ICAI (Aggregation of LLPs) Guidelines 2024: Key Points
- Effective Date: 23rd January 2025
- Purpose: Allows eligible LLPs to combine and operate as a single unit with enhanced capabilities.
- Eligibility:
- LLPs with >50% practicing Chartered Accountants as partners.
- Majority criteria calculated based on both the number of partners and their profit-sharing ratio.
- Partner LLP can join only one Parent LLP.
- Governance:
- Governed by CA Act 1949, LLP Act 2008, and relevant ICAI guidelines.
- Board of Management formed with managing partners from each participating LLP.
- Parent LLP’s decision prevails in case of disagreements.
- Naming:
- New LLPs follow existing ICAI and MCA naming guidelines.
- Registration:
- Aggregated LLPs must register with ICAI and receive a unique registration number.
- Practice:
- No rotation of audit or joint audit among Partner LLPs allowed.
- Partner LLPs can practice independently while being part of the aggregated LLP.
- Characteristics:
- Mutual benefits through resource pooling, unified policies, and technology sharing.
- Written agreement among partners, adhering to ICAI’s Code of Ethics.
- Well-documented quality control mechanisms.
- Referral of work and profit-sharing permitted.
- Reconstitution:
- Must be registered with ICAI and other regulatory bodies.
- Changes in partners do not affect the LLP’s existence.
- Exit/Closure:
- Follows ICAI, LLP Act 2008, and Registrar of Firms procedures.
- Miscellaneous:
- “Doc Locker” for secure document storage and access.
- Grievance Redressal Cell for addressing queries.
- Body corporates (Companies) not permitted as partners in the aggregated LLP.
- refer
ICAI (Aggregation of LLPs) Guidelines 2024.