Professionals Law ensures your auditor appointment is MCA-compliant, penalty-free and on time.
Introduction and Its Compliance
The Appointment of Auditor is a mandatory compliance requirement under Section 139(1) of the Companies Act, 2013, read with Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014. Every company shall appoint their first auditor within 30 days of the date of incorporation and the auditors other than first auditor shall be appointed at every Annual General Meeting (AGM) who shall hold office from the conclusion of that AGM till the conclusion of the sixth AGM and thereafter till the conclusion of every sixth meeting. The Form ADT-1 has to be filed with the ROC within 15 days of the appointment. Professionals Law helps its clients in preparing resolutions, consent letters and submission of ADT-1 on time to be compliant with all applicable laws on audit and save themselves from penalties.
Why It Is Needed
Filing Form ADT-1 is necessary for legal reporting of the auditor's appointment by the company to the government. It not only fulfills a statutory requirement but also documents transparency in the financial reporting process. Failing to file ADT-1 may attract late filing penalties and reflect poor corporate governance. Professionals Law ensures that all formalities from board resolution to MCA filing are completed accurately and promptly. This enables companies to comply with audit requirements under the law and maintain credibility with regulators, stakeholders and investors.
Benefits and Advantages
Legal Compliance
Timely filing of ADT-1 ensures that your company adheres to MCA norms and avoids penalties or legal scrutiny for non-compliance.
Financial Transparency
Appointment of a statutory auditor enhances the company’s credibility and builds trust among shareholders, banks and regulatory authorities.
Smooth ROC Filings
With Professionals Law, you get complete support in ROC-related filings, ensuring accurate documentation and timely submissions.
Support for Future Fundraising
Properly appointed and recorded auditors help when raising funds or applying for loans, as audited reports are a must.
Hassle-Free Renewal or Change
ADT-1 facilitates future change or reappointment of auditors by establishing proper records from the start.
Eligibility Criteria
- All companies incorporated under the Companies Act, 2013.
- The auditor must be a Chartered Accountant (CA) or a firm of CAs registered with ICAI.
- The auditor should not be disqualified under Section 141 of the Companies Act, 2013.
- Appointment must be approved by shareholders at the first AGM or within 30 days by the Board for the first auditor.
Book a Free Consultation with Professionals Law
Documents Required
Steps for Applying
Collect Auditor's Consent & Eligibility Letter
Auditor provides consent to be appointed and confirms they are not disqualified.
Pass Board Resolution
The Board of Directors passes a resolution for appointment in the board meeting.
Shareholder Approval (if applicable)
In case of reappointment or regular appointment, approval is taken in the AGM or EGM.
Prepare Form ADT-1
Professionals Law prepares the ADT-1 form with all necessary attachments and declarations.
Filing with MCA
Form ADT-1 is submitted to the MCA within 15 days from the AGM or board resolution.
Acknowledgement
Obtain the MCA acknowledgement as proof of successful filing.
Frequently Asked Questions
Is ADT-1 mandatory for the first auditor?
When should ADT-1 be filed?
Is it applicable to LLPs or OPCs?
Who can be appointed as a statutory auditor?
Can the same auditor be reappointed after 5 years?
What happens if ADT-1 is not filed on time?
Can Professionals Law assist in auditor reappointment filings too?
Is the digital signature required for filing ADT-1?
How much does Professionals Law charge for ADT-1 filing?
Instant Expert Connect
Free Consultation
Get direct advice from our senior CAs & Lawyers within 24 hours.
