{"id":6278,"date":"2018-01-16T10:00:57","date_gmt":"2018-01-16T04:30:57","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=6278"},"modified":"2025-06-19T17:33:09","modified_gmt":"2025-06-19T12:03:09","slug":"how-to-become-an-insolvency-professional","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/how-to-become-an-insolvency-professional\/","title":{"rendered":"Become an Insolvency Professional: Qualification &#038; Experience"},"content":{"rendered":"<p><strong>Introduction<\/strong><\/p>\n\n\n\n<p>In legal terms, Insolvency is a situation where the liabilities of a person or an organization exceed its assets. &nbsp;<strong><a href=\"https:\/\/enterslice.com\/learning\/cross-border-insolvency-bankruptcy\/\">Insolvency<\/a><\/strong> is when an individual or organization, can no longer meet its financial obligation with its creditors or lenders become due. The situation may arise due to poor management, an increase in cash expenses, or a decrease in cash flow. In short, we can say that when the value of total liabilities exceeds total assets. The companies, limited liability partnerships, partnership firms, and individuals all are governed by the Bankruptcy Code for resolution of insolvency. The Code contains adjudicators, regulators, Insolvency professionals, and information utilities.<\/p>\n\n\n\n<p>Because of the enforcement of the <a href=\"https:\/\/enterslice.com\/learning\/insolvency-and-bankruptcy-board-of-india\/\"><strong>Insolvency Bankruptcy Code 2016<\/strong><\/a>, the insolvency professionals are the backbone of the corporate, partnership firms, lips, and Individuals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reasons for Insolvency<\/h2>\n\n\n\n<ul>\n<li>Poor Management and Financial constraints are the main sources of Insolvency of business. Insolvency basically hits the small companies. Some of the reason for insolvency are:<\/li>\n\n\n\n<li><a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Market<\/a> &ndash; Company don&rsquo;t predict the changing market conditions<\/li>\n\n\n\n<li>Bad debts &ndash; Money not paid by the customer or advances are given to suppliers<\/li>\n\n\n\n<li>Management &ndash; Poor Management skills, adequate knowledge, imprudent <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Accounting&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Accounting is the language of business, serving as the backbone of financial management and decision-making. It involves the systematic recording, analysis, and reporting of financial(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/accounting\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>accounting<\/a> skills, lack of information.<\/li>\n\n\n\n<li>Finance &ndash; Lack of cash flow<\/li>\n\n\n\n<li>Other &ndash; excessive overheads.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Qualification and Experience required for Insolvency Professional<\/h2>\n\n\n\n<p>An individual shall be eligible for registration if he satisfies the following condition:<\/p>\n\n\n\n<ol>\n<li>Has successfully passed the National Insolvency Examination<\/li>\n\n\n\n<li>Has successfully passed Limited Liability Examination and has 15 years of experience in Management, after his\/her graduation from a recognized university<\/li>\n\n\n\n<li>Has successfully passed the Limited Insolvency Examination and has 10 years of experience in:\n<ol>\n<li>A Chartered Accountant enrolled as a member of ICAI<\/li>\n\n\n\n<li>A Company Secretary enrolled as a member of ICSI<\/li>\n\n\n\n<li>A Cost Accountant enrolled as a member of ICWAI<\/li>\n\n\n\n<li>An advocate enrolled in a Bar Council<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Individuals not entitled to be registered as Insolvency Professional:<\/h2>\n\n\n\n<ul>\n<li>The person who is a Minor<\/li>\n\n\n\n<li>The Insolvency professional must not be non-resident<\/li>\n\n\n\n<li>The person convicted by any competent authority for an offense punishable with imprisonment for a term exceeding 6 months or for an offense of moral turpitude and a period of five years has not been elapsed from the date of expiry of the sentence.<\/li>\n\n\n\n<li>The person who is convicted of any offense and sentenced to imprisonment for a period of 7 years or more.<\/li>\n\n\n\n<li>The person who doesn&rsquo;t have the required qualification and experience.<\/li>\n\n\n\n<li>The person with an unsound mind and not fit.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Registration Procedure<\/h2>\n\n\n\n<p>The persons who are eligible to register as Insolvency Professional have to make an application to the Board in FORM A of the second schedule. The fees of Rs. 10,000\/- has to be paid which is not refundable. Within a period of 7 days, the Board has to acknowledge the application. The Board may ask for additional documents for clarification. Once the Board is satisfied after inspection of documents may grant a certificate of Practice of Insolvency Professional in FORM B of the second schedule within 60 days of receipt of application.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Recognition of Insolvency Professional Entities<\/h2>\n\n\n\n<p>A Firm or a <a href=\"https:\/\/enterslice.com\/limited-liability-partnership\"><strong>Limited Liability Partnership<\/strong><\/a> or a Company may practice as an Insolvency Professional entity when the majority of partners of the firm or LLP or company are registered as Insolvency Professional or where the majority of the Directors of the company are registered as Insolvency Professional. The person who is eligible may make an application for recognition as an Insolvency Professional entity to the Board in FORM C.<\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/insolvency-and-bankruptcy-code\/\">Insolvency and Bankruptcy Code: Simplified Version<\/a><\/mark>.<\/p><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction In legal terms, Insolvency is a situation where the liabilities of a person or an organization exceed its assets. &nbsp;Insolvency is when an individual or organization, can no longer meet its financial obligation with its creditors or lenders become due. The situation may arise due to poor management, an increase in cash expenses, or [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":89121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1322],"tags":[1489,1490],"acf":{"service_id":"1"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Guide for Becoming an Insolvency Professional: Qualification &amp; Experience<\/title>\n<meta name=\"description\" content=\"The persons who are eligible to register as Insolvency Professional have to make an application to the Board in FORM A of the second schedule\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/how-to-become-an-insolvency-professional\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Guide for Becoming an Insolvency Professional: Qualification &amp; Experience\" \/>\n<meta property=\"og:description\" content=\"The persons who are eligible to register as Insolvency Professional have to make an application to the Board in FORM A of the second schedule\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/how-to-become-an-insolvency-professional\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2018-01-16T04:30:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-19T12:03:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/01\/Become-an-Insolvency-Professional-Qualification-Experience-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1218\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":651,"readingTime":2,"nextPost":{"id":6263,"slug":"permits-operating-worldwide-e-commerce-business-model"},"prevPost":{"id":6273,"slug":"alternative-investment-fund-regulations"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/01\/Become-an-Insolvency-Professional-Qualification-Experience-1.jpg","postTerms":"Company Registration","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/6278"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=6278"}],"version-history":[{"count":2,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/6278\/revisions"}],"predecessor-version":[{"id":89122,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/6278\/revisions\/89122"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/89121"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=6278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=6278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=6278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}