New Delhi: Professionals like chartered accountants, consultants and lawyers will be able to run their businesses in India in sync with global practices through a new and flexible form of ownership when a bill in this regard gets Parliamentary approval.
The Limited Liability Partnership Bill 2008 was today passed by the Rajya Sabha after a brief discussion.
“It is not true that the new form of ownership will help only the foreign professionals. Our professionals will be able to have their businesses globally,” Corporate Affairs Minister Prem Chand Gupta said replying to the debate.
Once the new ownership structure for partnership comes into force, CAs, company secretaries and cost accountants will all be able to provide their services from a combined umbrella organisation.
However, to become fully operational, certain consequential laws like those relating to income tax would also have to be changed, Gupta conceded.
He said while the Naresh Chandra Committee had suggested the limited liability partnerships for professionals alone, the government has gone much beyond and included even small-scale firms in the ambit of the new ownership structure.
The promoters will be able to register LLPs electronically, he said.
“No partner would be liable on account of the independent or unauthorised actions of other partners or their misconduct,” the statement of objects of the Bill said.
It said a firm, private company or an unlisted public company would also be allowed to be converted into an LLP.