Appointment of Auditor for a Company: ADT-1 Filing
Appoint your first or subsequent statutory auditor correctly, with consent, eligibility certificate and Form ADT-1 handled end to end.
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Appointment of auditor is the formal process by which a company engages a Chartered Accountant or audit firm as its statutory auditor under Section 139 of the Companies Act, 2013. Every company needs one, whether it is a new private company, a growing startup or an established firm. The first auditor is appointed by the Board within 30 days of incorporation, and later appointments are made by the members at a general meeting for a fixed term. Our team prepares the resolutions, collects the auditor consent and eligibility certificate, and files Form ADT-1 with the Registrar so your statutory records are complete.
Who provides this service: our team of Company Secretaries and compliance specialists.
Who Needs Appointment of Auditor?
- Newly incorporated private limited companies that must appoint a first auditor
- Companies reaching their annual general meeting where the existing auditor term is ending
- Companies filling a gap after an auditor resigned or became ineligible
- Startups moving from informal accounting to a regular statutory audit
- Subsidiaries of foreign or Indian groups that need a compliant appointment record
Key Benefits
- Board and shareholder resolutions are drafted for the correct situation, whether first appointment or subsequent term.
- The first-auditor timeline after incorporation is tracked so the Board does not miss its window.
- Auditor consent and the eligibility certificate are collected in the form the Companies Act expects.
- Form ADT-1 is prepared and filed with the Registrar, with attachments checked before submission.
- Eligibility questions under Section 141 are raised early, before the appointment is made and the auditor starts work.
- Minutes, notices and statutory registers are updated, so the appointment can be shown clearly during any inspection.
How It Works
Identify the type of appointment
We determine whether you need a first auditor by the Board, an appointment at the annual general meeting, or a casual vacancy replacement, because each follows a different route under Section 139.
Check eligibility of the auditor
We confirm the proposed auditor is eligible and not disqualified under Section 141, and review any relationship, shareholding or engagement that could conflict with independence before consent is sought.
Obtain consent and certificate
The auditor gives written consent along with a certificate that the appointment will satisfy the conditions of the Act. We prepare the request letter and collect these before the resolution is passed.
Pass Board or shareholder resolution
We draft the notice, agenda and resolution for the Board meeting or general meeting, fix the term and remuneration approach, and prepare minutes that record the decision properly.
File Form ADT-1 with the Registrar
We prepare Form ADT-1 on the MCA portal, attach the auditor consent, certificate and resolution copy, obtain the required digital signatures and file it within the time the rules allow.
Intimation and record updating
The appointment is communicated to the auditor, the minutes book and registers are updated, and we note the term end so the next appointment or reappointment is not forgotten.
Documents Required
- Certificate of incorporation of the company
- Memorandum and Articles of Association
- Board resolution or notice of general meeting and resolution of members
- Written consent of the proposed auditor
- Certificate from the auditor on eligibility under Section 141
- Auditor details such as firm name, registration number and address
- Digital signature certificate of a director for filing
- Last audited financial statements, for subsequent appointments
Timeline and Fees
Indicative timeline: Documentation usually takes a few working days once the auditor is identified. Filing follows the resolution, and processing time depends on the authority.
Professional fee: Our fee depends on whether it is a first appointment or a subsequent one, the number of resolutions and meetings involved, and whether the audit engagement itself is also required. The auditor fee is separate and agreed directly.
What Can Go Wrong if This Is Missed or Done Incorrectly
- Failing to appoint an auditor on time can leave the company without a valid audit, delaying financial statements and annual filings.
- A late or missing Form ADT-1 may attract additional fees and penalties on the company and its officers in default.
- Appointing an ineligible auditor can make the audit report open to challenge by regulators, lenders or investors.
- Missing consent or certificate records weaken the paper trail if the Registrar later asks for proof of the appointment.
Frequently Asked Questions
Who appoints the first auditor of a new company?
The Board of Directors appoints the first auditor within 30 days of the date of registration of the company. If the Board does not do so, the members must be informed and may appoint the auditor at an extraordinary general meeting, within the extended period provided in Section 139 of the Companies Act.
How long does an auditor hold office after appointment?
The first auditor holds office until the conclusion of the first annual general meeting. Auditors appointed at an AGM afterwards are generally appointed for a term running to the conclusion of a later AGM as set by the Act, so the appointment does not need yearly renewal. Confirm the exact term for your type of company.
What is Form ADT-1 and who files it?
Form ADT-1 is the notice to the Registrar of Companies informing it that an auditor has been appointed. The company files it on the MCA portal with supporting attachments such as the auditor consent and the resolution. Filing is the company's responsibility, though professionals normally prepare and submit it.
Can any Chartered Accountant be appointed as auditor?
Only a Chartered Accountant or firm holding a valid certificate of practice who is not disqualified under Section 141 may be appointed. Disqualifications relate to matters like certain relationships with the company, business dealings and limits on the number of audits. The auditor certifies eligibility in writing before appointment.
What happens if a company forgets to appoint an auditor?
A company without a valid auditor cannot complete its statutory audit, which delays financial statements, annual filings and often bank or tax work. The Act provides remedies, but the company and its officers may face consequences for default. It is better to fix the gap early with the Board and members.
Is a separate appointment needed for a tax audit?
A tax audit under the Income-tax Act is a different assignment from the statutory audit under the Companies Act, even if the same professional performs both. The engagement, report and forms differ. Our team can explain which audits apply to your company and who must sign each report.
Official Sources
Rules, forms and fees change. Check the current position on the official portal:
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Last reviewed: . Laws, fees and procedures change; check the official portal before you act.
Disclaimer: The information on this page is for general informational purposes only and does not constitute professional legal, tax or compliance advice. Requirements vary by situation. Please consult a qualified CA or CS for advice specific to your needs. Government fees and timelines are subject to change; verify with the relevant authority before proceeding.