Government on 28.04.2010 introduced in the Rajya Sabha three bills to enable CAs, Company Secretaries and Cost Accountants to form limited liability partnership firms in line with global practices.
Bills to amend the Chartered Accountants Act, Cost and Works Accountants Act and Company Secretaries Act were introduced by Corporate Affairs Minister Salman Khurshid.
Khurshid said it is proposed to extend the benefits of the Limited Liability Partnership (LLP) Act 2008 to the firms of CAs, Cost Accountants and Company Secretaries.
Under the LLP, the liability of the partners is limited to a particular limit, mutually agreed amongst them.
The LLPs are a hybrid form of businesses between the partnership firms and the corporates under the Companies Act and are more suitable for services like CS, CAs and even law firms.
In the advanced nations, consultancy and accountant firms work as LLPs.
Since several of the global consultancy and accountancy firms have opened businesses in India, they will be able to register themselves as LLPs in the country.