Form ADT-1 Filing – Due Date, Fees and Penalty

Last Updated on August 24, 2024 by Sachin Jaiswal

Form ADT-1 is clearly a must for businesses in the convoluted landscape of corporate compliance in India. This document acts as official notice to the ROC of the financial year auditor appointments. Timeliness of filing assures not only compliance with the Companies Act 2013 but also helps companies remain free from legal problems and penalties; hence it is difficult to overestimate its relevance. The subtleties of the Form will be covered in this blog including its due date, filing expenses, late or non-filing penalties.

What is Form ADT-1?

Under Section 139(1) of the Companies Act, 2013 Form ADT-1, formally known as the “Notice of Appointment of Auditor by the Company,” is a legislative obligation. This form is essential for all businesses—including private, public, and OPCs—when nominating auditors to the ROC.

Form ADT-1 mainly guarantees responsibility and openness in company financial reporting. The Act seeks to maintain the integrity of financial accounts by requiring the appointment of auditors and safeguarding the interests of shareholders and the general population.

Essential Information Needed in Form ADT-1

Companies completing Form ADT-1 have to give certain information, including:

• Name and Address of the Auditor: The designated auditor’s information has to be precisely entered.
• Membership Number: The auditor’s professional membership number should be included.
• Date of appointment: It is advisable to include the date the auditor was appointed at the AGM.
• Respect and eligibility: A statement attesting to the auditor’s eligibility for appointment and consent are provided.

When to File Form ADT-1?

Compliance requires a knowledge of the Form ADT-1 filing timeline. The company’s Annual General Meeting (AGM) directly determines the required date for submitting this document.

Filing Timeline

• Post-AGM Filing: Companies must post Form ADT-1 within 15 days after the end of their AGM. This is the most common situation for businesses that have been running for more than one financial year.
• Newly Incorporated Companies: The due date for Form ADT-1 for newly established firms is fifteen days after the date of the first AGM. This guarantees that even startups follow the need to immediately assign an auditor.

Importance of Complying with the 15-Day Deadline

Several reasons depend on filing Form ADT-1 within the required 15-day period:

• Timely filing guarantees that the business follows the terms of the Companies Act 2013.
• Companies that need to submit on time run the risk of paying financial penalties, which would become more expensive depending on further delays.
• Timely compliance helps the organisation keep its good reputation with regulatory authorities, which is crucial for the following corporate activities.

Filing Fees for Form ADT-1

Form ADT-1’s filing fees are set according to the firm’s share capital. Knowledge of the charge structure is crucial for budget planning and compliance.

Fee Structure

Form ADT-1 filing costs include as follows:

Additional Considerations

• Companies should keep current with any modifications in the fee structure that the Ministry of Corporate Affairs (MCA) releases.
• If the form is submitted after the due date, we will address extra late costs in the next section.

Consequences of Late Filing or Non-Filing of Form ADT-1

Ignoring to submit Form ADT-1 within the required timeframe might have significant effects on businesses. Knowing the repercussions is crucial for ensuring compliance.

Penalties for Late Entry

Late submission of Form ADT-1 carries fines arranged according to the number of days of delay. The punishment system follows this:

Legal Ramifications

Apart from fines, non-compliance with the Form ADT-1 submission could cause several legal issues:

• The ROC could start prosecution actions against the corporation and its officials for non-compliance with legislative norms.
• Companies that often miss deadlines might draw more attention from regulatory authorities, which would cause more issues.

Hazards of Non-Compliance

• Non-compliance could damage a company’s image, therefore influencing bonds with creditors, investors, and stakeholders.
• Companies may have operating difficulties if non-compliance results in their inability to get required licenses or finance.

Guidelines for Filing Form ADT-1

Companies should follow various recommended practices to guarantee seamless submission and adherence to Form ADT-1. These procedures may simplify the filing process and help reduce hazards.

• Appoint Auditors in Advance: Companies should seek to designate auditors well ahead of the AGM. This proactive strategy guarantees filing compliance and gives enough time for paperwork.
• Keep Accurate Records: Crucially, accurate and current records of auditor appointments—including the date of appointment and pertinent AGM minutes—should be kept. This habit not only helps with timely filing but also acts as a reference for subsequent compliance.
• Consult Professional Help: Companies that want help or are confused about the filing procedure may want to speak with qualified service providers, such as company secretaries or chartered accountants. These experts can give insightful direction and guarantee the proper and timely completion of the submission.
• Frequent Compliance Reviews: Creating a compliance calendar will let businesses monitor crucial deadlines—including Form ADT-1 filing—by tracking them. Frequent compliance audits help avoid mistakes and last-minute frenzy.
• Train Company Officials: Teaching influential business leaders the value of Form ADT-1 and the consequences of non-compliance may help to build a compliant culture within the firm. Awareness may result in proactive actions meant to guarantee timely submission.

Conclusion

Form ADT-1 is not just a legal need but also a fundamental part of financial openness and corporate governance in India. Timely submission of this document is crucial for maintaining compliance with the Companies Act of 2013 and helping prevent legal issues and fines. Understanding the due date, filing costs, and repercussions of non-compliance helps businesses be proactive in guaranteeing correct and timely Form ADT-1 submission. It is impossible to overestimate the value of following this criterion, as it shows a business’s dedication to openness and responsibility.

Compliance with Form ADT-1 ultimately reflects a company’s commitment to sound business practices. Companies may confidently navigate the complexity of regulatory compliance by giving timely filing priority and consulting professionals when required. See a professional service provider or contact the relevant authorities if you have any issues or need help submitting Form ADT-1 to make sure your business stays compliant and in good standing.

Related Service

• Annual Compliance Filing for Private Limited Company
• Annual Compliance Filing for Limited Liability Partnership