Section 201 of the Insolvency and Bankruptcy Code, 2016: Registration of Insolvency Professional Agency
Section 201 governs applications for registration of insolvency professional agencies, grant and renewal of certificates, rejection of applications, and suspension or cancellation of registration by the Insolvency and Bankruptcy Board of India.
Section 201 - Statutory Provision
(1) Every application for registration shall be made to the Board in such form and manner, containing such particulars, and accompanied by such fee, as may be specified by regulations:
Provided that every application received by the Board shall be acknowledged within seven days of its receipt.
(2) On receipt of the application under sub-section (1), the Board may, on being satisfied that the application conforms with all requirements specified under sub-section (1), grant a certificate of registration to the applicant or else, reject, by order, such application:
Provided that no order rejecting the application shall be made without giving an opportunity of being heard to the applicant:
Provided further that every order so made shall be communicated to the applicant within a period of fifteen days.
(3) The Board may issue a certificate of registration to the applicant in such form and manner and subject to such terms and conditions as may be specified.
(4) The Board may renew the certificate of registration from time to time in such manner and on payment of such fee as may be specified.
(5) The Board may, by order, suspend or cancel the certificate of registration granted to an insolvency professional agency on any of the following grounds, namely:-
(a) that it has obtained registration by making a false statement or misrepresentation or by any other unlawful means;
(b) that it has failed to comply with the requirements of the regulations made by the Board or bye-laws made by the insolvency professional agency;
(c) that it has contravened any of the provisions of the Act or the rules or the regulations made thereunder;
(d) on any other ground as may be specified by regulations:
Provided that no order shall be made under this sub-section unless the insolvency professional agency concerned has been given a reasonable opportunity of being heard:
Provided further that no such order shall be passed by any member except whole-time members of the Board.
Meaning and Scope of Section 201
Section 201 creates the statutory registration framework for insolvency professional agencies. It should be read with Section 199, which requires a valid certificate of registration, and Section 200, which specifies the principles that the Board must have regard to while registering such agencies.
Application for Registration
An application must be made to the Board in the form and manner, with the particulars and fee, specified by regulations. The Code also requires the Board to acknowledge every application within seven days of receipt.
Grant or Rejection of Registration
If the Board is satisfied that the application conforms to the applicable requirements, it may grant a certificate of registration. If the application is to be rejected, the applicant must first receive an opportunity of being heard. The order made on the application must be communicated to the applicant within fifteen days.
Terms, Conditions and Renewal
The Board may issue the certificate in the prescribed form and manner and subject to specified terms and conditions. Section 201(4) separately authorises renewal from time to time in the specified manner and on payment of the specified fee.
Suspension or Cancellation Under Section 201(5)
| Ground | Statutory Basis |
|---|---|
| False statement, misrepresentation or unlawful means | Registration was obtained through any of these means. |
| Non-compliance | Failure to comply with Board regulations or the agency's bye-laws. |
| Contravention | Contravention of the Code or rules or regulations made under it. |
| Other specified ground | Any other ground that may be specified by regulations. |
Opportunity of Being Heard
Before an order suspending or cancelling the certificate is made under Section 201(5), the concerned insolvency professional agency must be given a reasonable opportunity of being heard. The provision further requires such an order to be passed only by a whole-time member of the Board.
Meaning of Insolvency Professional Agency
Section 3(20) defines an "insolvency professional agency" as any person registered with the Board under Section 201 as an insolvency professional agency. Registration under Section 201 is therefore central to the statutory identity and regulatory status of an insolvency professional agency.
Applicable IBBI Regulations
The Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016 provide the regulatory framework for registration of insolvency professional agencies. They define a certificate of registration as a certificate granted or renewed by the Board under those Regulations and contain the applicable registration framework.
The IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 separately regulate matters relating to model bye-laws and governing boards. IBBI published amendments to those regulations in May 2026.
Related IBC Provisions
Section 199: No person to function as an insolvency professional agency without a valid certificate of registration.
Section 200: Principles governing registration of an insolvency professional agency.
Section 202: Appeal to the National Company Law Appellate Tribunal from specified orders of the Board.
Section 203: Governing Board of an insolvency professional agency.
Section 204: Functions of insolvency professional agencies.
Section 205: Bye-laws of insolvency professional agencies.
Official Legal Resources
India Code - Insolvency and Bankruptcy Code, 2016
IBBI - Insolvency and Bankruptcy Code and Amendment Acts