Section 12 in Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016
12. Recognition of Insolvency Professional Entities.
- [(1) A company, a registered partnership firm or a limited liability partnership may be recognised as an insolvency professional entity, if -(a)its sole objective is to provide support services to insolvency professionals, who are its partners or directors, as the case may be;(b)it has a net worth of not less than one crore rupees;(c)majority of its shares is held by insolvency professionals, who are its directors, in case it is a company;(d)majority of capital contribution is made by insolvency professionals, who are its partners, in case it is a limited liability partnership firm or a registered partnership firm;(e)majority of its partners or directors, as the case may be, are insolvency professionals;(f)majority of its whole time directors are insolvency professionals, in case it is a company; and(g)none of its partners or directors is a partner or a director of another insolvency professional entity:Provided that the insolvency professional entities recognised as on the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018 shall comply with the provisions of clauses (a), (b) (c) and (d) on or before 30th September, 2018 and the provisions of clauses (e), (f) and (g) on or before 30th June, 2018.] [Substituted by Notification No. IBBI/2017-18/GN/REG027, dated 27.3.2018 (w.e.f. 23.11.2016).](2)[ A person eligible under sub-regulation (1) may make an application for recognition as an insolvency professional entity to the Board in Form C of the Second Schedule along with an application fee of fifty thousand rupees.] [Substituted by Notification No. IBBI/2018-19/GN/REG036, dated 11.10.2018 (w.e.f. 23.11.2016).]
