What is insolvency case management in India?

It is a consulting service that helps creditors (banks, suppliers, investors) recover their money when a company goes bankrupt. A consultant guides them through NCLT (National Company Law Tribunal) procedures, helps file claims, and negotiates recovery plans. In 2025, over 50,000 cases are pending in NCLTs across India, with creditors losing ₹1,000+ crore annually due to lack of proper guidance.

How much does it cost to start this service in India?

₹25–40 lakh. This includes: office rent & setup (₹8 lakh), hiring 1–2 experienced consultants for 3 months (₹20 lakh), legal registration & insurance (₹4 lakh), and initial marketing (₹5 lakh). You can start from home to reduce costs to ₹12–15 lakh.

Is this service profitable in India?

Yes. Each case generates ₹2–5 lakh in advisory fees, plus 2–5% commission on recovered amount (typically ₹1–10 crore). A firm handling 50 cases/year at 60% recovery rate earns ₹1.5–3 crore revenue with 40–50% profit margin (₹60 lakh–1.5 crore net profit).

What regulations apply to this service in India?

Register as LLP under Companies Act 2013. If hiring advocates, comply with Bar Council of India Act 1961. Charge GST at 18% under GST Act 2017. Follow Insolvency and Bankruptcy Code 2016 (IBC) Sections 4–35 for creditor rights. Professional liability insurance is mandatory.

Insolvency Case Advisory Service India 2026 — Guide

AI SummaryInsolvency case management is a high-growth consulting niche in India where creditors (small suppliers, business owners, investors) need expert help recovering dues from bankrupt companies. The addressable market is ₹8,000–12,000 crore annually, with 50,000+ pending NCLT cases and 85% of small creditors underserved. Timing is right in 2026 because IBC (Insolvency and Bankruptcy Code) is now 8 years old and established; creditors are increasingly seeking professional guidance. This opportunity suits retired judges, senior lawyers, or experienced finance professionals who can build a ₹1.5–3 crore revenue firm within 3 years.