines?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul data-start=\"661\" data-end=\"1037\">\n<li data-start=\"661\" data-end=\"794\">\n<p data-start=\"663\" data-end=\"794\">Gap in law: Partnership Act, 1932 doesn\u2019t cover mergers\/demergers; LLP Act, 2008 covers LLPs but not cross-entity situations.<\/p>\n<\/li>\n<li data-start=\"795\" data-end=\"934\">\n<p data-start=\"797\" data-end=\"934\">Objective: To promote consolidation, scale and competencies within CA practice, while preserving seniority and name rights.<\/p>\n<\/li>\n<li data-start=\"935\" data-end=\"1037\">\n<p data-start=\"937\" data-end=\"1037\">Practical impact: Pre-2024 rules cannot be relied upon (unless grandfathering clause applies).<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"1044\" data-end=\"1069\"><span class=\"ez-toc-section\" id=\"Entity_Compatibility\"><\/span><span style=\"color: #000080;\">Entity Compatibility<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul data-start=\"1070\" data-end=\"1320\">\n<li data-start=\"1070\" data-end=\"1136\">\n<p data-start=\"1072\" data-end=\"1136\">Sole proprietorship \u2192 can merge with sole\/partnership\/LLP.<\/p>\n<\/li>\n<li data-start=\"1137\" data-end=\"1195\">\n<p data-start=\"1139\" data-end=\"1195\">Partnership firm \u2192 can merge with partnership\/LLP.<\/p>\n<\/li>\n<li data-start=\"1196\" data-end=\"1320\">\n<p data-start=\"1198\" data-end=\"1320\">LLP \u2192 can merge only with LLP (not with sole prop or partnership).<br data-start=\"1272\" data-end=\"1275\" \/>\u00a0Risk: LLP \u2192 non-LLP mergers are invalid.<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"1327\" data-end=\"1345\"><span class=\"ez-toc-section\" id=\"Key_Processes\"><\/span><span style=\"color: #000080;\">Key Processes<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"1347\" data-end=\"1362\"><span style=\"color: #000080;\">1. Merger<\/span><\/p>\n<ul data-start=\"1363\" data-end=\"1860\">\n<li data-start=\"1363\" data-end=\"1417\">\n<p data-start=\"1365\" data-end=\"1417\">Form MDG-1: File within 30 days of merger.<\/p>\n<\/li>\n<li data-start=\"1418\" data-end=\"1485\">\n<p data-start=\"1420\" data-end=\"1485\">Also file: Reconstitution deed with Registrar of Firms\/ROC.<\/p>\n<\/li>\n<li data-start=\"1486\" data-end=\"1633\">\n<p data-start=\"1488\" data-end=\"1633\">Name freezing: ICAI freezes old firm names (s.20B). No professional activity under frozen names\/FRN. UDINs for past work must be generated.<\/p>\n<\/li>\n<li data-start=\"1634\" data-end=\"1767\">\n<p data-start=\"1636\" data-end=\"1767\">Consent planning: 75% of surviving partners must later consent to unfreeze names; retiring\/resigning partners must give NOCs.<\/p>\n<\/li>\n<li data-start=\"1768\" data-end=\"1860\">\n<p data-start=\"1770\" data-end=\"1860\">Authentication: Managing Partner + co-authorized partner authenticate via SSP (OTP).<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1867\" data-end=\"1884\"><span style=\"color: #000080;\">2. Demerger<\/span><\/p>\n<ul data-start=\"1885\" data-end=\"2396\">\n<li data-start=\"1885\" data-end=\"1944\">\n<p data-start=\"1887\" data-end=\"1944\">Who can demerge? Only firms that previously merged.<\/p>\n<\/li>\n<li data-start=\"1945\" data-end=\"2010\">\n<p data-start=\"1947\" data-end=\"2010\">When? After 1 year and within 10 years of merger.<\/p>\n<\/li>\n<li data-start=\"2011\" data-end=\"2084\">\n<p data-start=\"2013\" data-end=\"2084\">Threshold: \u226575% of continuing partners of any one erstwhile firm.<\/p>\n<\/li>\n<li data-start=\"2085\" data-end=\"2137\">\n<p data-start=\"2087\" data-end=\"2137\">Form MDG-2: Notice to other partners + ICAI.<\/p>\n<\/li>\n<li data-start=\"2138\" data-end=\"2298\">\n<p data-start=\"2140\" data-end=\"2154\">Effects:<\/p>\n<ul data-start=\"2157\" data-end=\"2298\">\n<li data-start=\"2157\" data-end=\"2236\">\n<p data-start=\"2159\" data-end=\"2236\">Demerging firm revives; can reclaim old name (frozen) if within 1\u201310 years.