Appointment of First Auditor: What is Form ADT-1?

Appointment of First Auditor: What is Form ADT-1?. Appointing the 1st  auditor of a company is an important step after Company Registration, as per the Companies Act, 2013. Every company must appoint its first auditor within 30 days of incorporation. Once appointed, the company is required to file Form ADT-1 with the Registrar of Companies (ROC) within fifteen days of the appointment. This filing ensures that the auditor's details are registered and that the company is compliant with the law.
The first auditor’s tenure lasts until the conclusion of the first Annual General Meeting (AGM), which must be held within 9 months from the end of the fiscal year in which the company was incorporated. During the AGM, shareholders have the authority to either ratify the appointment of the first auditor or appoint a new auditor, as they see fit.
For newly incorporated companies, appointing an auditor and understanding the filing requirements can be daunting. However, it is essential to comply with the regulations to avoid any penalties or fines. Non-compliance with the provisions related to Form ADT-1 may lead to legal consequences, which can be costly and problematic for a company’s operations.
Compliance Calendar LLP can simplify this process for you. Our team can guide you through the appointment of the first auditor and ensure that Form ADT-1 is filed correctly and on time.
What is Form ADT-1?
Form ADT-1 serves as a formal intimation to the Registrar of Companies about the appointment of an auditor by a company. According to Section 139(1) of the Companies Act, 2013, every company must appoint an auditor and file this form after the Annual General Meeting (AGM) where the auditor was appointed or reappointed. Filing Form ADT-1 is a mandatory requirement for all companies, whether they are public or private, listed or unlisted, to maintain compliance with ROC regulations.
Appointment of First Auditor
Under the Companies Act, 2013, a newly incorporated company must appoint its first auditor within thirty days of its incorporation. The first auditor holds office until the conclusion of the first AGM. The AGM must occur within nine months from the close of the fiscal year in which the company was formed. During this AGM, shareholders may choose to ratify the appointment of the initial auditor or appoint a new one.
Filing Form ADT-1 for the First Auditor
Although Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014, highlights the Section 139(1) for auditor appointments, it is still recommended to file Form ADT-1 for the appointment of the first auditor. Filing this form provides an extra layer of compliance and avoids any potential legal complications.
Purpose and Importance of Filing Form ADT-1
Filing Form ADT-1 is more than just a formality. It serves as evidence that a company has appointed a qualified auditor in accordance with the Companies Act. This form helps the Ministry of Corporate Affairs (MCA) maintain an accurate record of the financial auditing activities of companies. Avoiding to file Form ADT-1 on time can lead to hefty fines and compliance issues that could impact the company’s operations.
Requirements for Filing Form ADT-1
The following conditions must be fulfilled to file Form ADT-1 with the Registrar of Companies: 
1. Appointment of Auditor: The company must have appointed an auditor according to the Companies Act, 2013.
2. Auditor's Consent: The appointed auditor must provide written consent, agreeing to serve as the company's auditor.
3. Certificate of Eligibility: The auditor must certify that they are not disqualified or ineligible under Section 141 of the Companies Act, 2013.
4. Board Resolution: The company should have passed a board resolution appointing the auditor. 
Details to be Included in Form ADT-1
While filing Form ADT-1, the following details of the appointed auditor must be submitted:

Category of Auditor: Whether the auditor is an individual or a firm.

Membership Details: Chartered Accountancy membership number of the auditor.

Contact Information: Address, email ID, and PAN of the auditor.

Appointment Period: Duration of the auditor's appointment.

Previous Auditor Details: Membership number of the vacated auditor, if any.

Appointment Date: Date of appointment and date of AGM.

Casual Vacancy: If applicable, the date and reason for any casual vacancy in the auditor's office.

Documents Required for Filing Form ADT-1
To ensure a smooth filing process, the following documents must be attached to Form ADT-1: 
1. Board Resolution Copy: A copy of the resolution passed at the AGM appointing the auditor.
2. Written Consent from Auditor: The auditor's written consent agreeing to their appointment.
3. Eligibility Certificate: A certificate from the auditor confirming that they are not disqualified under Section 141.
4. Intimation Copy: A copy of the company’s communication to the auditor, informing them of their appointment. 
Filing Timeline for Form ADT-1
For New Companies

Deadline: Form ADT-1 must be filed within 15 days from the date of the first board meeting. The board meeting itself must be held within thirty days of incorporation.

