An Insolvency Professional works on the guidelines of Insolvency and Bankruptcy Board of India (IBBI) and must be affiliated with an insolvency professional agency. They play a major role in the entire process of either dissolving or reviving of an insolvent company.

An insolvency practitioner has the authority to act on behalf of an insolvent individual or company. Passing the Limited Insolvency Examination (LIE) and completion of the Pre-Registration Education Course (PREC) is compulsory to become an insolvency specialist. Exam dates, syllabus, cut-offs, and other important notifications for LIE are published on the IBBI’s website.

Why become an Insolvency Professional?

Insolvency professionals play a crucial role in the liquidation and resolution procedures. The government has adopted strict changes in the Insolvency and Bankruptcy Code and an insolvency expert makes the process hassle-free for debtors and creditors both.

Eligibility Criteria:

An individual is eligible to become an insolvency professional if he/she:

– Is an Indian by nationality
– Is an adult or above 18 in age
– has a sound mind and good health
– Is solvent and hasn’t been reported insolvent
– Has the qualification and experience required
– Has not been sentenced for a term of more than 06 months by any competent court

We’ve listed down the mandatory stages to become an Insolvency Resolution Professional:

1. For professionals such as Chartered Accountants or Advocates with 10 years of experience or degree holders with 15 years of management experience:

– Clear the limited insolvency examination (LIE)
– Join an insolvency professional agency (IPA) within a year of clearing the LIE
– Complete the pre-registration educational course
– Submit an application to the IBBI for getting registered
– For a Chartered Accountant, he/she should be a member of the ICAI
– For a Company Secretary, he/she should be a member of the ICSI
– For a Cost Accountant, he/she should be a member of the ICAI
– For an Advocate, he/she should be enrolled with a Bar Council

2. For younger people with zero or less than 10 years of experience under their belts:

– Make sure you have a Bachelor’s degree from a university recognized by law
– Complete your Graduate Insolvency Programme
– Appear for the LIE and clear it
– Join an insolvency professional agency (IPA) within a year of clearing the LIE
– Complete the pre-registration educational course
– Submit an application to the IBBI for getting registered

Certain parameters have been set to confirm the registration of an individual as an Insolvency Professional. To determine an individual’s candidature, the IBBI may consider these below-listed criteria:

– Integrity, Reputation, and Character
– Absence of convictions
– Financial competence

Any applicant must be enrolled with an Insolvency Professional Agency. Once the entire process is completed, the applicant can proceed to work as an Insolvency Resolution Professional.

Aspirants can become an insolvency professional without taking the LIE as well, only for a limited period. Only Chartered Accountants, Company Secretaries, Cost Accountants or Advocates with over 15 years of experience are eligible for this program. Eligible individuals can submit an application for registration by paying a non-refundable application fee of Rs.5000. Individuals selected under this program would be registered for a limited period of time. After the expiry of the registration, they cannot pursue work as an Insolvency Professional.