Appointment of Auditor (ADT-1) Compliance
Ensure your company meets its statutory governance mandates, maintain seamless relationships with regulatory authorities, and avoid costly late-filing penalties with professional ADT-1 filing support managed by trusted Chartered Accountants.
What is Form ADT-1?
Under Section 139 of the Companies Act, 2013, every company is mandated to appoint an auditor (either an individual or a firm) to audit its financial statements. Following the appointment, the company must formally inform the Registrar of Companies (ROC) about this appointment by filing Form ADT-1.
This filing acts as a transparent declaration to the Ministry of Corporate Affairs (MCA), confirming that the auditor has been appointed in accordance with the law, has provided their written consent, and possesses the necessary eligibility and qualifications to carry out the audit.
When to File ADT-1
The timeline for filing ADT-1 is strict and unforgiving.
Key Disclosure Components
To ensure a seamless filing, our compliance desk systematically verifies the following requirements before submission:
| Requirement | Description |
|---|---|
| Auditor Consent | A written consent letter from the auditor/firm stating they are eligible and not disqualified under Section 141. |
| Board & AGM Resolution | Certified True Copy (CTC) of the Ordinary Resolution passed by shareholders at the AGM appointing the auditor. |
| Auditor Details | Membership Number, Firm Registration Number (FRN), PAN, and address of the auditor/firm. |
| Tenure | The term of office (typically 5 years for firms and 1 year for individuals, depending on company type). |
Step-by-Step Process of ADT-1 Filing
1. Eligibility Verification: We verify the auditor’s eligibility status, ensuring they are not disqualified by any statutory limits or provisions under the Companies Act.
2. Documentation Drafting: We assist in drafting the necessary Board and Shareholder resolutions and obtain the formal “Written Consent and Certificate” from the auditor.
3. Resolution Finalization: We ensure the AGM minutes capture the auditor’s appointment clearly, providing a sound basis for the ROC filing.
4. Electronic Submission: We manage the digital signing and electronic upload of Form ADT-1 on the MCA portal, ensuring the appointment is officially recorded.
5. Record Retention: We provide you with the stamped, acknowledgment-verified copy of the filing for your permanent corporate records.
CA’s Insights
“The ADT-1 filing is often treated as a minor administrative task, but it is actually a foundational compliance document. The ROC keeps a close watch on auditor appointment cycles. If you appoint an auditor but fail to file ADT-1, your subsequent filings (like AOC-4) might be rejected because the system does not recognize the auditor signing the financial statements. Furthermore, the 15-day window is very tight; missing it requires you to apply for condonation of delay, which is expensive and time-consuming. We always advise clients to have the auditor’s consent letter signed before the AGM to ensure that the ADT-1 is ready for filing the moment the resolution is passed.”
How can we support in Annual Compliance (ADT-1)?
Comprehensive Annual Compliance (ADT-1) handled by experienced Chartered Accountants.
CA-Led Compliance
Entire registration process is prepared and reviewed by qualified Chartered Accountants, ensuring professional-grade accuracy.
Accuracy Guarantee
Our multi-level verification process ensures error-free registration, protecting you from notices and penalties.
Timely Reminders
Proactive deadline tracking and reminders ensure you never miss a due date. On-time, every time.
Dedicated Support
A dedicated compliance manager for all your queries, notices, and year-round TDS support needs.
Get Transparent Pricing for Annual Compliance (ADT-1) Services
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Frequently Asked Questions
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Is ADT-1 required for every auditor appointment?
Yes, every time an auditor is appointed—whether it is the first auditor, a casual vacancy appointment, or a reappointment at the AGM—a formal ADT-1 must be filed to update the MCA database.
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What happens if we miss the 15-day deadline?
Missing the 15-day deadline constitutes a violation of Section 139. The company may be required to file a Condonation of Delay application with the Regional Director to regularize the appointment, which involves additional costs, documentation, and potentially penalties.
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Do we need to attach the Auditor’s certificate to the ADT-1?
Yes. The ADT-1 form is incomplete without the attached “Written Consent and Certificate” from the auditor, confirming that they meet the criteria specified under Section 141 of the Companies Act.
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Does this form apply to the appointment of the “First Auditor”?
The appointment of the first auditor is typically done by the Board of Directors within 30 days of incorporation. This generally does not require the filing of ADT-1 in the same manner as an auditor appointed by shareholders at an AGM (though specific local ROC practices may vary). We evaluate your specific case to ensure the correct forms are utilized.
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Can an auditor be appointed for more than 5 years?
According to the Companies Act, a firm of auditors can be appointed for two terms of five consecutive years (total 10 years) before a mandatory rotation cooling-off period kicks in. Individual auditors can be appointed for one term of five years. We ensure your ADT-1 reflects the correct tenure based on these statutory limits.
Still got some questions?
Speak with our ROC expert and get clarity on Annual Compliance (ADT-1).