A. Compliance for Insolvency Professional (Individual) in accordance with IBBI (Insolvency Professionals) Regulations, 2016.
I. Procedure for grant of Certificate of Registration from IBBI (If Applicant is an individual):
i. Prerequisite Condition:
Who can apply:
a. CA/CS/CMA/Advocate who is a member of their respective institute/ Bar Council & having 10 years of experience.
OR
b. Graduate having 15 years of experience in management after receiving Bachelor’s degree
OR
c. CA/CS/CMA/Advocate/E / B.Tech/ Post-graduate with aggregate 50% marks (age limit 28 years) has passed Graduate Insolvency Programme.
The above mentioned Applicant should pass the Limited Liability Examination conducted by the IBBI. (Registration for the same can be done through Insolvency and Bankruptcy Board of India (ibbi.gov.in)
In addition to the above, he fulfills the eligibility mentioned in regulation 4.
ii. Enrollment with Insolvency Professional Agency:
Time period for enrolment:
Within 12 months of passing the Limited Liability Examination enrol with the respective Insolvency Professional Agency (IPA) namely:
-
- Indian Institute of Insolvency Professionals of ICAI
- CS Institute of Insolvency Professionals
- Insolvency Professional Agency of Institute of Cost Accountants of India.
Procedure for enrolment for IIIPICAI
a. Go to https://www.iiipicai.in/ and make the payment for enrolment by clicking on Online Payment.
b. After that download the form from- Microsoft Word – Enrolment Application Form of IIIPI (iiipicai.in) and submit the form along with all the required attachments to the address mentioned by IIIPICAI. You can also submit the form online.
c. The IPA will issue Certificate of Membership in Form A
Accordingly follow the procedure for CS/CMA
-
- For CS: ICSIIIP | Homepage
- For CMA: Insolvency Professional Agency of Institute of Cost Accountants of India (ipaicmai.in)
After enrolment, an individual should complete a pre-registration educational course from an IPA (Read circular no. IPA/011/2018 dated 23rd April 2018)
iii. Application for Certificate of Registration to IBBI (Reg 6 & 7):
a. After enrollment with IPA an Insolvency Professional individual should make an Application to the Board in Form A along with a fee of Rs. 20,000/- to the Board
b. If the Board is satisfied it may grant certificate of registration in Form B within 60 days of receipt of application. (The login credentials is mailed to you by the Board)
iv. Procedure for obtaining Authorization for Assignment (AFA) (Reg 7A):
What is AFA:
a. For accepting/ undertaking the assignment, Insolvency Professional needs to hold valid AFA issued by IPA.
b. IPA will issue AFA only if IP is not in any employment.
Procedure for obtaining AFA
a. Login to IBBI Portal
b. Go to AFA< List form AFA
c. Enter the relevant details and submit the form.
d. If the information is correct the IPA will issue AFA in Form B
e. AFA is valid for the period of 1 year from the date of issuance or till the age of 70 years WIE
Renewal of AFA (Eligibility)
For renewal, an IP should undertake:
Minimum 10 CPE Hours: Each calendar year
AND
Minimum 60 CPE Hours: in 3 calendar years.