For Existing Companies

Annual Filing: For existing companies, Form ADT-1 should be filed within fifteen days following the AGM where the auditor was appointed or reappointed.

Example: If the AGM took place on September 30, 2023, Form ADT-1 must be filed by October 14, 2023.
Penalties for Late Filing of Form ADT-1
Companies must adhere to the prescribed timelines for filing Form ADT-1 to avoid penalties. The penalty structure for late filing is as follows:

Delay in Filing

Penalty

Up to 30 days

Twice the normal fees

30–60 days

Four times the normal fees

60–90 days

Six times the normal fees

90–180 days

Ten times the normal fees

More than 180 days

Twelve times the normal fees

Important Points to Remember About Form ADT-1

Applicability: Every company—whether public, private, listed, or unlisted—must file Form ADT-1 for auditor appointments.

Company Responsibility: The company, not the auditor, is responsible for filing Form ADT-1.

Casual Vacancy: Form ADT-1 must also be filed if the auditor is appointed to fill a casual vacancy.

First Auditor Exception: Even though Rule 4(2) doesn't explicitly require it for the first auditor, filing Form ADT-1 is a best practice.

How Can Compliance Calendar LLP Help You in Filing ADT-1 Form?
Filing Form ADT-1 can be a complex and time-consuming process, but Compliance Calendar LLP is here to help you. Our expert team offers end-to-end support to ensure that your company stays compliant with all legal requirements.
Our Services Include:
1. Documentation: We help you collect and prepare all the necessary documentation for Form ADT-1.
2. Document Review: Our professionals review your documents to ensure they are error-free and complete.
3. Filing: We take care of the entire filing process, ensuring a hassle-free experience.
4. Compliance: We ensure that your company meets all compliance norms related to the auditor's appointment.
5. Regular Updates: Stay informed about any changes or updates in regulations that may affect your filing obligations.

Appointing the 1^st auditor of a company is an important step after Company Registration, as per the Companies Act, 2013. Every company must appoint its first auditor within 30 days of incorporation. Once appointed, the company is required to file Form ADT-1 with the Registrar of Companies (ROC) within fifteen days of the appointment. This filing ensures that the auditor's details are registered and that the company is compliant with the law.

The first auditor’s tenure lasts until the conclusion of the first Annual General Meeting (AGM), which must be held within 9 months from the end of the fiscal year in which the company was incorporated. During the AGM, shareholders have the authority to either ratify the appointment of the first auditor or appoint a new auditor, as they see fit.

For newly incorporated companies, appointing an auditor and understanding the filing requirements can be daunting. However, it is essential to comply with the regulations to avoid any penalties or fines. Non-compliance with the provisions related to Form ADT-1 may lead to legal consequences, which can be costly and problematic for a company’s operations.

Compliance Calendar LLP can simplify this process for you. Our team can guide you through the appointment of the first auditor and ensure that Form ADT-1 is filed correctly and on time.

What is Form ADT-1?

Form ADT-1 serves as a formal intimation to the Registrar of Companies about the appointment of an auditor by a company. According to Section 139(1) of the Companies Act, 2013, every company must appoint an auditor and file this form after the Annual General Meeting (AGM) where the auditor was appointed or reappointed. Filing Form ADT-1 is a mandatory requirement for all companies, whether they are public or private, listed or unlisted, to maintain compliance with ROC regulations.

Appointment of First Auditor

Under the Companies Act, 2013, a newly incorporated company must appoint its first auditor within thirty days of its incorporation. The first auditor holds office until the conclusion of the first AGM. The AGM must occur within nine months from the close of the fiscal year in which the company was formed. During this AGM, shareholders may choose to ratify the appointment of the initial auditor or appoint a new one.

Filing Form ADT-1 for the First Auditor

Although Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014, highlights the Section 139(1) for auditor appointments, it is still recommended to file Form ADT-1 for the appointment of the first auditor. Filing this form provides an extra layer of compliance and avoids any potential legal complications.

