ADT-1 Filing

ADT-1 filing is a mandatory form used by companies to inform the Registrar of Companies about the appointment of an auditor. The filing of ADT-1 is crucial to ensure compliance with the legal requirements regarding the auditor’s appointment.

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Overview of ADT-1 Filing in India

Registering a company is not the end goal rather it is beginning of a journey that involves a lot of legal and regulatory compliance There are various compliances that companies have to follow post its registration. A company has to adhere to several filings mandated by the Ministry of Corporate Affairs (MCA) to ensure the smooth running of its operations and to stay compliant with the laws of the land. These filings include Income Tax Filings, GST filings, and the filings with the RoC. Their filings maintain the company's financial transparency and accountability and make sure that the company operates within the law. One of the most important filings, which are mandatory for all companies, is the ADT-1 form filing. Approximately 4,00,000+ companies file ADT-1 every year on the MCA portal. The ADT-1 form is used for the appointment, reappointment, and removal of auditors for a company. The appointment of the auditor is not only a statutory requirement but also the process of assuring its shareholders, investors, and other stakeholders that the financial record of the company is scrutinized independently. Without filing the ADT-1 form, the company cannot appoint or change auditors. Not filing the ADT-1 form can prevent the company from holding its Annual General Meeting (AGM). Therefore, while registering a company is an important first step, ongoing filing like the ADT-1 form is essential to keep the company compliant with statutory law.

What is ADT-1?

ADT-1 is a statutory document that must be filed with the Registrar of Companies (RoC) anytime an auditor is appointed, reappointed, or removed from their post. The Companies Act of 2013, which regulates Indian company law, includes this filing as part of its regulatory structure. Notifying the Registrar of Companies about the appointment, reappointment, or dismissal of auditors from a corporation is the goal of filing an ADT-1. At an Annual General Meeting (AGM) or other special Meeting, the form acts as an official record of the decision reached by the company's shareholders. After it is submitted, ADT-1 becomes a public record that any interested party can view via the MCA portal.

The ADT-1 filing falls under Section 139 of the Companies Act, 2013 and Rule 6 of the Companies (Audit and Auditors) Rules, 2014 mandates the filing of ADT-1 after appointing or removing an auditor.

The ADT-1 filing is required for:

However, Small Companies and One Person Companies (OPCs) are generally exempted from appointing an auditor, but if they do, they are still required to file ADT-1.

When is ADT-1 Filing Required?

The filing of ADT-1 is required in the following cases:

Appointment of a New Auditor: If a company is appointing a new auditor, it must file ADT-1 within 15 days of the appointment, following the AGM or a meeting where the decision is taken.
Reappointment of an Auditor: If an auditor is being reappointed at the AGM for the next term, ADT-1 needs to be filed within 15 days of the meeting where the decision is made.
Removal of Auditor: In case an auditor is removed before the expiry of their term (before the next AGM), the company must file ADT-1 within 30 days of the decision.
Rotation of Auditor: As per the regulations on auditor rotation, if a company is rotating its auditors, ADT-1 should be filed to ensure that the change is officially recorded.

Key Requirements for ADT-1 Filing

When you have to file ADT-1, you need to provide the following details at length:

Name of the Company: The registered name of the company has to be provided.
Date of AGM or Meeting: The date of the Annual General Meeting or the meeting where the decision of appointing, reappointing, or removing the auditor was made.
Details of the Auditor: The name, address, and membership number of the appointed or re-appointed auditor.
Type of Appointment: Whether the appointment is a new appointment, reappointment, or removal.
Board Resolution or Shareholder Resolution: A certified true copy of the board resolution or shareholder resolution passed for the appointment, reappointment, or removal of the auditor.
Consent of the Auditor: A letter of consent from the newly appointed auditor (in case of appointment or reappointment), indicating that they agree to take up the role.

Documents Required for ADT-1 Filing

For the successful filing of ADT-1, the following documents need to be attached:

Board/Shareholder Resolution: A certified true copy of the resolution passed for the appointment, reappointment, or removal of the auditor.
Consent Letter from the Auditor: A letter from the appointed or re-appointed auditor confirming their consent to act as the company’s auditor.
Certificate from the Company: A certificate stating that the auditor has not been disqualified and complies with the eligibility criteria under the Companies Act 2013.

Online Procedure to File ADT-1 Form

You need to follow the following steps to file an ADT-1 form:

Step 1 - Log in to the MCA Portal:

To begin, you will first need to access the MCA Portal. If you already have an account, simply log in with your username and password. If you don’t have an account, you’ll need to create one.

