What is Form ADT-1?
Form ADT-1 is a document that companies in India must file with the Ministry of Corporate Affairs (MCA) within 15 days of appointing an auditor. The form is used to provide information about the auditor and their appointment.
Why is Form ADT-1 Required Under Companies Act?
The purpose of Form ADT-1 is to ensure that the appointment of auditors is transparent and compliant with the Companies Act, 2013. The form provides details about the auditor's appointment, such as their name, address, and qualifications. It also includes information about the company, such as its name, registered office address, and CIN (Corporate Identity Number).
Who Must File Form ADT-1?
All companies registered in India, including private limited companies, public limited companies, and one-person companies, are required to file Form ADT-1 when appointing an auditor. The form must be filed within 15 days of the auditor's appointment.
What Documents Are Required to File Form ADT-1?
The following documents are required to file Form ADT-1:
- Auditor's consent to the appointment
- Board resolution approving the appointment of the auditor
- Letter of appointment issued by the company to the auditor
- Auditor's certificate regarding compliance with the eligibility criteria as per the Companies Act, 2013
In conclusion, Form ADT-1 is an important document that companies in India must file to ensure compliance with the Companies Act, 2013. By providing information about the auditor's appointment, the form helps to ensure transparency and accountability in the appointment process.
How to File Form ADT-1 on MCA Portal?
Form ADT-1 is a form that must be submitted by companies to appoint an auditor. The submission process for Form ADT-1 is straightforward and can be completed online. This section provides an overview of the filing procedure, fees and payment, and acknowledgment and receipt process.
Filing Procedure
To file Form ADT-1, the company must follow the steps below:
- Visit the Ministry of Corporate Affairs (MCA) website.
- Log in to the MCA portal using the company's credentials.
- Click on the "e-forms" tab and select "Form ADT-1."
- Fill in the form with the required details, such as the auditor's name and address, and attach the necessary documents.
- Once the form is complete, submit it online.
Fees and Payment
The fee for filing Form ADT-1 is based on the company's authorized share capital. The fee structure is as follows:
- For companies with authorized share capital up to Rs. 25 lakhs, the fee is Rs. 200.
- For companies with authorized share capital between Rs. 25 lakhs and Rs. 5 crores, the fee is Rs. 300.
- For companies with authorized share capital above Rs. 5 crores, the fee is Rs. 400.
- The fee can be paid online using a credit or debit card or through net banking.
Acknowledgment and Receipt
Once the Form ADT-1 is submitted, the company will receive an acknowledgment from the MCA. The acknowledgment will contain a unique transaction number and the date of submission. The company should keep this acknowledgment safe as it serves as proof of submission.
In conclusion, the submission process for Form ADT-1 is a simple and straightforward process that can be completed online. Companies must ensure that they fill in the form correctly and attach the necessary documents to avoid any delays in the appointment of an auditor.
Frequently Asked Questions About Form ADT-1
1. When exactly must Form ADT-1 be filed?
Form ADT-1 must be filed within 15 days of auditor appointment. For the first auditor (appointed by the Board within 30 days of incorporation), file within 15 days of the board meeting. For reappointment at AGM, file within 15 days from AGM date. For casual vacancy (resignation/removal), file within 15 days of the board appointing a new auditor.
Example: AGM on September 29 → File ADT-1 by October 14. No grace period; penalties start day 16.
2. What are the penalties for late filing of Form ADT-1?
Penalty structure: ₹100 per day for company + ₹100 per day per director in default (no maximum limit).
Example calculation:
- 30 days late, 3 directors = ₹3,000 (company) + ₹9,000 (3 directors) = ₹12,000 total
- 90 days late, 3 directors = ₹9,000 + ₹27,000 = ₹36,000 total
Non-financial consequences:
- Director disqualification under Section 164(2)
- DIN (Director Identification Number) deactivation
- Company marked non-compliant on MCA records
- Investor due diligence red flag
- Strike-off risk for persistent non-compliance
Compounding option: Pay additional ₹5,000-₹50,000 to settle offence via Form GNL-1.
3. What documents are required to file Form ADT-1?
Mandatory attachments (all companies):
- Board Resolution / AGM Resolution - Approving auditor appointment with audit fee and tenure
- Auditor's Written Consent - Letter of acceptance on auditor's letterhead
- Section 141 Certificate - Auditor's declaration of eligibility (no disqualifications)
- Appointment Letter - Company's letter to auditor confirming terms
Additional for casual vacancy:
- Resignation letter or removal resolution of outgoing auditor
Digital signatures required:
- Director DSC (authorized by board)
- Auditor DSC (practicing CA/firm partner)
Format: All documents in PDF, digitally signed, <10MB per file. Common rejection reason: Missing signatures or incomplete Section 141 certificate.
