India to soon have its global brand of CAs, thanks to LLP
September, 15th 2008
Exuding confidence that India will soon have its own brand of chartered accounting firms competing with the best worldwide, corporate affairs minister Prem Chand Gupta has said the domestic accounting fraternity would be bolstered by the passage of new legislations like Limited Liability Partnership (LLP) Bill, as well as changes in the new company law.
LLP Bill, which is soon to be placed before the parliament, would allow domestic CAs to join hands to form big organisations. One of the major reasons considered to be coming in the way of Indian firms to compete with global consultancy operations in India is their present incapacity to come under one roof to provide diversified services to clients.
An archaic regulatory framework restricting the number of professionals coming together to constitute multi-faceted firms, is likely to change with the LLP bill seeking to remove the bar on the number of experts coming together.
LLP has been brought and now CAs can have as many partners in their firm as they want, similar to other firms like Ernst & Young, PwC, so that they can also spread their firms across the globe, Mr Gupta said while laying the foundation stone of Centre of Excellence for accounting regulator ICAI in Jaipur on Thursday.
Domestic CAs will now have the professional capacity to set up multi-disciplinary firms, he said. Domestic chartered accountants who recently gained rights to advertise themselves are expected to reap huge gains once the LLP bill is passed. The proposed law will enable domestic CAs to gain competence similar to foreign consultancy majors.