Can I leave CA articleship after 1 year?

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Yes, a CA student can seek transfer/termination of articleship, but the process depends on the reason for leaving and the stage of articleship. Generally, there can be two situations:

  • The student wants to leave the current CA firm and continue articleship under another eligible Principal.

  • The student wants to discontinue articleship completely and leave the CA course.

In case the student wants to transfer to another CA firm, the rules differ based on whether the request is made within the first year of articleship or after completion of the first year. The transfer/termination has to be completed through the procedure prescribed by ICAI, and the student cannot simply stop attending the firm.

Under the ICAI New Scheme of Education and Training (applicable from 2023 onwards), the mandatory practical training period is 2 years.

Important Terms

Article Assistant/Articled Trainee: The CA student undergoing practical training.

Principal: The practising Chartered Accountant (CA) or CA firm under whom the student is registered for articleship training. The Principal is responsible for providing and supervising the practical training.

Transfer/Termination of Articleship: The process through which the student ends the current articleship arrangement and, if required, joins another eligible Principal to complete the remaining training period.

Leaving Articleship Within the First Year

During the first year of articleship, transfer/termination is generally permitted with the mutual consent of:

  • The Article Assistant (student), and
  • The Principal (the CA under whom the student is undergoing training)

The student has to complete the required ICAI formalities.

The general procedure involves:

  1. The student discusses the transfer/termination with the existing Principal.

  2. Form 109 (Certificate of Service/Termination of Articleship) is completed and signed by the required parties. Form 109 is the prescribed form used to record the termination of the existing articleship arrangement.

  3. The form and required details are submitted through the ICAI Self Service Portal (SSP).

  4. After termination is completed, the student can register with another eligible Principal to continue the remaining training period.

Leaving Articleship After Completion of First Year

After completion of the first year, transfer is allowed only on specific grounds prescribed by ICAI and requires following the applicable approval process.

Some recognised grounds include:

  • Medical reasons
  • Shifting of residence due to personal reasons
  • Family relocation
  • Marriage involving relocation
  • Joining industrial training
  • Death of the Principal
  • Principal ceasing to practice
  • Other circumstances permitted under ICAI guidelines

The student may be required to provide supporting documents depending on the reason for transfer. These grounds are subject to ICAI’s applicable rules and approval process.

If the Principal Does Not Give Consent

If the Principal does not provide consent for termination, the student may apply through the prescribed ICAI procedure using Form 120 for seeking ICAI intervention.

The student cannot directly join another Principal until the termination process is completed and approved, because the student continues to remain registered under the existing Principal until the transfer/termination is finalised as per ICAI requirements.

Does the Completed 1 Year Count?

Yes, if the termination and transfer are properly completed through ICAI procedures, the period already served under the previous Principal is counted as part of the practical training.

The student only needs to complete the remaining articleship period with the new Principal.

Re-registration With a New Principal

After termination:

  • The student has to identify another eligible Principal willing to provide training.

  • The student has to register the remaining period of articleship under the new Principal through the prescribed ICAI process.

  • Form 103 is used for registration of articleship under a new Principal through the ICAI Self Service Portal.

Exception

Leaving articleship to join a full time course or employment is different from transferring articleship to another Principal.

Such a case is different because the student is not continuing articleship under another Principal. The student should refer to the applicable ICAI procedure before taking such a decision, as it may involve discontinuation of the CA course and related formalities.

Key Forms

Form Purpose
Form 109 Certificate of Service/Termination of existing articleship
Form 103 Registration of articleship under a new Principal
Form 120 Application where Principal consent is not available and ICAI intervention is required

Conclusion

You can seek transfer/termination of articleship after 1 year, but it must be done through the proper ICAI transfer/termination procedure.

During the first year, mutual consent with the Principal is generally the basis for transfer. After the first year, the student must follow the specific grounds and approval process prescribed by ICAI.

The transfer and termination process is governed under the applicable ICAI Regulations relating to articleship training.

Official References

Please verify the latest applicable procedure from ICAI before applying, as ICAI may update forms and procedures from time to time.