CA Practice with Full-time Employment: Know ICAI Restrictions with Misconduct Cases
According to the Chartered Accounts Act, 1949, the act of doing both working full-time and practising amounts to the misconduct of disrepute the profession. However, the CA should seek prior permission from the ICAI.
Chartered Accountancy is a profession which requires a lot of effort, dedication and interest from the learning stage. In this profession, one can go for a full-time job or they can practise also. You cannot do both. The ICAI has provided clear directions on the same. If you engage in both, it will be considered as professional misconduct.
What Rules says?
There can be many opinions based on this topic. So, to avoid multiple opinion based conflicts, we can look into the legal side primarily. The Chartered Accountants Act, the Chartered Accountants Regulations (1988) and subsequent Council resolutions set out distinct roles for members in practice (those holding a Certificate of Practice- CoP) and members in service(salaried/employed members).
A member cannot practise as a CA in the sense of offering services reserved for practicing members unless entitled to a CoP. According to the Chartered Accounts Act, 1949, the act of doing both working full-time and practising amounts to the misconduct of disrepute the profession. However, the CA should seek prior permission from the ICAI. The professionals should not hide their employment before the ICAI.
If you commit such mistakes, the ICAI will take disciplinary action stating there is a violation of Item (2) of Part-IV of the First Schedule and Item (1) of Part-ll of the Second Schedule to the Chartered Accountants Act, 1949.
1st Schedule-Part 4-Item (2): A member of the Institute, whether in practice or not, shall be deemed to be guilty of other misconduct, if he- (2) in the opinion of the Council, brings disrepute to the profession or the Institute as a result of his action whether or not related to his professional work.”
2nd Schedule- Part 2, Item (1) : A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct, if he - (1) contravenes any of the provisions of this Act or the regulations made thereunder or any guidelines issued by the Council.
Permissions and Restrictions for CAs
Disclosure / Permission: If you hold a CoP and take up full-time employment (or vice-versa), you may be required to notify ICAI or obtain Council approval, depending on the role and whether it creates a conflict or a “substantial interest.” If you failed to disclose/seek approval, it will result in disciplinary action in recent cases.
Interest & independence: You cannot undertake attest, audit or other assurance assignments for an employer or related parties where independence would be compromised. Certain dual roles, for example, being appointed both internal auditor and procurement officer of the same organisation are impermissible.
Restrictions on services for non-practising members: A member not in practice is avoided from accepting engagements that are “normally prescribed” for practicing CAs, that is, you cannot perform reserved functions in another capacity. If you surrender your CoP or are not in practice you lose entitlement to those functions.
Teaching and other permitted activities: ICAI expressly permits certain activities e.g., lecturing up to specified hours, editorship, valuation under specific conditions without triggering Council approval provided you stay within the stated limits.
When Practicing CAs Can and Cannot Perform Attest Functions
In continuation of the Regulation 190A of the Chartered Accountants Regulations, 1988, as reproduced in Appendix No. 9 of the 2002 Edition, the ICAI Council has expanded the conditions governing non-accountancy engagements undertaken by members holding a Certificate of Practice (COP).
The central principle remains unchanged, a practicing CA must obtain either general or specific permission of the Council before pursuing any business or occupation apart from the profession of accountancy. However, the Council has now reaffirmed an additional, critical restriction that “If a member engages in any other business or occupation (with general or specific permission), the member shall ordinarily not be entitled to perform attest functions.”
Exceptions: When a Practicing CA May Still Perform Attest Functions
Despite the general prohibition, the Council recognises certain activities as non-conflicting and permissible without affecting eligibility to conduct attest work. As per the ICAI source, a member engaging in any of the following activities may continue to perform attest functions:
- Authorship of books and articles
- Holding a Life Insurance Agency licence, but only for receipt of renewal commission
- Attending classes or appearing for examinations
- Holding public elective office (MP, MLA, MLC)
- Acting as an honorary office-bearer of charitable, educational, or other non-commercial organisations
- Acting as Notary Public, Justice of the Peace, Special Executive Magistrate, and similar statutory roles
- Part-time tutorship under ICAI’s Coaching Organisation
- Valuation of papers, acting as a paper-setter, head examiner, or moderator for any examination
- Editorship of professional journals (provided the role does not amount to employment)
- Acting as Surveyor and Loss Assessor under the Insurance Act, 1938 (not in employment)
- Acting as Recovery Consultant in the banking sector (not in employment)
- Taking Coaching assignments organised by ICAI, Regional Councils, or Branches
- Engagement as a lecturer in universities, colleges, coaching centres, or via private tutoring- subject to a cap of 25 teaching hours per week
- Any other occupation specifically permitted by the Executive Committee from time to time
The ICAI has also made clarified that “the Attest function for the purpose of this Resolution would cover services pertaining to audit, review, certification, agreed upon procedures, and compilation, as defined in the Framework of Statements on Standard Auditing Practices and Guidance Notes on Related Services published in the July, 2001 issue of the Institute's Journal.”
Special Permission Requirements
The Chartered Accountant member shall take permission from the ICAI specially if there are planning engagements in the following areas:
- Full-time or part-time employment in a business organisation, however you must prove that there is no interest on your part or your kin.
- Holding executive positions like managing director or full-time director - not interest should be there.
