Sections 20A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter IVA was inserted into the Cost Accountants Act, 1959 by section 55 of Act 12 of 2022. It requires every firm to be registered with the Institute, creates a Register of firms, lists when a firm's name is removed and gives a one-month review of a refusal. As per S.O. 2184(E) dated 10 May 2022, Chapter IVA has not been brought into force, so what follows is the text as enacted, not the law in force. The Act was called the Cost and Works Accountants Act, 1959 until 10 May 2022.
Chapter IVA is enacted but not in force. As enacted, every firm must be registered with the Institute on an application to the Council by a partner or owner, in the prescribed manner. The Council may refuse a firm whose name is identical or similar to a registered firm or one in use, or if registration is undesirable in its opinion. A refused firm may apply for review within one month. The Council maintains a Register of firms and must remove firms in five listed cases. Check for a later commencement notification before acting.
How this article reads the Act
This article follows the Act as printed by the Institute (as amended in 2011), read with the 2022 Amendment Act to the extent brought into force by S.O. 2184(E) dated 10 May 2022. Section 55 of the 2022 Act, which inserts Chapter IVA, is not among the sections that notification brought into force. No later commencement notification was found in the sources consulted. Later amendments and notifications should be checked.
What is in force today
Because Chapter IVA is not in force, the in-force Act has no chapter on registering firms and no Register of firms. The Register that operates is the Register of members under section 19. The first piece of in-force law that touches firms is elsewhere:
- section 2(1)(ea) defines a "firm" to include an LLP and a sole proprietorship "registered with the Institute" (see our article on section 2);
- the proviso to section 7 lets a firm all of whose partners are members of the Institute in practice be known by its firm name as cost accountants;
- the 2022 additions to the Council's functions in sections 15(2)(ea) and 15A(ca), and the "Register" definition that mentions section 20B, are in force as wording, but depend on Chapter IVA to operate. See our article on sections 15 to 15B.
Firms of cost accountants that want to be organised properly meanwhile can read about their legal form in our guides on the Indian Partnership Act, 1932 and the LLP Act, 2008, and may consider firm registration under general law as a separate step from anything the Institute may later require.
The text as enacted
| Section | What the 2022 text says |
|---|---|
| 20A | Registration of firms |
| 20B | Register of firms: maintenance, particulars and publication |
| 20C | Removal from the Register of firms |
| 20D | Review before the Council |
Section 20A: registration of firms
Section 20A(1). Every firm shall be registered with the Institute on an application made to the Council by any partner or owner of the firm, in such manner and subject to such terms and conditions as may be prescribed. The manner, terms and conditions are in the regulations, which this series does not set out.
Proviso. The Council may refuse to register a firm if:
- the name of the firm is identical or similar to the name of any other firm already registered;
- the name is in use by any firm within or outside India; or
- in the opinion of the Council, registration of the firm is undesirable.
The third ground is wide and is left to the Council's opinion. The Act, as enacted, does not list what makes a registration "undesirable".
Section 20B: Register of firms
- 20B(1): the Council maintains, in the prescribed manner, a Register of firms.
- 20B(2): the Register includes such particulars about the firm as may be prescribed, including details of pendency of any actionable information or complaint or imposition of any penalty against it under Chapter V, in the prescribed form and at the prescribed intervals.
- 20B(3): the Council publishes, in the prescribed manner, a list of firms registered with the Institute as on 1 April each year, or at any other interval decided by the Council, and makes the list available to such persons, in such form and on payment of such amount, as may be prescribed.
This mirrors section 19 for members; compare our article on sections 19 and 20.
Section 20C: removal from the Register of firms
The Council shall remove from the Register of firms the name of any firm:
| Clause | Case |
|---|---|
| (a) | Which is dissolved or liquidated |
| (b) | From which a request to that effect has been received |
| (c) | Which is declared insolvent or bankrupt under the Insolvency and Bankruptcy Code, 2016 and remains undischarged |
| (d) | Which has been debarred from undertaking any activity relating to the profession of a cost accountant in practice under any law in force or by any competent court |
| (e) | In respect of which an order for removal has been passed under the Act |
Unlike section 20(1) for members, which uses "may" for most grounds, section 20C uses "shall" for all five.
Section 20D: review before the Council
- 20D(1): a firm aggrieved by a decision refusing registration may apply for review before the Council within one month from the date of the refusal.
- 20D(2): after considering the review application, the Council may confirm or set aside the decision, or pass such order as it considers appropriate.
The text does not say what happens to a firm that misses the one month, and it does not provide an appeal beyond the Council in this Chapter.
Illustration, as the text would work if brought into force
A firm called Sharma Rao and Co., with two partners, applies to the Council under 20A. Its name is identical to a firm already on the Register of firms, so the Council refuses. The firm has one month from the refusal to apply for review under 20D. If the Council confirms the refusal, the firm can change its name and apply afresh. This example uses the enacted text only; until a notification brings Chapter IVA into force, no such application is available under the Act.
A firm planning for the day Chapter IVA starts, or reviewing how its name and partners are set up, can use firm registration support to prepare its documents in advance.
The same rule for chartered accountants
The matching chapter of the chartered accountants' statute is explained in Sections 20A to 20D of the Chartered Accountants Act, 1949. Check that article for the position of that Act separately; this article describes only the 2022 text inserted here.
Need help preparing for firm registration?
Whether Chapter IVA is already in force on the day you read this depends on a notification that should be checked. If you run or advise a firm of cost accountants and want to prepare, firm registration support can help you review names, partners and constitution documents.
Key takeaways
- Chapter IVA (sections 20A to 20D) is enacted by Act 12 of 2022 but not in force as per S.O. 2184(E).
- As enacted, every firm must be registered with the Institute on an application by a partner or owner.
- The Council may refuse for an identical or similar name, a name in use, or where registration is undesirable.
- The Register of firms shows pending complaints and penalties; removal is mandatory in five cases.
- A refusal can be reviewed by the Council if applied for within one month.
Read next
- Section 2: definitions and when a cost accountant is in practice
- Sections 19 and 20: Register of members and removal of names
- Section 21: the Disciplinary Directorate
Disclaimer: Based on the Cost and Works Accountants Act, 1959 (now the Cost Accountants Act, 1959) as printed by the Institute of Cost Accountants of India (as amended in 2011), read with the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022 to the extent brought into force by S.O. 2184(E) dated 10 May 2022, as consulted on 3 October 2026. Regulations, rules, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.