Chartered Accountant in Practice-Defined in section 2(2) of CA Act,1949

Purpose of  the CA Act,1949 -“to make provision for the regulation of the profession of CAs.”  ICAI-Institute of Chartered Accountants of India constituted under the Act.  
ICAI’s affairs managed by-The Council of the Institute.(i.e. the Central Council). The Council has been empowered to discharge the functions assigned to it under the Act.  
The Amendment Act,2006-New Disciplinary mechanism introduced by the Amendment Act,2006 
The Amendment Act,2011-Allowing LLPs of CAs to practice; allowing multi-disciplinary firms/LLPs of CAs and other recognised professionals   

MEMBERS OF ICAI

Every member of ICAI- is entitled to designate himself as a Chartered Accountant. 
Two classes of members 

• those who are in practice and  
• those who are otherwise occupied.

WHEN IS MEMBER OF ICAI DEEMED TO BE IN PRACTICE?-SECTION 2(2)

A member of the Institute shall be deemed “to be in practice” when he, in consideration of remuneration received, or to be received-

(i) engages himself in the practice of accountancy; or

(ii) offers to perform or performs services involving the auditing or verification of financial transactions, books, accounts or records, or the preparation, verification or certification of financial accounting and related statements or holds himself out to the public as an accountant; or

(iii) renders professional services or assistance in or about matters of principle or detail relating to accounting procedure or the recording, presentation or certification of financial facts or data; or

(iv) renders such other services as, in the opinion of the Council, are or may be rendered by a CA in practice.

A member shall be deemed to be in practice if he  practices as above:

• individually or 
• in partnership with CA/CAs in practice or 
• in partnership with members of such other recognised professions as may be prescribed. 

 According to section 2(1) (ec) of the Act “partnership” means—
(A) a partnership as defined in section 4 of the Indian Partnership Act, 1932; or
(B) a limited liability partnership which has no company as its partner;’

According to section 2(1)(ca) of the Act  “firm” shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932, and includes,—
(i) the limited liability partnership as defined in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008; or
(ii) the sole proprietorship, registered with the Institute;’;

A member who is a salaried employee of a CA in practice or  a firm of such chartered accountants or firm consisting of one or more chartered accountants and members of any other professional body having prescribed qualifications” -shall be deemed to be in practice for the limited purpose of the training of articled assistants.

Significance of the expressions “offers to perform” and “holds himself out …” used in section 2(2)- A person is deemed to be in practice not only when he is actually engaged in the practice of accountancy but also when he offers to render accounting services whether or not he in fact does so. In other words, the act of setting up of an establishment offering to perform accounting services would tantamount to being in practice even though no client has been served