ADT-1 Filing: A Complete Guide to Appointment of Auditors and Compliance

What is ADT-1 Filing?

ADT-1 Filing is a mandatory form under the Companies Act, 2013 that must be filed with the Registrar of Companies (ROC) to notify the appointment or reappointment of an auditor for a company. This form serves as an official record of the appointment of an auditor, and failure to file it can lead to penalties and legal complications for the company.

Once the board of directors approves the appointment of an auditor in the Annual General Meeting (AGM) or through a Board Resolution, the company is required to file Form ADT-1 with the ROC to formalize the appointment.

Why is ADT-1 Filing Important?

The ADT-1 filing ensures that:

1. Compliance with the Companies Act, 2013: The appointment of auditors is in line with legal requirements.
2. Legal Validity: The appointment is officially registered with the ROC, making it legally binding.
3. Transparency: It provides a record of the auditor appointed, ensuring transparency in corporate governance.
4. Avoiding Penalties: Failure to file Form ADT-1 within the prescribed time limit can lead to penalties, including a fine.

Who Needs to File ADT-1?

Form ADT-1 is filed by:

1. Private Companies: After appointing or reappointing an auditor during the AGM or Board meeting.
2. Public Companies: Similar to private companies, public companies must also file ADT-1 after appointing or reappointing an auditor.
3. Section 8 Companies (Non-Profit): Even non-profit companies need to file Form ADT-1 after appointing or reappointing their auditors.

Steps for ADT-1 Filing

1. Hold an AGM or Board Meeting

The first step is for the Board of Directors or shareholders to approve the appointment or reappointment of an auditor. A Board Resolution must be passed in the meeting, or the shareholders may approve the decision in the AGM.

2. Consent from the Auditor

Before filing ADT-1, the appointed auditor must give their written consent to act as the auditor for the company. This is typically in the form of Form ADT-3.

3. Prepare the Documents

Once the consent is obtained, the following documents are needed to file Form ADT-1:

• Board Resolution for appointment or reappointment of the auditor.
• Consent from the Auditor (Form ADT-3).
• AGM or EGM minutes (if required).

4. File ADT-1 with ROC

Form ADT-1 must be filed with the Registrar of Companies (ROC) within 15 days from the date of the AGM or the board meeting in which the appointment is made. The form can be filed online through the MCA portal.

• The Form ADT-1 requires details such as:
  • Name of the company and ROC code.
  • Name of the auditor appointed.
  • Period of appointment (for one year, or the term for reappointment).
  • Date of the AGM or Board meeting.

5. Acknowledge Confirmation

Once the ROC processes the form, the company will receive an acknowledgment of filing. The auditor is then officially recorded and appointed for the company.

Documents Required for ADT-1 Filing

1. Board Resolution – A copy of the resolution passed by the board for the appointment of the auditor.
2. Consent from Auditor – The auditor’s consent to be appointed, filed as Form ADT-3.
3. Minutes of AGM or Board Meeting – Proof of the meeting where the appointment was approved.
4. Form ADT-1 – The actual filing form to notify the ROC of the auditor’s appointment.