Form ADT-1 for Appointment of First Auditor

The ADT-1 form holds significant importance for companies regarding appointing the first auditor. When a company is incorporated, it is required to establish its first auditor within 30 days of company incorporation. The ADT-1 form serves as a crucial document for officially notifying the Ministry of Corporate Affairs (MCA) regarding the appointment of the first auditor. This Form contains essential information such as the details of the auditor, the company's particulars, and the duration of the auditor's appointment. By submitting the ADT-1 form, companies fulfill their obligations under the Companies Act and ensure compliance with regulatory requirements. Companies must understand the process and conditions of filing the ADT-1 form to facilitate the first auditor's smooth and timely appointment.

Form ADT-1 - Appointment of First Auditor in a Company

The ADT-1 form informs the Registrar of Companies (ROC) about the appointment of the first auditor for a company. As per the Companies Act 2013, every company must appoint its first auditor within thirty days of its incorporation. Once the auditor is appointed, the company must file Form ADT-1 with the ROC within fifteen days of the appointment. The first auditor appointed by the company holds office until the conclusion of the first Annual General Meeting (AGM). The AGM must be held within nine months from the end of the financial year in which the company was incorporated. During the AGM, the shareholders can either ratify the appointment of the first auditor or appoint a new auditor for the company. Appointing an auditor for the first time may seem daunting for a new company. However, adhering to the provisions of the Companies Act is crucial to avoid any legal repercussions in the future. Complying with this requirement is mandatory for companies in India, and failure to file Form ADT-1 can lead to penalties and fines. IndiaFilings is here to assist you in filing Form ADT-1 and ensuring you comply with the legal obligations for appointing an auditor for your company. Our expert team can guide you through the process, making it hassle-free and ensuring that all the necessary documentation and filings are completed accurately and on time.

Law Governing the Form ADT-1

Form ADT-1 is a required submission made by companies to the Registrar of Companies (ROC) to inform them about the selection of an auditor following the conclusion of the Annual General Meeting (AGM) following Section 139 (1) of the Companies Act, 2013. Companies must submit this Form to the ROC annually as a formal notification of the appointment of the auditor subsequent to the AGM, wherein the new auditor is specified. Form ADT-1 includes pertinent information such as the appointed auditor's name, address, and qualifications. It is of utmost importance for companies to submit this Form within a 15-day timeframe from the AGM to ensure adherence to legal obligations and avoid potential penalties or fines.

Requirements for Filing Form ADT-1

To fulfill the requirements for filing Form ADT-1, all companies must submit this Form to the Registrar of Companies. This applies to companies of various types, including public, private, listed, and unlisted companies. The filing of Form ADT-1 must be done within the designated timeframe. However, certain conditions must be met to file Form ADT-1. Firstly, the company must have appointed an auditor following the regulations stated in the Companies Act of 2013. The appointed auditor must have given written consent to their appointment as the company's auditor. Moreover, the auditor should provide a certificate confirming that they are not disqualified or ineligible to serve as an auditor under Section 141 of the Companies Act, 2013.

Due Date File MCA Form ADT-1

For a newly incorporated company, filing Form ADT-1 within fifteen days of the company's initial board meeting is necessary. This meeting must take place within 30 days of the company's incorporation, and during this meeting, the board of directors appoints an auditor. In the case of an existing company, Form ADT-1 should be filed within 15 days following the conclusion of the Annual General Meeting (AGM) in which the appointment or reappointment of the auditor occurred. If the company's AGM took place on September 30, 2023, the deadline for filing Form ADT-1 would be October 14, 2023. Companies must adhere to the specified timeline for filing Form ADT-1 to avoid incurring penalties or fines. IndiaFilings can assist companies in ensuring compliance with all legal requirements and facilitating the timely filing of Form ADT-1. The following details need to be provided by the auditor in Form ADT-1:

Auditor's Category: Whether the auditor is a firm or an individual practitioner.
Chartered Accountancy Membership Number: The unique membership number assigned to the auditor.
Address and Email-id: The contact details of the auditor, including the address and email-id.
PAN Number: The Permanent Account Number of the auditor.
Appointment Period: The duration for which the appointment of the auditor is made.
Vacated Auditor's Membership Number: If applicable, the membership number of the auditor who vacated the position.
Date of Appointment: The date on which the new auditor was appointed, along with the date of the Annual General Meeting (AGM).
Casual Vacancy Details: If there is a casual vacancy, the date and reason for the vacancy should be mentioned.