4. How much does it cost to file Form ADT-1?
MCA filing fees (based on authorized share capital):
- Up to ₹1 lakh: ₹200
- ₹1 lakh to ₹5 crore: ₹300
- Above ₹5 crore: ₹400
Total cost options:
- DIY filing: ₹2,000-₹5,000 (MCA fee + DSC + time) - 30-40% rejection risk
- Professional CA/CS: ₹3,000-₹8,000 (full service) - <5% rejection risk
- Mysa platform: ₹1,000-₹2,500 (automated + expert review) - <10% rejection risk
Late filing penalty: ₹100/day × delay days × (1 company + number of directors)
Example: 30 days late, 3 directors = ₹12,000 penalty (vs. ₹200-₹400 timely fee)
ROI of professional filing: Saves ₹10,000-₹90,000/year in avoided penalties and rejection re-filing costs.
5. What is the difference between first auditor appointment and reappointment?
First auditor appointment (Section 139(6)):
- Appointed by Board of Directors within 30 days of incorporation
- Holds office until conclusion of first AGM
- Must be ratified by shareholders at first AGM
- Form ADT-1 filed within 15 days of board meeting
Auditor reappointment (Section 139(1)):
- Appointed by shareholders at AGM
- Automatic 5-year tenure (or 1 year for certain companies)
- No special resolution needed unless appointing different auditor
- Form ADT-1 filed within 15 days of AGM
Key difference: First auditor = Board power (quick operational need), Reappointment = Shareholder decision (governance control). Both require separate ADT-1 filings.
6. Can I file Form ADT-1 after the auditor starts the audit?
Yes, but it's non-compliant and attracts penalties.
Form ADT-1 must be filed within 15 days of auditor appointment. Technically, the auditor should not begin audit work before ADT-1 is filed (appointment not officially recorded).
Practical reality: Many companies file late while audit is ongoing. This results in:
- Daily penalties (₹100/day for company + ₹100/day per director)
- Audit validity concerns in disputes
- Investor due diligence red flags
Best practice sequence:
- Hold AGM (Day 0)
- File Form ADT-1 (Day 1-13)
- Auditor begins fieldwork (Day 14+)
If already delayed: File immediately to minimize penalties. Don't wait further. Penalties accumulate daily from day 16 onwards.
7. What are the common reasons for Form ADT-1 rejection?
Top 10 rejection reasons:
- Incorrect CIN - Typo in Corporate Identity Number
- Director DSC mismatch - Signing director not authorized in board resolution
- Invalid auditor FRN - Firm registration number expired or incorrect
- Missing attachments - Consent letter, Section 141 certificate, or appointment letter missing
- Filed beyond 15 days - System auto-rejects late submissions without penalty payment
- Incorrect tenure - Wrong auditor tenure period mentioned
- Unsigned consent - Auditor's letter lacks signature/DSC
- AGM date mismatch - Date doesn't match AGM minutes
- Previous auditor not disclosed - Required for casual vacancy scenarios
- Incomplete Section 141 certificate - Missing specific eligibility declarations
Rejection rate: DIY filers 30-40%, Professional <5%, Mysa <10%
Cost of rejection: ₹200-₹400 new filing fee + ₹3,000-₹10,000 additional delay penalties
8. How can Mysa simplify Form ADT-1 compliance?
Mysa automates end-to-end ADT-1 filing:
Key features:
- Intelligent deadline tracking - Multi-channel alerts at Day 7, 10, 13 after AGM
- Pre-filled forms - 90% auto-populated from company data (CIN, directors, auditor details)
- Document templates - Board resolution, consent letter, Section 141 certificate
- Error detection AI - Validates 25+ common errors before submission
- Auditor collaboration - Secure portal for auditor to upload documents directly
- Real-time SRN tracking - Dashboard showing submission to approval status
- CA/CS network - Optional professional review or full-service filing
- Compliance dashboard - Traffic light system (Green/Yellow/Red) for all ROC filings
Pricing:
- DIY Pro: ₹1,000/year (self-filing with tools)
- Assisted Filing: ₹2,500 per filing (CA review)
- Full-Service: ₹5,000 per filing (end-to-end by CA)
- Annual Bundle: ₹25,000/year (all ROC compliance)
ROI: Saves ₹52,000-₹1,82,000/year (vs. traditional CA fees + penalty avoidance + founder time)