<\/p>\n<\/li>\n<li data-start=\"2239\" data-end=\"2298\">\n<p data-start=\"2241\" data-end=\"2298\">Seniority = original establishment date + merged years.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li data-start=\"2299\" data-end=\"2396\">\n<p data-start=\"2301\" data-end=\"2396\">Filings: Both merged and demerged firms must file Form 18 under CA Regulations, 1988.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2403\" data-end=\"2431\"><span style=\"color: #000080;\">3. Unfreezing Old Name<\/span><\/p>\n<ul data-start=\"2432\" data-end=\"2618\">\n<li data-start=\"2432\" data-end=\"2473\">\n<p data-start=\"2434\" data-end=\"2473\">Form MDG-3: Filed after demerger.<\/p>\n<\/li>\n<li data-start=\"2474\" data-end=\"2546\">\n<p data-start=\"2476\" data-end=\"2546\">Consent: \u226575% surviving partners + NOCs from retirees\/resignees.<\/p>\n<\/li>\n<li data-start=\"2547\" data-end=\"2618\">\n<p data-start=\"2549\" data-end=\"2618\">Window: Must act within 10 years, otherwise name right is lost.<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"2625\" data-end=\"2655\"><span class=\"ez-toc-section\" id=\"Ethics_Compliance_Notes\"><\/span><span style=\"color: #000080;\">Ethics &amp; Compliance Notes<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul data-start=\"2656\" data-end=\"2902\">\n<li data-start=\"2656\" data-end=\"2727\">\n<p data-start=\"2658\" data-end=\"2727\">Disclose s.144 Companies Act restrictions (audit independence).<\/p>\n<\/li>\n<li data-start=\"2728\" data-end=\"2774\">\n<p data-start=\"2730\" data-end=\"2774\">No audit rotation within merged firms.<\/p>\n<\/li>\n<li data-start=\"2775\" data-end=\"2853\">\n<p data-start=\"2777\" data-end=\"2853\">Maintain custody of core documents (deeds, staff records, tax\/bank files).<\/p>\n<\/li>\n<li data-start=\"2854\" data-end=\"2902\">\n<p data-start=\"2856\" data-end=\"2902\">UDINs for pre-merger work must be completed.<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"2909\" data-end=\"2948\"><span class=\"ez-toc-section\" id=\"Seniority_Rules_Practical_Impact\"><\/span><span style=\"color: #000080;\">Seniority Rules (Practical Impact)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul data-start=\"2949\" data-end=\"3303\">\n<li data-start=\"2949\" data-end=\"3029\">\n<p data-start=\"2951\" data-end=\"3029\">Merged firm \u2192 seniority = oldest establishment date among merging firms.<\/p>\n<\/li>\n<li data-start=\"3030\" data-end=\"3099\">\n<p data-start=\"3032\" data-end=\"3099\">Demerger \u2192 seniority = original establishment + years merged.<\/p>\n<\/li>\n<li data-start=\"3100\" data-end=\"3171\">\n<p data-start=\"3102\" data-end=\"3171\">Old name use \u2192 only after 1 year and within 10 years of merger.<\/p>\n<\/li>\n<li data-start=\"3172\" data-end=\"3303\">\n<p data-start=\"3174\" data-end=\"3303\">Simple name change (not a merger) \u2192 establishment date unchanged; old name frozen for 3 years (with \u201cformerly known as \u2026\u201d).<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"3785\" data-end=\"3810\"><span class=\"ez-toc-section\" id=\"Practical_Checklists_%E2%80%93_As_per_ICAI_Guidelines_of_CA_Firm\"><\/span><span style=\"color: #000080;\">Practical Checklists &#8211; A<\/span><span style=\"color: #000080;\">s per ICAI Guidelines of CA Firm\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"3812\" data-end=\"3831\"><span class=\"ez-toc-section\" id=\"Before_Merger_as_per_ICAI\"><\/span><span style=\"color: #000080;\">Before Merger a<\/span><span style=\"color: #000080;\">s per ICAI\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"3832\" data-end=\"4070\">\n<li data-start=\"3832\" data-end=\"3881\">\n<p data-start=\"3834\" data-end=\"3881\">Verify entity compatibility (LLP\u2192LLP only).<\/p>\n<\/li>\n<li data-start=\"3882\" data-end=\"3947\">\n<p data-start=\"3884\" data-end=\"3947\">Draft MDG-1 with demerger terms, \u226575% rule, ethics caveats.<\/p>\n<\/li>\n<li data-start=\"3948\" data-end=\"4005\">\n<p data-start=\"3950\" data-end=\"4005\">File MDG-1 + deed with ICAI\/RoF\/ROC within 30 days.