The documents required for filing Form ADT-1 include the following:

Board Resolution Copy: A copy of the board resolution passed during the annual general meeting appointing the auditor.
Auditor's Consent: A written consent from the auditor confirming their acceptance of the appointment.
Certificate of Eligibility: A certificate issued by the auditor stating that they are not ineligible or disqualified to be appointed as an auditor under Section 141 of the Companies Act, 2013.
Intimation Copy: A copy of the intimation provided by the company to the auditor.

It is crucial to ensure that all the necessary documents are attached to Form ADT-1 to comply with legal requirements and avoid potential penalties or fines.

Penalty on Delayed Filing of Form ADT-1

The delayed filing of Form ADT-1 incurs penalties according to the following schedule:

Delay up to 30 days: The penalty levied is twice the standard fees.
Delay of more than 30 days and up to 60 days: The penalty levied is four times the normal fees.
Delay of more than 60 days and up to 90 days: The penalty levied is six times the standard fees.
Delay of more than 90 days and up to 180 days: The penalty levied is ten times the normal fees.
Delay of more than 180 days: The penalty levied is twelve times the normal fees.

Filing Form ADT-1 within the prescribed timeline is essential to avoid these penalties.

Important points to consider regarding Form ADT-1

Here are some essential points to consider regarding Form ADT-1:

Mandatory Filing: All types of companies, including listed, unlisted, public, private, or any other company, must file Form ADT-1 as per Section 139(1) of the Companies Act, 2013.
Company Responsibility: Filing Form ADT-1 lies with the company itself, not the auditor.
Casual Vacancy: Form ADT-1 must be filed in the case of the appointment of an auditor to fill a casual vacancy.
First Auditor Appointment: Although Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014 mentions explicitly Section 139(1) for the appointment of auditors and does not explicitly mention Section 139(6) for the appointment of the first auditor, companies should file Form ADT-1 even for the appointment of the first auditor.
Timely Filing and Documentation: It is crucial to file Form ADT-1 within the prescribed timeline and ensure all necessary documents are attached. This ensures compliance with legal requirements and helps avoid penalties or fines.

Remember to adhere to these points to fulfill the obligations associated with Form ADT-1 and maintain compliance with the Companies Act 2013.

Process for Filing Form ADT-1

Obtain a Digital Signature Certificate (DSC): A DSC is a digital equivalent of a physical signature used to authenticate electronic documents. At least one company director must obtain a valid DSC from a licensed Certifying Authority (CA).

Obtain Director Identification Number (DIN): Company directors must have a unique DIN issued by the MCA. If the signing director does not have a DIN, they must apply and obtain it before filing Form ADT-1.
Download Form ADT-1: Visit the MCA website and download Form ADT-1 in the prescribed format. The Form is available in a downloadable PDF format. We have reproduced the Form for ready reference:
Fill in the Form: Fill in the necessary details in Form ADT-1. This includes accurately providing the company's name, registered office address, and other required information.
Auditor Details: Enter the relevant details of the auditor appointed or reappointed, such as their name, address, PAN (Permanent Account Number), and membership number.
Attach Documents: Gather and attach the required supporting documents and Form ADT-1. These typically include the board resolution for the appointment of the auditor and the auditor's consent letter.
Verify the Form: Use the DSC of the director who is signing the Form to sign and verify the Form ADT-1 digitally. This step ensures the authenticity and integrity of the submitted Form.
Submit the Form: Log in to the MCA portal and submit Form ADT-1 electronically to the Registrar of Companies (ROC). Follow the instructions provided on the portal for the submission process.
Fee Payment: Pay the requisite filing fee for Form ADT-1 online through the MCA portal. The fee can be paid using various online payment methods available on the portal.
Acknowledgment: Upon successful submission of the Form and payment of the fee, an acknowledgment will be sent to the registered email address. This acknowledgment serves as proof of the form filing and should be retained for future reference.

File ADT-1 Form through IndiaFilings

IndiaFilings offers assistance with filing Form ADT-1, providing a streamlined and efficient process for companies. With their expertise and knowledge in corporate compliance, IndiaFilings ensures that all the necessary details are accurately filled in the Form, required documents are attached, and the Form is submitted within the prescribed timeline. Their team of professionals guides companies through the process, from obtaining the necessary digital signatures to verifying and submitting the Form electronically. By availing IndiaFilings' services, companies can have peace of mind knowing that their Form ADT-1 will be filed accurately and in compliance with the relevant regulations, allowing them to focus on their core business activities.