Section 206 of the Insolvency and Bankruptcy Code, 2016: Enrolled and Registered Persons to Act as Insolvency Professionals
Section 206 establishes the basic statutory eligibility requirement for rendering services as an insolvency professional under the Code. A person must satisfy both requirements stated in the section: enrolment as a member of an insolvency professional agency and registration with the Insolvency and Bankruptcy Board of India.
Section 206 - Statutory Provision
No person shall render his services as insolvency professional under this Code without being enrolled as a member of an insolvency professional agency and registered with the Board.
Meaning and Scope of Section 206
Section 206 is contained in Chapter IV of Part IV of the Insolvency and Bankruptcy Code, 2016, dealing with insolvency professionals. It creates a mandatory dual requirement before a person may render services as an insolvency professional under the Code.
1. Enrolment with an Insolvency Professional Agency
The person must first be enrolled as a member of an insolvency professional agency. Section 204 authorises an insolvency professional agency to grant membership to persons who fulfil the requirements contained in its bye-laws and pay the prescribed membership fee.
2. Registration with IBBI
Enrolment with an insolvency professional agency is not by itself sufficient. Section 206 also requires registration with the Board. Section 207 provides the statutory framework for registration of insolvency professionals after membership of an insolvency professional agency has been obtained.
Meaning of Insolvency Professional
Section 3(19) defines an "insolvency professional" as a person enrolled under Section 206 with an insolvency professional agency as its member and registered with the Board as an insolvency professional under Section 207.
Requirements Under Section 206 at a Glance
| Requirement | Legal Position |
|---|---|
| Enrolment | The person must be enrolled as a member of an insolvency professional agency. |
| Registration | The person must be registered with the Insolvency and Bankruptcy Board of India. |
| Effect | Both statutory conditions must be met before services are rendered as an insolvency professional under the Code. |
| Registration framework | Section 207 and the IBBI (Insolvency Professionals) Regulations, 2016 provide the relevant registration framework. |
IBBI Insolvency Professionals Regulations
The Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 prescribe the regulatory framework concerning eligibility, registration, recognition of insolvency professional entities, authorisation for assignment and professional requirements. IBBI's legal framework currently lists the consolidated Insolvency Professionals Regulations as amended up to 20 November 2025.
Authorisation for Assignment
In addition to the statutory enrolment and registration requirements stated in Section 206, the current regulatory framework includes requirements concerning an Authorisation for Assignment for accepting or undertaking assignments. The applicable IBBI regulations, guidelines and the validity of the authorisation should therefore be checked for a particular assignment.
Current IBBI Guidance for Appointments
IBBI issued the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2026 on 18 May 2026. These guidelines govern preparation of panels for specified appointments and include eligibility conditions applicable to insolvency professionals seeking inclusion in such panels.
Related IBC Provisions
Section 204: Functions of insolvency professional agencies, including granting membership and monitoring members.
Section 205: Requires insolvency professional agencies to make IBBI-approved bye-laws consistent with model bye-laws.
Section 207: Registration of insolvency professionals with the Board.
Section 208: Functions and obligations of insolvency professionals.
Section 220: Disciplinary action by the Board in accordance with the Code.
Official Legal Resources
India Code - Central Acts and Legislation
IBBI - Insolvency and Bankruptcy Code and Amendment Acts