Indian firms will now be able to adopt a
limited liability partnership (LLP) ownership structure after the
government rubber stamped the move.

The long awaited move will enable firms to
form large partnerships of professionals, including those from
outside the accountancy field.

Accountancy firms will be able to employ
additional chartered accountants and partners exceeding the current
cap that was set at 20 professionals per firm.

The LLP structure is expected to be widely
embraced by firms as it will allow them greater access to capital
and the sharing of liability across a partnership. Firms will also
be able to tap into a broader skills set.

The Indian government has also given the green
light for LLPs in the mining, power, roads and highways,
manufacturing activities, drugs and pharmaceuticals sector.