Insolvency Professional Registration explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Under Section 3(19), an insolvency professional is a person enrolled under Section 206 with an insolvency professional agency as its member and registered with the Board as an IP under Section 207. Both are required — Section 206 prohibits rendering services as an IP without each.
The two-step requirement
- Section 206 — no person shall render services as an insolvency professional without being enrolled as a member of an IPA and registered with the Board.
- Section 207 — every IP shall, after obtaining membership of an IPA, register with the Board within such time, in such manner and on payment of such fee as specified by regulations.
The Board may specify the categories of professionals or persons possessing such qualifications and experience in finance, law, management, insolvency or such other field as it deems fit.
The examinations — Regulation 3
Insolvency professional registration is preceded by examination. The Board conducts two, and insolvency professional registration under Regulation 5 depends on which has been passed.
| Examination | Purpose |
|---|---|
| National Insolvency Examination | Tests the knowledge and practical skills of individuals in insolvency, bankruptcy and allied subjects |
| Limited Insolvency Examination | Tests the knowledge and application of knowledge in insolvency, bankruptcy and allied subjects |
The syllabus, format and frequency of the Limited Insolvency Examination, including qualifying marks, must be published on the Board's website at least three months before the examination.
Ineligibility — Regulation 4
No individual is eligible to be registered as an IP if he:
- is a minor;
- is not a person resident in India;
- does not have the qualification and experience specified in Regulation 5 or Regulation 9;
- has been convicted for an offence punishable with imprisonment exceeding six months or involving moral turpitude, and five years have not elapsed from expiry of the sentence;
- is an undischarged insolvent or has applied to be adjudicated insolvent;
- has been declared of unsound mind; or
- is not a fit and proper person.
The general conviction bar operates for five years after the sentence expires. But where a person has been convicted of any offence and sentenced to imprisonment for seven years or more, the proviso states that he shall not be eligible to be registered — with no period after which eligibility revives.
Fit and proper is determined by the Board on any consideration it deems fit, including integrity, reputation and character; absence of convictions and restraint orders; and competence, including financial solvency and net worth.
Qualifications and experience — Regulation 5
An individual is eligible for registration if he:
- has passed the Limited Insolvency Examination within twelve months before the date of his application for enrolment with the IPA;
- has completed a pre-registration educational course within twelve months from the date of payment of the non-refundable application fee under Regulation 6, from an IPA after enrolment as a professional member;
and has successfully completed the National Insolvency Programme or the Post Graduate Insolvency Programme, or has experience of:
- ten years in law, after a bachelor's degree in law;
- ten years in management, after a master's degree in management or a two-year full-time Post Graduate Diploma in Management;
- fifteen years in management, after a bachelor's degree; or
- ten years' experience as a chartered accountant registered with ICAI, a company secretary registered with ICSI, a cost accountant registered with the Institute of Cost Accountants of India, or an advocate enrolled with the Bar Council.
Application and certificate — Regulations 6 and 7
The mechanics of insolvency professional registration with the Board are short.
- Application to the Board in Form A with a non-refundable fee of twenty thousand rupees.
- The Board acknowledges within seven days.
- The Board may require additional documents, information or clarification within reasonable time, or personal appearance by the applicant or an authorised representative.
- The Board may grant a certificate of registration in Form B within thirty days of receipt of the application, excluding time given for additional documents or appearance.
Functions and obligations — Section 208
Every insolvency professional shall abide by the following code of conduct:
- to take reasonable care and diligence while performing his duties;
- to comply with all requirements and terms and conditions specified in the bye-laws of the IPA of which he is a member;
- to allow the IPA to inspect his records;
- to submit a copy of the records of every proceeding before the Adjudicating Authority to the Board and to the IPA; and
- to perform his functions in such manner and subject to such conditions as may be specified.
Compliance checklist
- Obtain IPA membership before applying to the Board.
- Pass the Limited Insolvency Examination within twelve months of the enrolment application.
- Complete the pre-registration educational course within twelve months of the fee payment.
- Establish ten or fifteen years' experience under the correct limb.
- Apply in Form A with the twenty thousand rupee fee.
- Submit records of every AA proceeding to both the Board and the IPA.
- Keep records available for IPA inspection.
Common mistakes
- Applying to the Board before IPA enrolment.
- Letting the twelve-month examination validity lapse.
- Counting fifteen years in management as ten because of a postgraduate diploma that is not a two-year full-time PGDM.
- Filing AA proceeding records with the Board only.