Companies Amendment Bill: A Step Towards Ease of Doing Business
The Ministry of Corporate Affairs (MCA) has finalized the Cabinet note for the Companies Amendment Bill, expected to be introduced in the winter session of Parliament. The bill aims to bring about ease of doing business, decriminalization, and clarifications in the Companies Act.
Key Focus Areas of the Bill
1. Ease of Doing Business: Simplifying regulatory processes to promote business growth.
2. Decriminalization: Reducing penal provisions to ease compliance burden.
3. Clarifications: Providing clarity on existing provisions.
4. Domestic Multidisciplinary Practices Firm: Easing norms for setting up firms allowing varied professionals.
Provisions and Implications
– Multidisciplinary Practices: The bill proposes allowing professionals like CAs, CSs, lawyers, and actuaries to work together under a single firm structure, currently restricted in India.
– Support for Small Accounting and Audit Firms: Discussions are underway to support expansion of domestic smaller firms.
– National Financial Reporting Authority (NFRA): MCA considering delegating some NFRA functions outside its executive board for investigative and disciplinary functions, following a Delhi High Court order highlighting need for bifurcation of functions.
ICAI Views
The Institute of Chartered Accountants of India (ICAI) has been advocating for reforms in the Companies Act. Allowing multidisciplinary practices could open new avenues for CAs to offer integrated services, enhancing their role in business advisory and compliance.
Future Impact on CA Practice
1. Expanded Service Offerings: CAs may collaborate with other professionals, offering holistic business solutions.
2. Increased Collaboration: Potential for integrated services like those offered by international firms.
3. Regulatory Adjustments: Changes may lead to updated regulatory frameworks impacting CA practices.
4. Growth Opportunities: Ease of doing business measures could boost corporate activities, benefiting CA professionals.
Finance Minister Nirmala Sitharaman emphasized creating a “light-touch regulatory framework” to boost productivity and employment, indicating ongoing regulatory updates to align with global developments.
