The government on Wednesday said it will introduce amendments to the Acts governing institutes like ICAI, ICWAI and ICSI in the budget session to encourage professionals to come together and form Limited Liability Partnerships, a new form for setting up business entities.
"We are hopeful that the three Acts (ICAI, ICSI and ICWAI) would be placed for amendment in this budget session. Right now professional bodies are not able to form LLPs, because certain clauses in their respective Acts," Corporate Affairs Secretary R Bandyopadhay said.
The amendments, according to sources, will enable the LLPs comprising professionals from different fields to undertaking specialised functions as chartered accountants, cost accountants and law firms.
Welcoming the decision, Diljeet Titus, Senior Partner of law firm Titus and Co said, "Government needs to go a step forward and make enabling provisions for setting up of multi disciplinary LLPs with chartered accounts, lawyers, engineers, doctors etc as partners".
Such a multi-disciplinary firm, he added, would not only improve the quality of service but help in provide service to clients under one roof.
President of the Institute of Chartered Accountants of India (ICAI) Amarjit Chopra said, "The amendments would encourage setting up of LLPs by professionals."