Understanding ICAI Articleship Framework
Before diving into ICAI Articleship Termination & Transfer Rules, it is essential to understand how the articleship system works under ICAI. Articleship is a mandatory three-year practical training phase designed to prepare CA students for real-world accounting, taxation, and audit responsibilities.
Purpose of the Articleship Training
Articleship helps students implement theoretical knowledge into professional assignments such as audits, financial reporting, tax filing, and corporate compliance. This hands-on exposure builds confidence and strengthens analytical ability.
Importance of Compliance With ICAI Guidelines
Every CA student must comply with ICAI’s articleship guidelines because any non-compliance may result in disciplinary actions or extension of training. These rules ensure professionalism, discipline, and ethical conduct in the CA ecosystem.
Eligibility Conditions for Articleship Registration
Students who have cleared either both groups of CA Intermediate or Group I alone and completed ICITSS can register for articleship with a practicing Chartered Accountant.
ICAI Articleship Termination & Transfer Rules Overview
The rules surrounding termination and transfer are strict to prevent misuse. ICAI permits articleship termination only under specific conditions and supervises the transfer process through documented approvals.
When Termination is Allowed by ICAI
ICAI permits termination under genuine circumstances such as:
- Health complications requiring long treatment
- Relocation of family to another city
- Non-cooperative work environment
- Industrial training requirements
- Principal shifting practice location
Circumstances Where Termination is Restricted
In the second and third years of articleship, termination is highly restricted unless justified under ICAI-approved reasons.
Process for Requesting Articleship Termination
Students must:
- Discuss the concern with their principal
- Fill Form 109
- Upload supporting documents
- Submit the application through the Self Service Portal (SSP)
Documents Required for Termination
Documents include:
- Signed Form 109
- Medical certificate (if applicable)
- Address proof for relocation
- Letter from principal
Transfer Rules Under ICAI Articleship
Understanding the ICAI Articleship Termination & Transfer Rules also requires clarity on how transfers work.
When Students Can Apply for Transfer
ICAI allows transfers in cases like:
- Health issues
- Family relocation
- Industrial training
- Change of firm
- Non-cooperative environment
Rules for First-Year Articleship Transfer
Transfers in the first year are liberal. Students can request a transfer without giving a reason, provided the principal signs the necessary forms.
Restrictions for Second & Third Year Transfers
Once students enter the second year, ICAI introduces strict restrictions. Transfer is only possible under:
- Medical emergencies
- Relocation beyond 50 km
- Industrial training
- Principal’s death/disability
Exceptions & Special Cases Approved by ICAI
ICAI may consider special requests for reasons such as marriage, safety concerns, or unavoidable family emergencies.
Step-by-Step Procedure for Articleship Transfer
Approval Process from Principal
The principal must approve the transfer request, sign Form 109, and confirm the reason.
Filing Forms on SSP Portal
Students must upload forms, documents, and principal confirmation on ICAI’s SSP Portal.
Time Limits & Processing Duration
ICAI generally takes 1–3 weeks to approve requests.
Required Forms for Termination & Transfer
Form 109
This is the primary form for articleship termination.
Form 120 & Others
This includes certificates for medical or relocation proofs.
Common Reasons for Articleship Termination & Transfer
Health Issues
A medical certificate is required from a government doctor or recognized hospital.
Relocation of Family
ICAI allows transfer if the relocation distance is more than 50 km.
Industrial Training Plans
Students may switch to industrial training after completing the first year.
Tips to Avoid Articleship Conflicts
Maintaining Communication With Principal
Clear communication helps avoid misunderstandings.
Tracking Attendance & Leaves
Documenting attendance and leaves avoids disputes.
ICAI Guidelines on Leaves, Stipend & Working Hours
Maximum Leaves Allowed by ICAI
ICAI allows a fixed number of leaves based on training duration.
Stipend Structure Rules
Stipend varies depending on city category.
Working Hours & Restrictions
ICAI mandates 35–40 working hours per week with no overtime without approval.
FAQs For ICAI Articleship Termination & Transfer
Can a CA student take articleship termination anytime?
No. Termination is freely allowed only during the first year. After the first year, termination is restricted and permitted only under ICAI-approved reasons such as medical issues, relocation beyond 50 km, industrial training, or principal-related concerns.
What should I do if my principal refuses to sign Form 109?
In such cases, you can raise a grievance with ICAI through the SSP Portal. ICAI may intervene, request clarification from the principal, and allow termination if the reason is justified.
Is medical proof mandatory for a medical-based termination request?
Yes. ICAI requires a valid medical certificate from a government hospital or an ICAI-recognized medical practitioner if the termination reason is health-related.
How long does ICAI take to approve a termination or transfer request?
ICAI usually takes 1–3 weeks to review and approve termination or transfer applications submitted through the SSP Portal, depending on the documentation and verification required.
Can I take a transfer in the second or third year of articleship?
Yes, but only under specific ICAI-approved grounds such as relocation, medical emergencies, industrial training, or the principal’s death/disability. Without valid reasons, transfers are not permitted in the second and third years.
What documents are required for articleship termination?
You need Form 109 signed by the principal, plus supporting documents such as medical certificates, relocation proof, or other ICAI-approved evidence depending on your reason.
Is the principal’s approval mandatory for transfer?
Yes. Even in valid cases, the principal must sign Form 109. Without their signature, termination cannot proceed unless ICAI intervenes after reviewing a grievance.
Can I start articleship again immediately after termination?
Yes. After ICAI approves termination, you can register under another practicing CA using a new Form 103 and complete the remaining training period.
Is industrial training considered a form of termination?
It is technically a transfer, not a termination. Students can shift to industrial training after completing the first year of articleship with proper permissions.
What happens if the principal relocates their firm?
If the principal shifts practice beyond a reasonable distance, ICAI allows the student to request a transfer even in the second or third year.
Conclusion
The ICAI Articleship Termination & Transfer Rules ensure discipline, fairness, and smooth functioning of the CA practical training framework. Understanding these rules not only protects a student’s rights but also helps complete articleship without unnecessary obstacles.
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