Form ADT-1 is an important statutory form under the Companies Act, 2013 used to notify the Registrar of Companies (ROC) about the appointment of an auditor. Filing this form ensures that the company remains compliant with legal and regulatory requirements related to audit appointments.
When a company is incorporated, it must appoint its first auditor within 30 days of incorporation. Although the law specifically mandates filing Form ADT-1 after the appointment of an auditor at the Annual General Meeting (AGM), many companies also file the form for the appointment of the first auditor as a best compliance practice.
Understanding the process, requirements, due dates, and penalties associated with Form ADT-1 is essential to ensure smooth and timely compliance.
Law Governing Form ADT-1
Form ADT-1 is governed by the following provisions:
- Section 139(1) of the Companies Act, 2013 – Appointment of auditor at the Annual General Meeting
- Section 139(6) – Appointment of the first auditor
- Rule 4 of the Companies (Audit and Auditors) Rules, 2014 – Filing of notice of appointment of auditor
Under these provisions, companies must file Form ADT-1 with the Registrar of Companies (ROC) to formally notify the appointment or reappointment of an auditor.
The form includes essential information such as:
- Name of the auditor
- Address and contact details
- Membership number
- Appointment period
- Company details
Filing this form within the prescribed timeline helps companies avoid penalties and maintain statutory compliance.
Is Filing Form ADT-1 Mandatory for the First Auditor?
This is a commonly asked compliance question.
Legally:
- Filing Form ADT-1 is mandatory for the appointment of an auditor after the first Annual General Meeting (AGM).
- Filing Form ADT-1 for the first auditor is not explicitly mandatory under Section 139(6).
However (Best Practice):
Most professionals recommend filing Form ADT-1 even for the first auditor to:
- Maintain proper compliance records
- Avoid disputes with regulators or banks
- Ensure transparency in statutory filings
Due Date for Filing Form ADT-1
For Newly Incorporated Company (First Auditor)
- The first auditor must be appointed within 30 days of incorporation
- Form ADT-1 should ideally be filed within 15 days of the auditor’s appointment (recommended compliance practice)
For Existing Company (Subsequent Auditor)
Form ADT-1 must be filed:
Within 15 days from the conclusion of the Annual General Meeting (AGM) in which the auditor is appointed or reappointed.
Example:
If the AGM is held on 30 September, the due date for filing Form ADT-1 will be:
15 October
Timely filing is important to avoid additional fees and penalties.
Details Required in Form ADT-1
The following information must be provided while filing Form ADT-1:
- Auditor’s category (Individual or Firm)
- Chartered Accountant membership number
- Permanent Account Number (PAN)
- Address and email ID of the auditor
- Appointment period
- Date of appointment
- Details of previous auditor (if applicable)
- Reason for casual vacancy (if any)
Providing accurate details ensures smooth processing of the form by the Registrar of Companies.
Documents Required for Filing Form ADT-1
Companies must attach the following documents while filing Form ADT-1:
- Board Resolution copy for appointment of auditor
- Auditor’s written consent letter
- Certificate of eligibility under Section 141 of the Companies Act, 2013
- Intimation letter sent to the auditor
Attaching complete and accurate documentation helps prevent rejection of the form and ensures compliance with statutory requirements.
Process for Filing Form ADT-1
The following steps outline the standard procedure for filing Form ADT-1 with the Ministry of Corporate Affairs (MCA).
Step 1: Obtain Digital Signature Certificate (DSC)
At least one director of the company must have a valid Digital Signature Certificate (DSC) to sign and submit the form electronically.
Step 2: Ensure Director Identification Number (DIN)
The director signing the form must possess a valid Director Identification Number (DIN) issued by the MCA.
Step 3: Download Form ADT-1
Visit the official MCA portal and download the prescribed Form ADT-1 in electronic format.
Step 4: Fill in Company Details
Enter the required information, including:
- Company name
- Corporate Identification Number (CIN)
- Registered office address
- Date of auditor appointment
Step 5: Enter Auditor Details
Provide the relevant details of the appointed auditor, such as:
- Name of auditor or audit firm
- PAN and membership number
- Address and contact details
Step 6: Attach Supporting Documents
Upload all required documents, including:
- Board resolution
- Auditor consent letter
- Eligibility certificate
Step 7: Verify and Digitally Sign the Form
The director must digitally sign the form using their DSC.
Step 8: Submit the Form on MCA Portal
Log in to the MCA portal and submit Form ADT-1 electronically to the Registrar of Companies.
Step 9: Pay Filing Fees
Pay the applicable filing fee online through the MCA portal.
Step 10: Receive Acknowledgment
After successful submission, an acknowledgment will be sent to the registered email address. This serves as proof of filing and should be retained for future reference.
Penalty for Delayed Filing of Form ADT-1
Delayed filing of Form ADT-1 results in additional fees based on the length of delay.
| Delay Period | Additional Fees |
| Up to 30 days | 2 times the normal fee |
| More than 30 days and up to 60 days | 4 times the normal fee |
| More than 60 days and up to 90 days | 6 times the normal fee |
| More than 90 days and up to 180 days | 10 times the normal fee |
| More than 180 days | 12 times the normal fee |
Filing the form within the prescribed timeline helps avoid these penalties and ensures regulatory compliance.
