Section 207 of the IBC: Registration of Insolvency Professionals

Section 207 of the Insolvency and Bankruptcy Code, 2016 (IBC) establishes the framework for registration of insolvency professionals with the Insolvency and Bankruptcy Board of India (IBBI). Membership of an insolvency professional agency and registration with the Board are distinct requirements.

Text of Section 207: Registration of insolvency professionals

207. (1) Every insolvency professional shall, after obtaining the membership of any insolvency professional agency, register himself with the Board within such time, in such manner and on payment of such fee, as may be specified by regulations.

(2) The Board may specify the categories of professionals or persons possessing such qualifications and experience in the field of finance, law, management, insolvency or such other field, as it deems fit.

Meaning and scope of Section 207

The provision creates a regulated entry system for individuals seeking to act as insolvency professionals. An insolvency professional is a person enrolled with an insolvency professional agency as its member and registered with the Board as an insolvency professional under section 3(19) of the IBC. An insolvency professional agency (IPA) is a person registered with the Board under section 201 as an insolvency professional agency, as defined in section 3(20). The Board refers to the Insolvency and Bankruptcy Board of India established under section 188.

Section 206 separately prohibits a person from rendering services as an insolvency professional under the Code without both IPA enrolment and registration with the Board. Registration should not be confused with an authorisation for assignment, which may also be required under applicable IBBI regulations and IPA bye-laws before accepting or undertaking an assignment.

Section 207(1): Membership and registration

Sub-section (1) sets out the sequence: obtain membership of an IPA, then apply for registration with IBBI. The detailed application process, eligibility criteria, fees and continuing requirements are governed by the IBBI (Insolvency Professionals) Regulations, 2016, as amended from time to time. Applicants should consult the current consolidated regulations and prescribed forms rather than rely on an older fee or form description.

1. Confirm eligibility: Check the qualifications, experience, examination and other conditions prescribed by the current regulations for the relevant registration route.
2. Obtain IPA membership: Apply to a recognised insolvency professional agency and satisfy its membership conditions.
3. Apply to IBBI: Submit the prescribed application, supporting documents and applicable fee in the manner required by current regulations.
4. Maintain compliance: Once registered, comply with the Code, IBBI regulations, IPA bye-laws and any applicable authorisation-for-assignment conditions.

Registration is a regulatory status, not an automatic entitlement to appointment in every insolvency proceeding. Appointment and eligibility for a particular assignment are subject to the Code, relevant regulations and case-specific requirements.

Section 207(2): Qualifications and professional categories

Sub-section (2) empowers IBBI to specify categories of professionals or persons with qualifications and experience in finance, law, management, insolvency or another suitable field. The section does not itself prescribe one universal degree, examination score, number of years of experience or application fee. Those details must be checked against the current IBBI (Insolvency Professionals) Regulations, 2016 and applicable notifications.

IPA membership, IBBI registration and authorisation for assignment

Related provisions of the IBC

• Section 3(19): Defines an insolvency professional.
• Section 3(20): Defines an insolvency professional agency.
• Section 196: Powers and functions of IBBI.
• Section 204: Functions of insolvency professional agencies, including membership, conduct standards and monitoring.
• Section 205: Requirement for IPAs to make bye-laws consistent with the IBBI model bye-laws, subject to approval.
• Section 206: Restriction on rendering insolvency professional services without enrolment and registration.
• Section 208: Functions and obligations of insolvency professionals.

Frequently asked questions

Is IPA membership alone sufficient to practise as an insolvency professional?

No. Section 206 requires both enrolment with an IPA and registration with IBBI for rendering services as an insolvency professional under the IBC.

Does Section 207 specify a fixed registration fee?

No. Section 207(1) leaves the fee, timing and application procedure to regulations. Check the current IBBI regulations for applicable amounts and procedures.

Can a lawyer or finance professional register as an insolvency professional?

Section 207(2) permits IBBI to specify eligible categories and qualifications, including relevant experience in law and finance. A professional qualification alone does not guarantee registration; all applicable eligibility and procedural conditions must be satisfied.

Is registration the same as authorisation for assignment?

No. Registration with IBBI and any required authorisation for assignment are separate compliance matters.

Official legal resources

For the latest statutory text, amendments, regulations, circulars and notices, refer to the India Code portal, the Insolvency and Bankruptcy Board of India and its legal framework directory. The operative requirements depend on the version of the regulations applicable at the relevant time.

Browse the Insolvency and Bankruptcy Code, 2016 - section-wise guide.

This article provides general legal information and should be read with the current statutory text and regulations. It is not a substitute for advice on a specific registration or assignment.