Section 5 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.
Section 5 divides the members of the Institute into two classes, associates and fellows. A person becomes an associate on the name being entered in the Register of members, and may use the letters A.C.A. An associate moves to the fellow class after the experience that section 5(3) describes, on application and on payment of the fee the Council notifies, and may then use the letters F.C.A.
This article is as per the Act as printed in the ICAI edition of 2022 (amended up to the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022). Later amendments and notifications should be checked.
Members are divided into two classes: associates and fellows. On entry in the Register of members a person is deemed an associate and may use A.C.A. An associate who has been in continuous practice in India for at least five years, or who has been an associate for a continuous period of not less than five years and has the qualifications the Council prescribes for equivalent experience, is entered as a fellow on application and payment of the fee the Council determines by notification and may use F.C.A. The 2022 Amendment removed the fee cap, in force from 10 May 2022.
Section 5(1): two classes of member
Section 5(1) says the members of the Institute shall be divided into two classes, designated respectively as associates and fellows. The Act defines both words in section 2(1): an associate is an associate member of the Institute and a fellow is a fellow member. The division does not create two kinds of rights under section 5 as printed. It creates two designations, each with its own letters. If a designation question is holding up a filing or a letterhead, a legal consultation can settle it quickly.
Section 5(2): becoming an associate
Under section 5(2) any person, on his name being entered in the Register of members, is deemed to have become an associate member of the Institute. He is entitled to use the letters A.C.A. after his name to indicate that he is an associate member of the Institute of Chartered Accountants.
The words "Register of members" replaced "Register" from 10 May 2022. The routes into the Register are in section 4. Every new member therefore starts as an associate, whichever class of section 4(1) he enters through.
Section 5(3): becoming a fellow
Section 5(3) provides the route to fellowship. Two kinds of associate qualify:
- A member, being an associate who has been in continuous practice in India for at least five years, whether before or after the commencement of the Act, or partly before and partly after.
- A member who has been an associate for a continuous period of not less than five years and who possesses such qualifications as the Council may prescribe with a view to ensuring that he has experience equivalent to the experience normally acquired as a result of continuous practice for five years as a chartered accountant.
Either kind is entered in the Register of members as a fellow of the Institute and is entitled to use the letters F.C.A. after his name. The conditions are:
- An application made and granted in the prescribed manner, that is, the manner set out in the regulations made by the Council.
- Payment of such fees as may be determined, by notification, by the Council. The edition points to Appendix No. (9) for the notification.
The Act prints no fee amount. Until the 2022 Amendment, the sub-section carried a statutory cap on the fee and a proviso that allowed a higher fee with Central Government approval. Both were omitted by the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022, in force from 10 May 2022. The edition shows the proviso position as omitted, so the sub-section ends with the condition on fees and nothing after it.
"Continuous practice" and "in practice"
The first route turns on continuous practice in India. What counts as "in practice" is explained in section 2(2). The Act does not define "continuous", and the five-year periods in both routes are as printed. The second route exists for associates who have not practised but have equivalent experience; the qualifications are left to the regulations.
What a fellow and an associate can and cannot do differently
Based only on the Act as printed, the main difference is the designation: A.C.A. for an associate, F.C.A. for a fellow. Both are chartered accountants under section 2(1)(b), because that clause defines a chartered accountant as a person who is a member of the Institute. Whether a member may practise depends on the certificate of practice in section 6, not on the class of membership.
| Point | Associate | Fellow |
|---|---|---|
| How a person enters the class | on name being entered in the Register of members (s.5(2)) | on application, five-year test and fee (s.5(3)) |
| Letters | A.C.A. | F.C.A. |
| Fee | as determined for entry under section 4(3) | as determined, by notification, by the Council; no cap in the Act |
| Is a chartered accountant | Yes | Yes |
A worked example
Nisha enters the Register of members in a given year and is an associate with the letters A.C.A. She works in practice in India for five continuous years. She then applies in the prescribed manner and pays the fee the Council has determined by notification. Her name is entered as a fellow and she may use F.C.A. A colleague who has been an associate for five continuous years but never practised could instead rely on the qualifications the Council prescribes for equivalent experience.
What the Act says about misuse of the letters
The Act does not leave the letters open to anyone. Under Chapter VII, claiming to be a member or using the designation without being entitled is an offence. The offence and its punishment are explained in the article on sections 24 and 24A.
Need help with membership status or designation?
If you are unsure whether you qualify for fellowship, or you are reviewing letters and designations used on firm stationery, a legal consultation can read section 5 with the regulations and the Council's notification. We look at the facts, not just the section.
Key takeaways
- Members are of two classes, associates and fellows, under section 5(1).
- Entry in the Register of members makes a person an associate with the right to use A.C.A.
- An associate with five years of continuous practice in India, or five years as an associate plus the prescribed qualifications, can be entered as a fellow with the right to use F.C.A.
- A fellow is entered on application in the prescribed manner and payment of the fee the Council determines by notification.
- The Act prints no fee amount; the earlier cap was omitted from 10 May 2022.
- Both classes are chartered accountants; practice needs a certificate of practice.
Read next
- Section 4 of the Chartered Accountants Act, 1949: entry in the Register of members
- Section 6 of the Chartered Accountants Act, 1949: certificate of practice
- Sections 24 and 24A of the Chartered Accountants Act, 1949: penalty for falsely claiming membership
- Sections 4 and 5 of the Cost Accountants Act, 1959: entry, fellows and associates
Disclaimer: Based on the Chartered Accountants Act, 1949 as printed in the ICAI edition of 2022 (amended up to Act 12 of 2022), read with S.O. 2184(E) dated 10 May 2022, which brought only part of the 2022 amendments into force, as consulted on 3 October 2026. Regulations, rules, Council guidelines, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.