<\/p>\n<\/li>\n<li data-start=\"4006\" data-end=\"4070\">\n<p data-start=\"4008\" data-end=\"4070\">Identify Managing Partner + co-authorized partner for OTP.<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"4072\" data-end=\"4090\"><span class=\"ez-toc-section\" id=\"While_Merged_as_per_ICAI_issued_new_guidelines_of_CA_Firm\"><\/span><span style=\"color: #000080;\">While Merged\u00a0<\/span><span style=\"color: #000080;\">as per ICAI issued new guidelines of CA Firm\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"4091\" data-end=\"4223\">\n<li data-start=\"4091\" data-end=\"4142\">\n<p data-start=\"4093\" data-end=\"4142\">No professional work under frozen names\/FRNs.<\/p>\n<\/li>\n<li data-start=\"4143\" data-end=\"4176\">\n<p data-start=\"4145\" data-end=\"4176\">Generate all pending UDINs.<\/p>\n<\/li>\n<li data-start=\"4177\" data-end=\"4223\">\n<p data-start=\"4179\" data-end=\"4223\">Update constitution changes via SSP OTP.<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"4225\" data-end=\"4243\"><span class=\"ez-toc-section\" id=\"For_Demerger_as_per_ICAI_issued_new_guidelines_of_CA_Firm\"><\/span><span style=\"color: #000080;\">For Demerger as per ICAI issued new guidelines of CA Firm\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"4244\" data-end=\"4414\">\n<li data-start=\"4244\" data-end=\"4273\">\n<p data-start=\"4246\" data-end=\"4273\">Check 1\u201310 year window.<\/p>\n<\/li>\n<li data-start=\"4274\" data-end=\"4318\">\n<p data-start=\"4276\" data-end=\"4318\">File MDG-2 (\u226575% continuing partners).<\/p>\n<\/li>\n<li data-start=\"4319\" data-end=\"4359\">\n<p data-start=\"4321\" data-end=\"4359\">File Form 18 under CA Regulations.<\/p>\n<\/li>\n<li data-start=\"4360\" data-end=\"4414\">\n<p data-start=\"4362\" data-end=\"4414\">After demerger, file MDG-3 to unfreeze old name.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4421\" data-end=\"4745\">These guidelines create a formal legal-regulatory pathway for mergers and demergers of CA firms, protect seniority continuity, and regulate firm name freezing\/unfreezing. Missed filings, wrong entity pairings, or ignoring the 1\u201310 year rule can permanently cost seniority or old name rights.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ICAI_plans_to_spearhead_multidisciplinary_practice_firms_in_India\"><\/span><span style=\"color: #000080;\">ICAI plans to spearhead multidisciplinary practice firms in India.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-30319\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/ICAI-plans-to-spearhead-multidisciplinary-practice-firms-in-India.jpg\" alt=\"ICAI plans to spearhead multidisciplinary practice firms in India.\" width=\"1252\" height=\"440\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/ICAI-plans-to-spearhead-multidisciplinary-practice-firms-in-India.jpg 1252w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/ICAI-plans-to-spearhead-multidisciplinary-practice-firms-in-India-300x105.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/ICAI-plans-to-spearhead-multidisciplinary-practice-firms-in-India-1024x360.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/ICAI-plans-to-spearhead-multidisciplinary-practice-firms-in-India-768x270.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/ICAI-plans-to-spearhead-multidisciplinary-practice-firms-in-India-800x281.jpg 800w\" sizes=\"(max-width: 1252px) 100vw, 1252px\" \/><\/p>\n<p>The Institute of Chartered Accountants of India is discussing plans to spearhead multidisciplinary practice firms in India. Key Points Covered multidisciplinary practice firms in India<\/p>\n<ul>\n<li>Objective of MDP Firms : Institute of Chartered Accountants of India aims to allow firms to offer services across multiple disciplines, not just traditional accounting and auditing. This initiative is intended to align with global practices and meet evolving client needs.<\/li>\n<li>Regulatory Framework : Institute of Chartered Accountants of India is working on creating a regulatory structure for MDP firms. The framework will ensure compliance with existing laws and professional standards.