TMI BlogGUIDELINES FOR CONVERSION OF COST ACCOUNTANTS FIRMS (PARTNERSHIP/PROPRIETARY) INTO LIMITED LIABILITY PARTNERSHIPSX X X X Extracts X X X X X X X X Extracts X X X X ..... y the members in practice of the Institute of Cost Accountants of India (ICAI) upon coming into force the provisions of the Cost and Works Accountants (Amendment) Act, 2011 (i.e., 1st February, 2012), subject to the provisions of the Limited Liability Partnership (LLP) Act, 2008 and Rules Regulations framed thereunder: (A) Conversion of Cost Accountant firms into LLPs 1. All the existing Cost Accountants' firms who want to convert themselves into LLPs are required to follow the provisions of Chapter-X of the LLP Act, 2008 read with Second Schedule to the said Act containing provisions of conversion from existing firms into LLP. 2. In terms of Rule 18(2) (xvi) of LLP Rules-2009, if the proposed name of LLP includes the wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing guidelines relating to seniority and other criteria shall be followed for registration of LLP with ICAI: (i) Where two similar or identical or nearly similar firm names (whether the partners of such firms are same or not) have applied for registration to ICAI, under the proposed LLP, only one such firm name who applied first shall be approved and remaining firm who has applied with ICAI, whether desires to convert into LLP or not, will have to change the firm name. (ii) The name of the LLP may be like 'X Co. LLP' or 'X Associates LLP' or 'XYZ LLP' and no other suffix shall be approved and registered by ICAI. (iii) The newly converted Cost Accountant LLP registered with ICAI shall be allowed to work only in terms of Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by ICAI, with the Regional Code like 'W' for Western, 'E' for Eastern, 'S' for Southern, 'N' for Northern. 9. Introduction of LLP, shall not affect the existing regulations in force as regards the name allotment to Cost Accountant firms. 10. The provisions of the Cost and Works Accountants Act, 1959, the Cost and Works Accountants Regulations, 1959 and Code of Ethics issued by ICAI shall be applicable to all partners jointly severally, of the converted Cost Accountant firms into LLP. 11. The following Guidelines are subject to the clarification from Ministry of Corporate Affairs (MCA), Government of India, New Delhi: (i) Wherever the existing partnership firm has been appointed as statutory auditor of any company, after follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t' or 'Cost Accountants', as the case may be, as part of the proposed name, the same shall be referred to ICAI by Registrar of LLP and it shall be allowed by the Registrar only if the Secretary/Authorized Official of ICAI * approves it. 14. If the proposed name of LLP of Cost Accountant firm resembles with any other non-Cost Accountant entity, as per the naming Guidelines under LLP Act and its Rules, the proposed name of LLP of Cost Accountant firm may include the words 'Cost Accountant' or 'Cost Accountants', as the case may be in the name of the LLP itself and the Registrar LLP may allow the same name, subject to compliance to Rule 18(2) (xvi) of LLP Rules as referred above. 15. For the purpose of registration of LLP with ICAI und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed under Section 2(2) of Cost and Works Accountants Act, 1959. LLP shall be subject to the same regulations, as if they were a partnership firm. Mere conversion into LLP does not give any privileges, which were not earlier with the Cost Accountant firms. (iv) Inter se seniority among the firms shall be given to LLP as per the existing policy of ICAI. In other words, LLPs shall carry the same seniority, as the firm shall otherwise have under the existing policy of ICAI. In case of merger of 2 LLPs, same rules are applicable as to firms merging shall apply. (v) The non-converted firms shall also remain on the same position of seniority in relation to converted LLPs, as the converted LLPs shall have the same inter se seniority, as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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