ADT -1

Who Needs This Service

Every company needs ADT-1: newly incorporated companies when they appoint the first auditor, existing companies when they appoint or re-appoint an auditor at the AGM, and companies that change auditors for any reason, including resignation or removal.

Startups often overlook it because the first auditor is appointed by the Board soon after incorporation and the filing seems like a formality. Missing it can create default entries in the MCA record and late fees.

If you are unsure whether ADT-1 is needed for the first auditor, consult the current rules or ask us. Companies should also remember to ensure that the auditor meets the eligibility conditions and gives written consent before the appointment, since an invalid appointment can cause audit and filing problems later.

Companies that rotate auditors should track the five-year term and the rules on rotation, where applicable.

Key Benefits

• Timely intimation to the ROC within 15 days
• Complete documentation: consent, eligibility certificate and resolutions
• Compliance with the 30-day first-auditor rule after incorporation
• Avoids late filing fees and MCA default records
• Supports a smooth audit and annual filing cycle

Next Steps & Related Services

After ADT-1, the auditor begins the audit cycle, and the company proceeds to the AGM and annual filings.

Related services: Post Compliance, INC-20A, Annual Compliance and ROC Compliance.

Common Mistakes

• Appointing an auditor without obtaining written consent and the Section 141 eligibility certificate.
• Missing the 30-day Board appointment window for the first auditor.
• Forgetting to file a fresh ADT-1 after the AGM re-appointment.
• Assuming the first-auditor ADT-1 is optional without checking the latest rules.
• Choosing a disqualified auditor.

Timeline, Costs & Practical Tips

ADT-1 must be filed within 15 days of the appointment, and the first auditor should be appointed within 30 days of incorporation. Costs are the filing fee plus professional charges; late filing attracts additional fees.

Practical tip: get the auditor's consent and eligibility certificate before the Board meeting, and calendar the 15-day deadline.

Additional Information

Section 139 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 regulate the appointment of auditors, and Section 141 sets eligibility and disqualifications. An independent audit is a core investor-protection mechanism, so the Registrar must be told promptly who the auditor is. The five-year term and rotation rules are designed to maintain independence. ADT-1 creates the public record of the appointment, and delays can indicate poor governance.

Practical Scenarios

Scenario 1:

A new private company appoints its first auditor by Board resolution within 30 days and files ADT-1 within 15 days.

Scenario 2:

At the AGM, shareholders re-appoint the existing auditor for the next term and the company files a fresh ADT-1.

Scenario 3:

A company changes auditors after a resignation and must record the new appointment with the Registrar.