MCA seeks stakeholder inputs on creating multi-disciplinary partnership firms

The corporate affairs ministry on Wednesday sought stakeholder comments on setting up multi-disciplinary partnership (MDP) firms where various professionals, including chartered accountants, company secretaries, lawyers, and actuaries, would be able to work together under a single firm structure.

Currently, there are several restrictions on creating such firms. The move is part of the government’s efforts to create large home-grown firms that can grab a slice of the lucrative global auditing and consultancy market, according to an office memorandum of the ministry.

It has asked stakeholders to submit their comments on the issue by September 30.

It has put out a background note that details current rules and regulations. It wants the stakeholders to identify the challenges faced by Indian firms and submit their suggestions for necessary amendments to laws, rules, and regulations.

Currently, the Big Four—EY, Deloitte, KPMG and PwC—along with Grant Thornton and BDO, dominate the Indian audit ecosystem, with their local affiliates having handled assignments of 326 of the 486 Nifty-500 companies as of March 2025, according to a primeinfobase.com report.

“The Ministry of Corporate Affairs is actively working towards amending the relevant Acts, rules, and regulations to support the growth of domestic MDPs and enhance their international competitiveness,” the ministry said.Given the restrictions, these professionals often operate in silos, limiting collaboration and the ability to offer integrated services like those provided by international firms.This restriction also makes them less efficient, limits new ideas, and stops them from growing into full-service firms that can compete at the international level.

The background note also flags advertising and marketing ban on domestic accounting firms, presence of different regulators for licensing in different professional services, restrictive public procurement and empanelment processes and inadequate global collaborations. The ministry has asked the stakeholders to come out with their suggestions on these issues.

The suggestion to review the requirement of “majority of partners” referred to in proviso to Section 141(1) of the Companies Act, 2013 is under consideration, the ministry said.

Even the Institute of Chartered Accountants of India’s 2021 MDP framework permits only six professions and excludes MBAs, IT and insolvency experts from forming firms together, according to the ministry’s note.