Purpose and Importance of Filing Form ADT-1

Filing Form ADT-1 is more than just a formality. It serves as evidence that a company has appointed a qualified auditor in accordance with the Companies Act. This form helps the Ministry of Corporate Affairs (MCA) maintain an accurate record of the financial auditing activities of companies. Avoiding to file Form ADT-1 on time can lead to hefty fines and compliance issues that could impact the company’s operations.

Requirements for Filing Form ADT-1

The following conditions must be fulfilled to file Form ADT-1 with the Registrar of Companies:

1. Appointment of Auditor: The company must have appointed an auditor according to the Companies Act, 2013.

2. Auditor's Consent: The appointed auditor must provide written consent, agreeing to serve as the company's auditor.

3. Certificate of Eligibility: The auditor must certify that they are not disqualified or ineligible under Section 141 of the Companies Act, 2013.

4. Board Resolution: The company should have passed a board resolution appointing the auditor.

Details to be Included in Form ADT-1

While filing Form ADT-1, the following details of the appointed auditor must be submitted:

Category of Auditor: Whether the auditor is an individual or a firm.
Membership Details: Chartered Accountancy membership number of the auditor.
Contact Information: Address, email ID, and PAN of the auditor.
Appointment Period: Duration of the auditor's appointment.
Previous Auditor Details: Membership number of the vacated auditor, if any.
Appointment Date: Date of appointment and date of AGM.
Casual Vacancy: If applicable, the date and reason for any casual vacancy in the auditor's office.

Documents Required for Filing Form ADT-1

To ensure a smooth filing process, the following documents must be attached to Form ADT-1:

1. Board Resolution Copy: A copy of the resolution passed at the AGM appointing the auditor.

2. Written Consent from Auditor: The auditor's written consent agreeing to their appointment.

3. Eligibility Certificate: A certificate from the auditor confirming that they are not disqualified under Section 141.

4. Intimation Copy: A copy of the company’s communication to the auditor, informing them of their appointment.

Filing Timeline for Form ADT-1

For New Companies

Deadline: Form ADT-1 must be filed within 15 days from the date of the first board meeting. The board meeting itself must be held within thirty days of incorporation.

For Existing Companies

Annual Filing: For existing companies, Form ADT-1 should be filed within fifteen days following the AGM where the auditor was appointed or reappointed.

Example: If the AGM took place on September 30, 2023, Form ADT-1 must be filed by October 14, 2023.

Penalties for Late Filing of Form ADT-1

Companies must adhere to the prescribed timelines for filing Form ADT-1 to avoid penalties. The penalty structure for late filing is as follows:

Delay in Filing	Penalty
Up to 30 days	Twice the normal fees
30–60 days	Four times the normal fees
60–90 days	Six times the normal fees
90–180 days	Ten times the normal fees
More than 180 days	Twelve times the normal fees

Important Points to Remember About Form ADT-1

Applicability: Every company—whether public, private, listed, or unlisted—must file Form ADT-1 for auditor appointments.
Company Responsibility: The company, not the auditor, is responsible for filing Form ADT-1.
Casual Vacancy: Form ADT-1 must also be filed if the auditor is appointed to fill a casual vacancy.
First Auditor Exception: Even though Rule 4(2) doesn't explicitly require it for the first auditor, filing Form ADT-1 is a best practice.

How Can Compliance Calendar LLP Help You in Filing ADT-1 Form?

Filing Form ADT-1 can be a complex and time-consuming process, but Compliance Calendar LLP is here to help you. Our expert team offers end-to-end support to ensure that your company stays compliant with all legal requirements.

Our Services Include:

1. Documentation: We help you collect and prepare all the necessary documentation for Form ADT-1.

2. Document Review: Our professionals review your documents to ensure they are error-free and complete.

3. Filing: We take care of the entire filing process, ensuring a hassle-free experience.

4. Compliance: We ensure that your company meets all compliance norms related to the auditor's appointment.

5. Regular Updates: Stay informed about any changes or updates in regulations that may affect your filing obligations.