Guidelines for an Insolvency Professional to act as an Insolvency Resolution Professional and Liquidator
- Blog|Insolvency and Bankruptcy Code|
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- 4 Min Read
- By Taxmann
- Last Updated on 30 May, 2022
As per Insolvency and Bankruptcy Code (IBC) 2016, an insolvency Professional is a person who is enrolled with the Insolvency Professionals agency as its member and registered with the Insolvency and Bankruptcy Board of India as an Insolvency Professionals. In order to become an Insolvency Professional, one must be either a Chartered Accountant, Company Secretary, Cost Accountant or an Advocate with minimum the year of experience or else a graduate with fifteen years of experience in managerial services. Then he must pass the limited insolvency examination and enroll himself as a professional member with an insolvency professional agency and complete a pre-registration educational course by the IPA. Then he needs to apply to the Board for registration as an Insolvency Professional within a period of 12 months of clearing the limited Insolvency Examination.
Eligibility to become an insolvency Professional:
To become an insolvency professional an individual should be a resident in India and not a minor and should be solvent and is of sound mind and have qualification and experience as specified by the Board. The person must have not been convicted by any competent court for an offence that is punishable with imprisonment for a term which is exceeding six months or any offence that involves moral turpitude and a period of five years has not elapsed from the date of expiry of his sentence. The person should be fit and a proper person. To get more information on syllabus, frequency of examination, qualifying marks of Limited Insolvency Examination here. Once you have passed the limited insolvency examination, you can approach an IPA (Insolvency Professional Agency) to enroll you as an Insolvency Professional with them. Below is the list of IPAs where you can get enrolled:
- Indian Institute of Insolvency Professionals of ICAI
- ICSI Institute of Insolvency Professionals
- Insolvency Professional Agency of Institute of Cost Accountants of India
Registration of an Insolvency Professional:
An application fee of ten thousand rupees must be paid for each revision of your registration. This fee is non-refundable and can come with extra applicable taxes. One could pay it while filling their e-form for registration as an Insolvency Professional through any online mode like debit or a credit card. This fee needs to be paid every five years in order to revise and re-instate their registration with the Board. Once you have submitted your application while fulfilling all the terms and conditions, the Board may grant you registration within sixty days of submission of your application. This sixty day do not include the time to clarify or submit additional documents in case required for your registration. Once you are registered you will receive a certificate of registration from the Board which will legalize you to carry on your activities of an insolvency professional. Physical copy of this certificate will be dispatched from the Board to your registered address within 21 days of grant of your registration. To continue your registration with the board, you need to fulfill all the terms and conditions as applicable. You need to undergo continuing professional education as required by the Board and pay the renewal fees to the Board every five years.
Other terms to continue your service as Insolvency Professionals:
An insolvency professional should not be engaged in any other employment except in the case when he has temporarily submitted his certificate of membership with the insolvency professional agency with whom he is enrolled as a professional member. In case you wish to shift from one Insolvency Professional Agency to another, you can do that subject to have prior permission from the Board and only after receiving a no objection from both the concerned insolvency professional agencies. Though, a person should not be a minor while applying for an Insolvency Professional Certificate, there is no upper age limit to this. A non-individual like a corporate body or partnership fir cannot become an Insolvency Professional. Only an eligible individual could become an Insolvency Professional under said terms and conditions. Also, this individual must be citizen of India. A non-citizen cannot render his services as an Insolvency Professional unless he is a partner or director of an Insolvency Professional Agency.
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