MCA Requests Views on Multi-Disciplinary Partnership Firms: A New Era for Professional Services in India

The Ministry of Corporate Affairs (MCA) has recently invited stakeholder feedback on permitting Multi-Disciplinary Partnership (MDP) firms in India. The consultation process, up to 30 September 2025, can bring about a revolutionary shift in professional services by making it possible for professionals from different disciplines to practice under one roof.

Now, India's regulatory environment requires chartered accountancy, company secretarial practice, law, and actuarial sciences to operate independently of each other. International markets, however, have been moving toward unified service models where clients can receive legal, financial, and compliance guidance under one umbrella. The MCA's plan seeks to align India with the global practice but strengthen domestic firms as well.

The need for MDPs arises due to the growing preference for integrated and coordinated services. A number of government and private entities are more likely to deal with large, multidisciplinary organizations with the ability to deliver diverse needs. In practice, this niche has been dominated by multinational networks such as the Big Four, leaving Indian players at a disadvantage. With this less rigid structure, the government hopes to create domestically competitive firms that would be in keeping with the concept of Atmanirbhar Bharat.

The consultation note has also identified several existing impediments. The requirement under Section 141(1) of the Companies Act that audit firms must have a majority of the partners as chartered accountants restricts interaction with other professionals. Professional councils also prohibit advertising and brand building, limiting the ability for Indian companies to compete with global players. Second, dispersed regulation across different professions and limiting tender terms in government contracts often keep Indian companies out of scaling up.

Reforms proposed under consideration include review of Companies Act provisions on majority control, the addition of a wider list of professionals such as insolvency professionals, IT professionals, and management graduates, and a re-examination of norms pertaining to advertising and branding. Procurement and empanelment norms can also be redesigned to provide a level playing field while regulators would examine harmonizing supervision across professions.

Though much is promised from the new way, something important is also questioned. The independence of lawyers and accountants must be preserved in any such integrated structure for fear of conflicts of interest diluting professional obligations. Concerns must also be raised regarding liability allocation and regulation when many professions are brought under one partnership. Ethical standards, particularly for advertising, will need to be balanced equally against global competitiveness requirements.

Experience elsewhere can be a useful template. The United Kingdom, Singapore, and Australia already have multidisciplinary practices with some safeguards for professional independence. If India adapts these models thoughtfully, it can create a system that promotes advancement without giving away ethical obligations.

The MCA proposal is not merely a regulatory reform but a sign of a drive to re-imagine the architecture of professional services in India. Well-designed, MDPs can enable local firms to gain the scale and visibility to compete with global networks without diluting the client on combined, high-quality advisory solutions. The coming months will be key to how stakeholders respond and how India will balance innovation with safeguarding professional integrity.

Author: Ritika Khatri, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.