Step 2 - Navigate to the Filing Section:

After logging on MCA portal Under MCA Services, you will find a dropdown menu. From there, select ‘e-Forms’. This will take you to a page where you'll see a long list of forms. Find ADT-1, which is specifically for the appointment or removal of auditors, and click on it.

Step 3 - Fill in the Required Details:

Now, you are ready to fill out the ADT-1 form. You need to provide some important details about your company, such as its name, CIN (Corporate Identification Number), and registered office address. Additionally, you will need to include information about the auditor—whether it's their first time being appointed or if they are being reappointed, along with their membership number and professional address.

You also need to specify the date of the AGM or board meeting when the decision regarding the auditor was made. It's important to be as accurate as possible, so double-check your entries before moving on.

Step 4 - Attach Supporting Documents:

With the form filled out, the next step is to upload all necessary documents. Here’s what you’ll typically need:

A Board Resolution or Shareholder Resolution showing that the decision to appoint or remove the auditor was made in the meeting.
The Consent of the Auditor: A letter or document confirming that the auditor agrees to take up or continue the appointment.
Depending on the circumstances, you may need additional documents, such as the certificate of eligibility for reappointment or other compliance documents.

Step 5 - Pay the Filing Charge:

The next step is to pay the filing fee. The amount is dependent on your company's authorized capital. If your company has a capital of up to Rs. 1 crore, the fee is mostly around Rs. 300. For larger companies, the fee will be higher, and the MCA portal will calculate the exact amount for you. Once you’re ready, make the payment using available options like debit card, credit card, or net banking. After the payment is processed, you’ll receive a receipt confirming the transaction.

Step 6 - Submit the Form:

Before you submit, take one final look to ensure that all the information is correct and all documents are attached. This is your chance to catch any mistakes! Once everything looks good, hit the submit button. The form will then be sent to the MCA for processing. If there are any errors, the system will prompt you to fix them before submitting.

Step 7 - Acknowledge the Filing:

After successfully submitting the form, you will receive an acknowledgement receipt. This serves as proof that your filing has been successfully processed. It’s important to download and save this receipt for your records. It will contain an SRN (Service Request Number), which you can use to track the status of your filing if needed.

Deadline to File ADT-1

The deadline to file AD-1 is dependable upon the type of filing:

For Appointment or Reappointment of Auditor: The form should be filed within 15 days from the date of the AGM or the date of the decision taken by the company.
For Removal of Auditor: If an auditor is being removed before the expiration of their term, the filing must be done within 30 days from the date of the decision.

Penalties for Non-Compliance

The failure to file ADT-1 on time can lead to several penalties, including:

Late Filing Fee: If the ADT-1 form is filed after the due date, a late fee of 100 per day will be charged in addition to the normal filing fee. This fee continues to accumulate for each day the filing is delayed.
Penalty for Non-Filing: If the company fails to file the form even after the grace period, the penalties can be severe. The fine can go as high as 1,00,000. Additionally, the director(s) of the company may also be held personally liable for the non-compliance.
Consequences: When you make a continuous failure in filing ADT-1, the company may face additional fines, and in extreme cases, legal action could be taken against the company and its directors for continuous default.

Common Mistakes to Avoid During ADT-1 Filing

Incorrect Information: Ensure that all the details provided in the form, such as the name of the company, auditor details, and resolution number, are correct. Even small mistakes can result in rejections or penalties.
Incorrect Documents: You need to ensure that all the documents such as consent letter and resolutions are attached properly.
Paying accurate Fees: You have to ensure that you have to pay the correct fees, not filing the correct fee will prevent submission of the form.

Why choose Kanakkupillai?

We get it — handling the ADT-1 filing can be a bit of a headache. There are forms to fill out, deadlines to keep track of, and a lot of compliance rules to follow. But that’s exactly where Kanakkupillai comes in. Our professional team is here to make the whole process easy for you. We will guide you through every step from the start. We will break down the entire filing process for you. We will help you fill out the forms correctly, make sure you have all the right documents, and ensure that your filing gets done on time.

Our transparent pricing and no hidden fee will make you that you know exactly what you are paying for and our dedicated team of professionals keep track on latest development in law and shall keep you updated at every step.

We will take care of everything for you and You won’t have to worry about missing deadlines or getting hit with penalties.