Our Today’s blog post is dedicated to the CA Articlehip termination form, rules, and procedure of transfer. 3 Years Articleship or Practical Training is a mandatory part of CA curriculum. Every CA student after qualifying either single or both groups of CA Intermediate / First Group of CA IPCC shall serve as an article assistant for three years under a Practicing Chartered Accountant. Read the procedure for Registration of Articleship Training.

The motto of ICAI behind Articleship Training is turning students into a true professional till the time they complete their Chartered Accountancy. Hence, the rules and regulations of ICAI in respect of Termination/Transfer of Articleship Training are very strict and they also strictly prohibit dummy articleship.

Recommended Read –

Importance of Articleship Training

ICAI Exemption Rules

Article Assistant can take the Transfer or Termination from the Articleship Training by submitting Form 109  with certain rules given below.

In this article, we are going to share with you the rules and procedure regarding the transfer and termination of Articleship Training. Let’s have a look –

CA Articleship Termination/Transfer during the First Year –

  • As per the ICAI guidelines, there are no restrictions for transfer amid the first year of Articleship Training.
  • A candidate is free to take the transfer and register himself under another practicing Chartered Accountant without obtaining prior approval of ICAI.
  • Further, no limit has been stated in the ICAI guidelines regarding the transfer. Therefore, a student can take the transfer from one CA to another CA as many times as he desires to have. The article can register his transfer under another Practicing Chartered Accountant by submitting Form 109 to ICAI.

Transfer During Second and Third Year –

Rules are strict for Termination and Transfer of Articleship Training in the second and third year of Articleship Training. Rules stated by ICAI are as follows –

  1. The institute can grant a discontinuance for a minimum period of three months to the article assistant on the basis of some medical ground. But the articled assistant is required to produce a medical certificate issued by a Government Hospital.
  2. Where the working parent of the articled assistant has been transferred to another city which involves a minimum distance of 50 Kms. But here the article assistant has to produce a certified copy of the transfer order and also the proof of relocation to another city).
  3. Where the article assistant has found guilty of Misconduct involving Moral Turpitude.  

Other Justifiable circumstances or reasons –

#1 There are some more grounds which are permissible in the Chartered Accountants Regulations, 1988 on the basis of which article assistant can take the transfer –

      1. Industrial Training (Regulation 51)
      2. Secondment of Articles (Regulation 54)
      3. Conversion from PCC to IPCC (the only Termination has been permitted here. Re-registration shall be allowed only after qualifying Group 1 of IPCC).
      4. Death of Principal [Regulation 57(1)(c)].
      5. Ceasing of Practice by the Principal. [Regulation 57(1)(a)].
      6. Removal of name of the Principal from the register of Member due to any reason [Regulation 57 (1)(b)].

#2 If the article assistant gets married and there is reallocation involving a minimum distance of 50 Kms.

#3 Irregular or non-payment of stipend as per Regulation 67.

#4 Where the article assistant wants to serve the remaining period of training outside India.

#5 Where the principal is moving to another city involving a minimum distance of 50 Kms.

In all the above circumstances, the articled assistant is required to obtain a prior approval from the ICAI before getting Form 109 signed by Principal.

ICAI has made clear that such approval shall be taken before submitting Form 109 by the notification dated 10th May 2011. The request shall be made on a plain white paper along with the recommendation of his principal accompanied with necessary evidence. The application shall be self-attested by the articled assistant.

In the above content, we have gone through the rules, procedure, and forms regarding CA Articleship Termination and Transfer. Hope you find it useful, hence stay in tune with cawizard for more such useful information.

Also Download Sample Resume for Articleship Training. 

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