- Running family business
- Starting or co-founding a startup
- Opening retail, trading, manufacturing, or consultancy business not related to accountancy
All the above listed are some activities, however, you can seek permission for whatever you’re going to do or start before and just consider it as precaution.
What is not allowed even with ‘ICAI’s Permission’
While Regulation 190A allows members to seek prior approval before entering into any business or occupation outside the practice of accountancy, certain activities remain completely prohibited, regardless of permission.
ICAI does not permit engagements that inherently compromise professional independence or conflict with the ethics of the profession. Accordingly, a practicing CA cannot undertake full-time business activities that impair independence, act as a promoter in multi-level marketing schemes, or engage in speculative trading, stock broking, or money lending except in very limited circumstances specifically allowed by ICAI.
PROFESSIONAL MISCONDUCT CASE LAWS ON EMPLOYMENT
ICAI Suspends CA for Simultaneously Holding Full-Time Job and Running Own Firm, Slaps ₹50k Fine [Read Order Here]
The ICAI Disciplinary Committee found a CA guilty of Professional and Other Misconduct for simultaneously holding a full-time Certificate of Practice while working as General Manager (Accounts & Finance)with Gimpex-Imerys India Pvt Ltd between June 2021 and January 2022, in violation of his appointment terms and Regulation 190A, which requires prior Council approval before taking up employment.
The Committee noted that despite declaring “self-practice” in the Employment Data Form, he misrepresented facts since records showed he was in full-time practice since 2012 and continued to generate multiple UDINs during the employment period, proving he was conducting audits and certifications while drawing salary.
He also did not report earlier employment to ICAI, failed to disclose the current job to the Institute, and omitted his salary income in his ITR for AY 2022-23. ICAI’s disciplinary committee, while rejecting his explanations such as financial distress during COVID-19, alleged unethical practices in the company, and claims of short-term assignment work held that he violated ethical norms, brought disrepute to the profession, and contravened ICAI regulations.
Accordingly, ICAI ordered removal of his name from the Register of Members for six months and imposed a ₹50,000 fine, also recording displeasure over his discourteous conduct during hearings.
CA Employed in Govt Organisation Continuously for 8 Years while Holding Full-Time CoP: ICAI Finds CA Guilty of Professional Misconduct [Read Order Here]
The ICAI Board of Discipline held CA guilty of Professional Misconduct for working full-time as a Procurement Officer with the Govt.-run Jeevika (BRLPS, Bihar) for nearly eight years while simultaneously holding a full-time Certificate of Practice, without obtaining mandatory prior approval under Regulation 190A of the Chartered Accountants Regulations, 1988.
The Board noted, based on documents such as Form 26AS and employment records (page 7), that he received salary from the organisation and had his appointment renewed multiple times from 2013 to 2023, clearly proving continuous employment.
ICAI, while rejecting the Respondent’s defence that the complaint was malicious or that he was performing duties within ICAI norms, observed that disciplinary proceedings are meant to protect professional standards and cannot be treated as a private dispute. Since he continued in salaried employment for years while holding a CoP and carrying out CA functions, the Board found him guilty under Item (1) of Part I of the First Schedule and concluded that he violated ICAI’s professional standards.
Full-time Employment as CFO while holding Certificate of Practice is Professional Misconduct: ICAI reprimands Chartered Accountant [Read Order]
ICAI held CA guilty of Professional Misconduct for holding a full-time Certificate of Practice (CoP) while simultaneously working as CFO of Purple Panda Fashions Pvt. Ltd. The informant alleged that the Respondent remained in employment from 2011-2016 while holding a full-time CoP, supported by the company’s offer letter and ICAI’s RTI reply.
Though additional allegations such as forgery, cybercrime, and wage violations were made, the Board found no material supporting those charges and confined its inquiry to the CoP violation. CA Batra contended that he never practised, never audited any entity, never hired trainees, and derived no benefit from the CoP, calling it an inadvertent mistake.
However, ICAI records showed that he opted for and paid CoP fees from 2011, continued to hold it until February 2018, and disclosed employment only later in Form-9. The Board held that even if no audit work was performed, maintaining a full-time CoP while being in salaried employment without Council approval clearly violated Regulation 190A of the Chartered Accountants Regulations, 1988. Accordingly, ICAI concluded that the Respondent was guilty under Item (11) of Part I of the First Schedule to the CA Act for engaging in prohibited occupation while holding CoP.
ICAI Suspends CA for 30 Days for Acting as Company Director and Engaging in Business Without Permission [Read Order]
ICAI has suspended a Chartered Accountant for 30 days after finding that the member improperly held a full-time Certificate of Practice while simultaneously serving as a Director in multiple companies, without obtaining the mandatory prior approval of the ICAI Council.
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This violated Item (11) of Part I of the First Schedule, which bars CAs in practice from engaging in any other business or occupation, and Item (2) of Part IV, which treats such conduct as bringing disrepute to the profession.
After giving the member a chance to be heard, the Board of Discipline ordered removal of the CA’s name from the Register for 30 days starting 19 September 2025. During this period, the individual cannot practise, sign audit reports, or represent themselves as a CA, an action likely to disrupt clients’ filings near statutory deadlines. The member’s name will be restored after the suspension period, allowing resumption of practice as per ICAI regulations.
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