Form ADT-1 plays a vital role in the appointment of the first auditor of a company. After incorporation, every company is required to appoint its first auditor within 30 days. Form ADT-1 is used to officially inform the Ministry of Corporate Affairs (MCA) about this appointment. The Form captures key details such as the auditor’s particulars, company information, and the tenure of appointment. Filing Form ADT-1 helps companies comply with the provisions of the Companies Act and meet statutory requirements. Understanding the filing procedure and conditions is essential to ensure a smooth and timely appointment of the first auditor.

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

Form ADT-1 is filed with the Registrar of Companies (ROC) to notify the appointment of the first auditor. Under the Companies Act, 2013, every company must appoint its first auditor within 30 days from the date of incorporation. Once appointed, Form ADT-1 must be filed with the ROC within 15 days of the appointment. The first auditor holds office until the conclusion of the company’s first Annual General Meeting (AGM). The AGM must be conducted within nine months from the end of the financial year in which the company was incorporated. At the AGM, shareholders may confirm the existing auditor or appoint a new one. Although the process may appear complex for newly incorporated companies, compliance with the Companies Act is mandatory to avoid future legal issues. Non-filing of Form ADT-1 can attract penalties and fines. Professional assistance can help ensure accurate and timely filing in line with statutory requirements.

Law Governing Form ADT-1

Form ADT-1 is filed in accordance with Section 139(1) of the Companies Act, 2013. It is submitted to the ROC to notify the appointment of an auditor after the conclusion of the AGM. Companies are required to file this Form each year following the AGM in which the auditor is appointed or reappointed. The Form includes important details such as the auditor’s name, address, and professional qualifications. Filing Form ADT-1 within 15 days from the AGM is mandatory to ensure compliance and avoid penalties.

Requirements for Filing Form ADT-1

All companies, including private, public, listed, and unlisted entities, are required to file Form ADT-1 with the ROC. The filing must be completed within the prescribed time limit. Before filing, the company must ensure that the auditor has been appointed in accordance with the Companies Act, 2013. The auditor must provide written consent to act as the company’s auditor and submit a certificate confirming that they are not disqualified under Section 141 of the Companies Act, 2013.

Due Date to File MCA Form ADT-1

For newly incorporated companies, Form ADT-1 must be filed within 15 days of the first board meeting, which is required to be held within 30 days of incorporation. During this meeting, the board appoints the first auditor. For existing companies, Form ADT-1 must be filed within 15 days from the conclusion of the AGM in which the auditor is appointed or reappointed. For example, if the AGM is held on 30 September 2023, the due date for filing Form ADT-1 would be 14 October 2023. Adhering to these timelines is essential to avoid penalties.

Details Required in Form ADT-1

• Auditor Category: Whether the auditor is an individual or a firm
• Membership Number: Chartered Accountant membership number
• Address and Email ID: Contact details of the auditor
• PAN: Permanent Account Number of the auditor
• Appointment Period: Tenure of the auditor’s appointment
• Previous Auditor’s Membership Number: If applicable
• Date of Appointment: Along with the AGM date
• Casual Vacancy Details: Date and reason, if applicable

Documents Required for Filing Form ADT-1

• Board Resolution: Copy of the resolution approving the auditor’s appointment
• Auditor’s Consent: Written acceptance of the appointment
• Eligibility Certificate: Confirmation that the auditor is not disqualified under Section 141
• Intimation Copy: Proof of intimation sent by the company to the auditor

Ensuring that all required details and documents are correctly attached to Form ADT-1 is essential for statutory compliance and to avoid penalties or fines.

Penalty for Late Filing of Form ADT-1

Delayed submission of Form ADT-1 attracts additional fees based on the period of delay, as outlined below:

• Up to 30 days: Fee charged is twice the normal filing fee.
• More than 30 days and up to 60 days: Fee charged is four times the standard fee.
• More than 60 days and up to 90 days: Fee charged is six times the normal fee.
• More than 90 days and up to 180 days: Fee charged is ten times the prescribed fee.
• Beyond 180 days: Fee charged is twelve times the normal filing fee.

Timely filing of Form ADT-1 is necessary to prevent these additional charges.

Key Points to Note About Form ADT-1

The following important aspects should be kept in mind while dealing with Form ADT-1:

• Compulsory Compliance: Filing Form ADT-1 is mandatory for all companies, whether listed or unlisted, public or private, in accordance with Section 139(1) of the Companies Act, 2013.
• Company’s Obligation: The responsibility for filing Form ADT-1 rests with the company and not with the auditor.
• Casual Vacancy: In cases where an auditor is appointed due to a casual vacancy, filing Form ADT-1 is required.
• First Auditor: Although Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014 specifically refers to Section 139(1) and does not clearly mention Section 139(6) relating to the first auditor, companies are advised to file Form ADT-1 even for the appointment of the first auditor.
• Timelines and Attachments: Filing the Form within the stipulated period along with complete documentation is essential to meet legal requirements and avoid penalties.

Adhering to these points helps companies remain compliant with the provisions of the Companies Act, 2013.

Procedure for Filing Form ADT-1

• Obtain Digital Signature Certificate (DSC): At least one director must hold a valid DSC, which is required to digitally sign the Form.
• Director Identification Number (DIN): The director signing the Form must possess a valid DIN issued by the MCA. If not available, it must be obtained prior to filing.
• Download Form ADT-1: Access the MCA portal and download Form ADT-1 in the prescribed PDF format.
• Complete the Form: Enter all required details carefully, including the company’s name, registered office address, and other relevant information.
• Provide Auditor Information: Fill in the auditor’s details such as name, address, PAN, and membership number.
• Attach Supporting Documents: Upload the necessary documents, including the board resolution approving the auditor’s appointment and the auditor’s consent letter.
• Digital Verification: Use the director’s DSC to digitally sign and verify Form ADT-1.
• Submit the Form: Log in to the MCA portal and submit the completed Form to the Registrar of Companies.
• Pay Filing Fees: Make the required payment online using the available payment options on the MCA portal.
• Acknowledgment Receipt: After successful submission and payment, an acknowledgment will be sent to the registered email address. This should be preserved for records.

Filing Form ADT-1 with Professional Assistance

Professional service providers assist companies in filing Form ADT-1 by ensuring accuracy, proper documentation, and timely submission. Their support covers the entire process, from obtaining digital signatures to final electronic filing. With expert guidance, companies can ensure compliance with statutory requirements while focusing on their core business operations.

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