How to become an Insolvency professional?

To enroll as an Insolvency Professional an individual has to qualify the eligibility criteria set under insolvency and bankruptcy code, 2016.

Insolvency Professional must be of the age not less than 18 years of age i.e. should be a major

Insolvency Professional must be a Resident of India
Insolvency professional must not have been convicted by any competent court of any offense involving moral turpitude or any offense punishable with imprisonment for a term exceeding six months, and a period of five years has not elapsed from the date of expiry of the punishment.
No person who has been convicted of any offense and sentenced to imprisonment for a period of seven years or more is eligible to be enrolled as insolvency professional under IBC.
Any person who has been an undischarged insolvent or has applied to be adjudicated as an insolvent cannot be registered as insolvency professional.
Insolvency professional must of sound mind.
He shall be fit and proper for which he has to qualify following criteria
He must be a person of Integrity.
He must hold good reputation and character.
He must be competent
He must be financially sound.

Procedure to become an Insolvency Professional

There are following ways to get enrolled as an Insolvency Professional provided the individual qualifies the eligibility criteria.

National Insolvency Examination

To become an Insolvency Professional an eligible individual can appear for national insolvency examination set by Insolvency Board of India. Any individual appearing for this examination does not necessarily require any prerequisite experience unless Insolvency Board of India officially announce.

Limited Insolvency Examination

An individual can become an Insolvency Professional by appearing for Limited Insolvency Examination only when that individual has 10 years’ experience as-

A Chartered Accountant registered under Institute of Chartered Accountants of India
A company secretary registered under Institute of Company Secretaries of India
Cost Accountant registered under Institute of Cost Accountants of India
An Advocate enrolled with Bar Council

Limited Period Registration

An individual can be appointed as an Insolvency professional for limited period or as interim Insolvency Professional if he/she has experience of 15 years as-

A Chartered Accountant registered under Institute of Chartered Accountants of India
A Company Secretary registered under the Institute of company secretaries of India
Cost accountant registered under Institute of Cost Accountants of India
An Advocate enrolled with Bar Council

Direct Registration

Any person who is a qualified Chartered Accountant, Company Secretary, Cost Accountant or Advocate has been in practice for not less than 15 years of a time period can apply for registration as an Insolvency Professional for a limited time period. The applicant has to submit the application fee of Rs.5000 along with the application. And once the time period for which the Insolvency Professional was appointed expires, that individual cannot take any assignment as Insolvency professional.

Disclaimer – Please note that the above view is based on personal interpretation and for general awareness. The readers are required to take opinion from the IBC professionals or Insolvency Professionals before relying on the article. For any clarifications, please write to us at ibc@centrik.in