Mumbai: The ministry of company affairs has suggested that the proposed limited liability partnership firms should be brought under a tax structure that is on par with global standards.

"We have suggested to the finance ministry that the taxation structure under the limited liability partnership (LLP) should be as per the international norms," Prem Chand Gupta, minister of company affairs said at a seminar organised by the PHD Chamber.

LLP is an alternative corporate business form that derives the benefit of limited liability of a company and flexibility of a partnership firm. The government introduced the Limited Liability Partnership Bill in Parliament in December 2006, which has since been referred to the department-related standing committee.

"The proposed bill provides that the LLP structure is available for any enterprise which fulfils the requirement of the law. There is also a provision for conversion of partners hip firms and unlisted companies into LLP," Gupta said.

He said a large number of existing entities would be able to take advantage of the new form of business once the law was in place, adding, there is no restriction on any particular class of business.

Gupta said the re-codification of the Companies Act was at an advanced stage. The amendment bill for enabling the Competition Commission of India to function with full powers was likely to be passed in the current session of Parliament, he added.