Section 3(1) in Insolvency and Bankruptcy Board of India (Insolvency Professional Agencies) Regulations, 2016
(1)No person shall be eligible for registration as an insolvency professional agency unless it is a company registered under section 8 of the Companies Act, 2013, and -(a)its sole object is to carry on the functions of an insolvency professional agency under the Code;(b)it has bye-laws and governance structure in accordance with the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016;(c)it has a minimum net worth of ten crore rupees;(d)it has a paid-up share capital of five crore rupees;(e)it is not under the control of any person resident outside India;(f)not more than forty-nine per cent. of its share capital is held, directly or indirectly, by persons resident outside India;(g)it is not a subsidiary of a body corporate through more than one layer; and(h)the applicant, its promoters, its directors and its shareholders are fit and proper persons.Explanation 1. - For the purposes of clause (g), layer in relation to a body corporate means its subsidiary.Explanation 2. - For determining whether a person is fit and proper under clause (h), the Board may take into account any consideration as it deems fit, including but not limited to the following criteria, namely: -(i)integrity, reputation and character,(ii)absence of conviction and restraint orders,(iii)competence including financial solvency and net worth.