<\/li>\n<li>Benefits for Members : Members will have opportunities to collaborate with professionals from other fields like law, management, and technology. This will help firms provide integrated solutions to clients.<\/li>\n<li>Challenges : Harmonizing rules across different professional bodies. Addressing concerns about independence and conflict of interest.<\/li>\n<li>Future Outlook : Institute of Chartered Accountants of India is engaging with stakeholders and government authorities to finalize guidelines. The initiative is seen as a step toward modernization and global competitiveness.<\/li>\n<\/ul>\n<p data-start=\"4421\" data-end=\"4745\">At the bottom, a bold statement emphasizes: \u201cUltimately, the entire intent and independence of auditors are gone. We are looking at how independence can be ensured and how conflict of interest can be avoided.\u201d<\/p>\n<h2 data-start=\"3310\" data-end=\"3337\"><span class=\"ez-toc-section\" id=\"Quick_Reference_Forms-_ICAI_Guidelines_governing_merger_and_demerger_of_CA_firms\"><\/span><span style=\"color: #000080;\">Quick Reference: Forms- ICAI Guidelines governing merger and demerger of CA firms<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"_tableContainer_sk2ct_1\">\n<div class=\"_tableWrapper_sk2ct_13 group flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"3339\" data-end=\"3778\">\n<thead data-start=\"3339\" data-end=\"3384\">\n<tr data-start=\"3339\" data-end=\"3384\">\n<th data-start=\"3339\" data-end=\"3346\" data-col-size=\"sm\">Form<\/th>\n<th data-start=\"3346\" data-end=\"3356\" data-col-size=\"sm\">Purpose<\/th>\n<th data-start=\"3356\" data-end=\"3365\" data-col-size=\"sm\">Timing<\/th>\n<th data-start=\"3365\" data-end=\"3384\" data-col-size=\"md\">Key Requirement<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"3431\" data-end=\"3778\">\n<tr data-start=\"3431\" data-end=\"3560\">\n<td data-start=\"3431\" data-end=\"3443\" data-col-size=\"sm\">MDG-1<\/td>\n<td data-col-size=\"sm\" data-start=\"3443\" data-end=\"3462\">Merger Agreement<\/td>\n<td data-col-size=\"sm\" data-start=\"3462\" data-end=\"3479\">Within 30 days<\/td>\n<td data-col-size=\"md\" data-start=\"3479\" data-end=\"3560\">Oldest establishment date, freeze request, demerger terms, OTP authentication<\/td>\n<\/tr>\n<tr data-start=\"3561\" data-end=\"3674\">\n<td data-start=\"3561\" data-end=\"3573\" data-col-size=\"sm\">MDG-2<\/td>\n<td data-col-size=\"sm\" data-start=\"3573\" data-end=\"3591\">Demerger Notice<\/td>\n<td data-col-size=\"sm\" data-start=\"3591\" data-end=\"3619\">After 1 yr, within 10 yrs<\/td>\n<td data-col-size=\"md\" data-start=\"3619\" data-end=\"3674\">\u226575% partners of erstwhile firm, OTP authentication<\/td>\n<\/tr>\n<tr data-start=\"3675\" data-end=\"3778\">\n<td data-start=\"3675\" data-end=\"3687\" data-col-size=\"sm\">MDG-3<\/td>\n<td data-col-size=\"sm\" data-start=\"3687\" data-end=\"3703\">Name Unfreeze<\/td>\n<td data-col-size=\"sm\" data-start=\"3703\" data-end=\"3720\">After demerger<\/td>\n<td data-col-size=\"md\" data-start=\"3720\" data-end=\"3778\">\u226575% surviving partners + NOCs from retirees\/resignees<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>ICAI Merger &amp; Demerger Guidelines, 2024 (Effective 23 Jan 2025) The Institute of Chartered Accountants of India (ICAI) has issued new guidelines governing merger and demerger of CA firms. These replace all prior Council rules, and are applicable to firms as defined in Section 2(ca) of the Chartered Accountants Act, 1949. Why New Guidelines? Gap &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10255],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29739"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29739"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29739\/revisions"}],"predecessor-version":[{"id":29741,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29739\/revisions\/29741"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}