Important Points to Remember About Form ADT-1
- Filing Form ADT-1 is mandatory for appointment or reappointment of auditors after the AGM
- Filing Form ADT-1 for the first auditor is recommended as a best compliance practice
- The responsibility for filing the form lies with the company, not the auditor
- Form ADT-1 must also be filed in case of appointment of an auditor due to a casual vacancy
- Proper documentation and timely filing are essential to avoid penalties
Conclusion
Form ADT-1 plays a critical role in maintaining statutory compliance related to auditor appointments under the Companies Act, 2013. While filing the form is mandatory after the Annual General Meeting, many companies also file it for the first auditor as a precautionary compliance measure.
Ensuring accurate documentation, timely filing, and adherence to legal requirements helps companies avoid penalties and maintain transparency in financial reporting. Proper compliance with Form ADT-1 requirements is essential for smooth corporate governance and regulatory compliance.
Disclaimer: The content on this website is for informational purposes only and does not constitute legal, financial, or professional advice. Please consult qualified experts before acting on any information. Jatin Sethi & Co accepts no liability for errors, omissions, or outcomes from the use of this content. This site is not an advertisement or solicitation.
FAQs
1. What is Form ADT-1?
Form ADT-1 is a form filed with the Ministry of Corporate Affairs (MCA) to inform the Registrar of Companies about the appointment of an auditor in a company.
2. Is Form ADT-1 required for the appointment of the first auditor?
No, filing Form ADT-1 is not mandatory for the first auditor appointed by the Board of Directors within 30 days of incorporation.
However, many companies still file it as a good compliance practice.
3. When should the first auditor be appointed?
The first auditor must be appointed by the Board of Directors within 30 days from the date of incorporation of the company.
4. What if the Board fails to appoint the first auditor?
If the Board does not appoint the first auditor within 30 days, the company must appoint one within 90 days in an Extraordinary General Meeting (EGM).
5. When is Form ADT-1 mandatory?
Form ADT-1 becomes mandatory in the following cases:
- Appointment of auditor in the Annual General Meeting (AGM)
- Appointment of auditor to fill a casual vacancy
6. What is the due date for filing Form ADT-1?
Form ADT-1 must be filed within 15 days from the date of appointment of the auditor (except for first auditor where it is optional).
7. What details are required in Form ADT-1?
The form requires:
- Company details (CIN, name, address)
- Auditor’s name and address
- Membership number and firm registration number
- Date of appointment
- Period of appointment
8. What documents are required to file Form ADT-1?
- Consent letter from the auditor
- Certificate from auditor confirming eligibility under the Companies Act
- Copy of Board Resolution or Shareholders’ Resolution
9. What is the penalty for not filing Form ADT-1?
Failure to file Form ADT-1 can result in:
- Additional filing fees
- Penalties on the company and officers in default
- Non-compliance under the Companies Act
10. Can Form ADT-1 be filed after the due date?
Yes, but it will attract additional fees depending on the delay period.
11. Who appoints the first auditor of a company?
The Board of Directors appoints the first auditor within 30 days of incorporation.
12. Who appoints subsequent auditors?
Subsequent auditors are appointed by shareholders in the AGM.
13. What is the tenure of the first auditor?
The first auditor holds office until the conclusion of the first Annual General Meeting (AGM).
14. Is auditor consent mandatory before appointment?
Yes. Written consent and eligibility certificate from the auditor are required before appointment.
15. Can the first auditor be reappointed?
Yes, the first auditor can be reappointed as a regular auditor in the AGM, subject to compliance with applicable provisions.
16. Is ADT-1 required for OPC (One Person Company)?
Yes, ADT-1 is required for auditor appointments in OPCs (except optional filing for first auditor).
17. What is a casual vacancy in auditor appointment?
A casual vacancy arises when an auditor resigns, dies, or becomes disqualified before completing their term. A new auditor must be appointed and ADT-1 must be filed.
18. Can a company appoint more than one auditor?
Yes, companies can appoint joint auditors if required.
19. What is the role of the Registrar of Companies (ROC) in ADT-1?
The ROC records the appointment of the auditor and ensures compliance with the Companies Act.
20. Why is filing ADT-1 important?
Filing ADT-1 ensures:
- Legal compliance
- Proper record with MCA
- Transparency in auditor appointment
- Avoidance of penalties
Written by
Asha Ahuja Sethi (Head Admin at Jatin Sethi & Co., Chartered Accountants)
Shilpa Khata ( Works at Jatin Sethi & Co., Chartered Accountants)
Tagged with:
About the Author
cajatinsethi
Professional Chartered Accountant with expertise in taxation, financial planning, and business advisory services. Committed to helping businesses and individuals achieve their financial goals through personalized solutions and expert guidance.
