Doc Summary
Overview
Auditor Appointment is a mandatory compliance under the Companies Act, 2013, which requires every registered Company to appoint a statutory auditor to audit its financial statements. The auditor ensures that the Company’s accounts are accurate, lawful, and in compliance with accounting standards.
This appointment must be made within a specified timeline after incorporation and renewed periodically as per the law.
Eligibility / Who Should Comply
- All Private Limited, Public Limited, One Person Companies, and Section 8 Companies
- Companies incorporated under the Companies Act, 2013 or earlier Acts
- LLPs are not required to appoint statutory auditors but may appoint internal auditors voluntarily
Step-by-Step Process
- First Auditor Appointment:
- Within 30 days of incorporation, the Board of Directors appoints the first auditor through a board resolution.
- If not appointed within the period, shareholders must appoint the auditor within 90 days in an Extraordinary General Meeting (EGM).
- Subsequent Auditor Appointment:
- Appointed at the Company’s first Annual General Meeting (AGM) for a term of five years.
- Filing with ROC:
- File Form ADT-1 with the Ministry of Corporate Affairs (MCA) within 15 days of appointment.
- Consent and Certificate:
- Obtain a written consent and eligibility certificate from the appointed auditor.
Documents Required
- Board Resolution or AGM Resolution for appointment
- Written consent and eligibility certificate from the auditor
- Company’s PAN, CIN, and incorporation documents
- Copy of the auditor’s registration details
- Form ADT-1 for MCA filing
Timeline
- First auditor: Within 30 days from incorporation
- Subsequent auditor: Within 15 days of AGM
Failure to file within these deadlines may attract penalties and additional fees.
Post-Appointment Requirements
- Maintain records of appointment and auditor communication
- File ADT-1 acknowledgment and keep it with Company records
- Ensure auditor’s independence and eligibility as per the Companies Act
- Notify the auditor of any change in financial year or reporting structure
Penalties for Non-Compliance
- Non-filing of Form ADT-1 may attract a penalty of ₹10,000 to ₹1,00,000
- Continued failure can result in daily penalties up to ₹1,000 per day
- Financial statements filed without an appointed auditor are considered invalid
Kanoons Service
Kanoons Law & Tax Consultants Pvt. Ltd. provides comprehensive Auditor Appointment assistance, ensuring timely and compliant filings with the Registrar of Companies.
Our services include:
- Preparation of board and shareholder resolutions for appointment
- Collection of consent and eligibility certificates from the auditor
- Preparation and filing of Form ADT-1 on the MCA portal
- Guidance for first-time and renewal appointments
- Support for replacement or resignation of auditors
Kanoons ensures every appointment or change of auditor is handled efficiently, meeting all legal and procedural requirements.
Why Choose Kanoons
- Fast and compliant filing process through the MCA portal
- Accurate document preparation and submission
- Transparent pricing and deadline tracking
- Reliable corporate compliance support for all Company types
- Trusted by businesses for annual and statutory compliance management
