MCA Invites Public Comments on Establishing Multi-Disciplinary Partnership Firms [Read Memorandum]

The Memorandum signals the government’s intention to create a framework that will allow Indian consulting and auditing firms to grow into globally competitive players. Stakeholders have been asked to submit their suggestions by 30 September 2025 via the MCA e-consultation portal or email.

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According to the background note circulated along with the memorandum, the global consulting and auditing industry is valued at nearly USD 240 billion, dominated by international networks such as the Big Four. Despite India’s large pool of professional talent, domestic firms remain small players, especially in high-value audits and consulting. The MCA has emphasized that building large Indian firms is essential not only for competing in international markets but also for strengthening India’s economic sovereignty and achieving the vision of Atmanirbhar Bharat.

The Challenges Identified

The memorandum points out several hurdles that restrict the growth of Indian professional service firms:

• Advertising restrictions prevent firms like chartered accountants, lawyers, and company secretaries from building strong brands.
• Restrictions on multidisciplinary partnerships stop professionals from working together under one firm, unlike global giants that offer integrated services.
• Fragmented licensing rules across different regulators create silos and limit collaboration.
• Public procurement norms often favor global firms by setting eligibility conditions based on international turnover and presence.
• Lack of global networks leaves Indian firms without the scale, systems, and reach that international firms enjoy.

Steps Already Taken

The government and professional bodies have taken some measures in recent years. For example, in 2021, the Reserve Bank of India restricted the number of audits a single firm can undertake, creating space for more Indian firms in the sector. The Institute of CharteredAccountants of India (ICAI) has also encouraged consolidation among small firms to build larger entities. However, MCA notes that these steps are not enough to bring Indian firms to the international level.

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Next Steps

To address these gaps, the MCA has circulated a questionnaire seeking inputs from stakeholders. The questions cover areas such as regulatory changes needed to allow MDPs, safeguards for implementation, dispute resolution mechanisms, international best practices, and ways to encourage brand building without violating professional ethics.

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