Business Changes

Appointment of Auditors

Appoint your statutory auditor and file ADT-1 on time.

About Appointment of Auditors

Every company is required to appoint a statutory auditor to examine and report on its financial statements. The first auditor must be appointed by the board within 30 days of incorporation, and subsequent auditors are appointed by the shareholders at the Annual General Meeting, usually for a term of five years. The appointment is reported to the MCA by filing Form ADT-1. Choosing a qualified Chartered Accountant as auditor and filing ADT-1 within the prescribed time is a key compliance step — failure to appoint an auditor or file the form attracts penalties and flags the company as non-compliant.

Who needs this

All companies — at incorporation, at each AGM, and when filling a casual vacancy.

Documents required

The process — step by step

  1. Obtain the auditor's written consent and eligibility certificate
  2. Pass a board/general-meeting resolution
  3. Appoint the auditor for the applicable term
  4. File Form ADT-1 with the MCA within 15 days

Timeline & fees

Timelines and government fees are indicative and subject to processing by the relevant authority. Approval and its timing are decided by the authority and cannot be guaranteed.

Frequently asked questions

When must the first auditor be appointed?

Within 30 days of incorporation by the board of directors.

For how long is an auditor appointed?

Usually for a five-year term, ratified as required, and reported via ADT-1.

What if ADT-1 is not filed?

Late filing attracts additional MCA fees and marks the company as non-compliant.

Related services

Tax Guider — A unit of Corpzen Advisors Private Limited, Chennai, Tamil Nadu.

+91 86950 08695 · info@taxguider.in · Mon – Sat · 10:00 AM – 7:00 PM