II. Regulatory fee and other compliances to be carried with the Board after granting the certificate:
|
Sr no. |
Particulars | Time period |
| One time fee for making Application in Form A | Rs. 20,000/- | |
| 1 | Fee of Rs. 20,000/- to be paid every 5 financial years after the financial year in which certificate is granted | On or before 30th April of the year it falls due |
| 2 | Fee @1% of the Professional Fee earned as insolvency professional in preceding FY along with statement in Form E. | On or before 30th April every year |
| 3. | Fee @1% of the cost being booked in Insolvency Resolution Process Cost for hiring any professional along with statement in Form EA (Regulation 31A of IBBI (CIRP) Regulation, 2016) | Within 30 days of end of each quarter or upon closure of the process, WIE |
| 4. | Onetime fee: (Reg 31A of IBBI (CIRP) Regulation, 2016)
Fee @0.25% of the Realisable Value to creditors under the Resolution Plan approved by Hon’ble NCLT. (where realizable value is more than liquidation value) |
Upon approval of Resolution Plan by Hon’ble NCLT |
* any delay in payment of fee shall attract simple interest @12% p.a on the amount of fee unpaid (Reg 15)
III. Regulatory fee and other compliances to be carried with the IPA after getting enrolled (IIIPICAI):
|
Sr no. |
Particulars | Time period |
| 1 | Fee payable at the time of enrollment with IIIPI | Fee paid during the period:
1st April to 30th September : Rs. 14,160/- 1st October to 31st March: Rs. 8,260/- |
| 2 | Annual Membership Fees of IIIPI | Rs. 10,000/- plus GST @18% on or before 30th April each year. |
IV. Summary of Forms mentioned in the Second Schedule for Individual Insolvency Professional (IBBI Forms):
| Forms | Description |
| Form A | Application for Registration as an Insolvency Professional |
| Form B | Certificate of Registration issued by the Board |
| Form E | Annual Statement of Professional fee of Insolvency Professional |
| Form EA | Statement of Fee for availing professional services during CIRP |
V. Summary of Forms under IIIPICAI
|
Forms |
Description |
| Enrollment Form | Microsoft Word – Enrolment Application Form of IIIPI (iiipicai.in)
(Can submit online also) |
| Form A | Certificate Of Professional Membership (Under bye-law 10 of the IIIPI’s Bye-laws) |
| Form B | Certificate for Authorisation For Assignment (Under bye-law 12A of the IIIPI’s Bye-laws) |
B. Compliances for Insolvency Professional Entity in accordance with IBBI (Insolvency Professional) Regulations, 2016.
I. Procedure for grant of Certificate of Recognition/ Registration from IBBI (If Applicant is an IPE):
i. Application for Recognition as Insolvency Professional Entity (Only Company/ Registered Partnership Firm/ LLP can become IPE):
Eligibility:
a. Objective to provide support services to IPs or to carry on the activity of an IP or Both
b. Net worth: not less than 1 Crore
c. Majority of Equity Shares & Voting Rights are held by IPs who are directors
d. Majority of capital contribution is made by IPs
e. Majority of Partners/ Directors are IPs
f. Majority of Whole Time Directors are IPs
g. None of them are partner/ director of another IPE
Procedure:
a. Eligible IPEs may make an Application to the Board in Form C along with fee of Rs. 2 Lakhs
b. The Board may grant Certificate of Recognition in Form D within 60 days of making an Application
ii. Application for Enrollment with IPA:
As you are aware that with the amendment to the IBBI (Insolvency Professionals) Regulations, 2016 vide notification dated 28 September 2022 (IBBI/2022-23/GN/REG099), the Insolvency Professional Entity (IPE) is authorized to undertake tasks as an Insolvency Professionals (IPs) in addition to providing support services for specific IPs. Based on this amendment, IPEs must have to enroll with an Insolvency Professional Agency before registering with the IBBI.
Procedure for enrollment with IPA (IIIPICAI):
√ Make Payment to IIIPICAI by visiting https://app.iiipicai.in/regpayments/ (Fee structure is mentioned below)
√ After making payment fill the IPE Enrollment Form (Form AA), received by you at your registered mail id
√ The following documents needs to be attached with the form:
a. Certified Copy of Board/Partner’s Resolution authorising the person to make this application and correspondence with the Board in this respect.
b. Copy of Certificate of Recognition
c. Copy of CIN/LLPIN/Certificate of Registration of the applicant
d. Copy of PAN of the Applicant
e. Copy of GST Registration Certificate of the applicant
f. Copy of Memorandum of Association/ LLP Agreement/ Registered Partnership Deed of the applicant.
g. Copy of Net worth issued by the Chartered Accountant, if any
h. Copy of Financial Statements of the applicant (including Provisional Financial Statements as on same date on which net worth of the applicant has been submitted)
i. Copy of Certificate of Registration issued by the Board to IPs who are directors or partners, as the case may be, of applicant
j. Copy of Invoice of IPE Enrolment fee paid to IIIPI
k. ITR of last three years ofall the Whole-Time Directors/Partners of IPE
l. CIBIL score report downloaded from any RBI registered Credit Information Company ofall the Whole-Time Directors/Partners of IPE
After attaching the above mentioned documents send the physical IPE Application Form via courier at registered IPA Address.
