Purchase of goodwill for ca firm
Querist :
Anonymous
(Querist) 22 November 2024
This query is : Resolved
My father was a chartered accountant with his own practice as a sole proprietor. He passed away recently, and now we want the goodwill to be transferred to my younger brother, who is also a CA. What is the process for the same?
T. Kalaiselvan, Advocate
(Expert) 22 November 2024
To purchase goodwill of a chartered accountant (CA) firm from a deceased father to a son, the following steps can be taken:
The application to purchase goodwill should be made within one year of the deceased member's death.
he application should include the following documents:
Death certificate of the deceased member
Succession certificate or will
Legal heir certificate
Affidavit from all legal heirs stating that there are no other legal heirs.
If one legal heir enters into the agreement, the other legal heirs must provide a "No Objection". For minors, the guardian must provide the "No Objection".
The intending purchaser must publish an advertisement about their intention to purchase the goodwill. The advertisement should include the address of the DCO to whom objections can be sent. The purchaser must send a copy of the advertisement to the DCO.
Goodwill is an intangible asset that represents a firm's reputation. It's the result of the efforts of all the partners in the firm. When a partner dies or retires, they are entitled to their share of the goodwill.
