# ADT-1 Auditor Appointment

> The board appoints a company's first auditor within 30 days of incorporation; at the first AGM shareholders appoint an auditor for a five-year term, and the company files Form ADT-1 with the ROC within 15 days of that meeting. If an auditor resigns, the auditor files ADT-3 and the company fills the casual vacancy.

Practice: Company Secretary & Corporate Compliance — https://www.industax.com/services/company-secretary/

Every company, however small, must have its accounts audited by a chartered accountant, so auditor appointment is one of the first compliances after incorporation. Many companies also file ADT-1 for the first auditor for completeness.

Auditor rotation rules apply to listed and certain larger companies; most private companies can reappoint the same auditor. We draft the board and AGM resolutions, obtain the auditor's consent and eligibility certificate and file ADT-1.

## Key facts

| Item | Detail |
| --- | --- |
| First auditor | Appointed by the board within 30 days of incorporation (Section 139(6)) |
| Regular term | Five years, appointed at the AGM (Section 139(1)) |
| Filing | ADT-1 within 15 days of the AGM |
| Resignation | Auditor files ADT-3 |

## Who needs this

- Newly incorporated companies
- Companies at the end of an auditor's term
- Companies replacing a resigning auditor

## What's included

- Consent and eligibility certificate
- Resolutions
- ADT-1 filing

## Documents

- Auditor's consent and eligibility letter
- Board / AGM resolution
- Previous auditor's resignation and ADT-3 (when changing auditors)

## Process

1. **Consent** — Auditor's consent and certificate obtained.
2. **Resolution** — Board or AGM resolution passed.
3. **File** — ADT-1 filed within 15 days.

## FAQs

### When must the first auditor be appointed?

Within 30 days of incorporation by the board; if the board fails, members appoint within 90 days.

### What is the time limit for ADT-1?

15 days from the general meeting at which the auditor is appointed.

### Is audit required for a company with no turnover?

Yes. Every company must have its financial statements audited regardless of turnover.

## Official sources

- Ministry of Corporate Affairs — MCA21 portal: https://www.mca.gov.in/
- Companies Act, 2013 (India Code): https://www.indiacode.nic.in/handle/123456789/2114

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