If all the information are correct, you will receive Certificate of Professional Membership from IPA.
iii. Application for Registration as an Insolvency Professional to the Board :
After receiving certificate of Professional Membership from IPA, an IPE should make an Application to the Board in Form AA (Application Form is given in Circular no.: . IBBI/2022-23/GN/REG099) along with a non refundable fee of Rs. 2,00,000/- (Reg 6(1A)
Along with the Application, the following documents needs to be attached:
a. Certified copy of Board / Partners’ Resolution authorising the person to make this application and correspond with the Board in this respect.
b. Copy of Certificate of Recognition.
c. Copy of Certificate of Professional Membership issued by the Insolvency Professional Agency
The Board may grant Certificate of Registration in Form B within 60 days of making the application provided that it fulfils the eligibility mentioned in Regulation 4(2).
iv. Procedure for obtaining Authorization for Assignment (AFA)(Reg 7A):
The procedure which requires an Individual Insolvency Professional for obtaining AFA, needs to be followed for IPA also.
II. Regulatory fee and other compliances to be carried with the IPA after getting enrolled (iiipicai):
|
Sr no. |
Particulars | Time period |
| 1 | Fee payable at the time of enrollment with IIIPI (one time) | Rs.25,000/- |
| 2 | Annual Membership Fee | Rs. 50,000/-
50% if enrolment is on/after Oct.1 |
| 3 | Updation (of Change in Partner/Director) Fee | Rs. 2,000/- |
III. Regulatory fee and other compliances to be carried with the Board after granting the certificate:
|
Sr no. |
Particulars | Time period |
| 1 | One time fee for making Application for Recognition as IPE in Form C | Rs. 2,00,000/- |
| 2 | Fee of Rs. 2,00,000/- to be paid every 5 financial years after the financial year in which Certificate of Recognition is granted | On or before 30th April of the year it falls due |
| 3 | One time fee for making Application for Registration as IPE in Form AA | Rs. 2,00,000/- |
| Change in Director/ Partner of IPE (inform the board in Form F within 30 days) | Rs. 2,000 | |
| 4 | Fee @1% of the Professional Fee earned as insolvency professional entity in preceding FY along with statement in Form G. | On or before 30th April every year |
| 5 | Fee @1% of the Turnover from the services rendered by it in the preceding FY along with statement in Form G. | On or before 30th April every year |
* any delay in payment of fee shall attract simple interest @12% p.a on the amount of fee unpaid (Reg 15)
IV. Summary of Forms under IIIPICAI
|
Forms |
Description |
| Form AA | IPE Enrollment Form (will receive on your Registered mail id) |
| Form A | Certificate Of Professional Membership (Under bye-law 10 of the IIIPI’s Bye-laws) (not yet notified) |
| Form B | Certificate for Authorisation For Assignment (Under bye-law 12A of the IIIPI’s Bye-laws) (not yet notified) |
V. Summary of Forms mentioned in the Second Schedule for Insolvency Professional Entity (IBBI Forms):
|
Forms |
Description |
| Form AA | Application for Registration as an Insolvency Professional |
| Form B | Certificate of Registration issued by the Board |
| Form C | Application for Recognition as IPE |
| Form D | Certificate of Recognition issued by the Board |
| Form F | Information of cessation/joining of director/partner in an IPE (to be intimate within 30 days) |
| Form G | Annual Statement of Professional fee of Insolvency Professional Entity |
| Form H | Compliance Certificate (to be submitted to the Board by 15th October every year. |
In addition to the above an Insolvency Professional should adhere to the code of conduct mentioned in the first schedule of Regulation.
Nomenclature
|
Nomenclature |
Description |
| Board | Insolvency & Bankruptcy Board of India |
| IPA | Insolvency Professional Agency |
| IIIPICAI | Indian Institute of Insolvency Professionals of ICAI |
| Regulation | IBBI (Insolvency Professionals) Regulation, 2016 |
| AFA | Authorization for Assignment |
References
|
SR No. |
Particulars |
| 1 | IBBI (Insolvency Professionals) Regulation, 2016 |
| 2 | notification dated 28 September 2022 (IBBI/2022-23/GN/REG099) |
| 3 | Model Byelaws issued by IPA |
Disclaimer: The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author and the Author of this Article do not constitute any sort of professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. The readers are kindly requested to verify and confirm the updates from genuine sources before acting on any of the information’s provided hereinabove. The Author shall not be responsible for any loss or damage in any circumstances whatsoever.
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