Introduction

In the world of corporate governance, staying compliant with the regulatory framework is essential. One of the vital forms that ensure this compliance is Form ADT-1, a crucial document required for the appointment, reappointment, or removal of auditors in a company. It serves as an official notice to the Registrar of Companies (RoC) regarding the company’s chosen auditor for a given financial year.

In this comprehensive guide, we will take you through everything you need to know about Form ADT-1: from its filing process, and ADT-1 due date, to the fees involved, and the penalties for late submission. We will also provide actionable insights on how to make this process hassle-free.

Also Read: Section 410 Of Companies Act 2013

What is Form ADT-1?

Form ADT-1 is an official form that companies need to file with the Registrar of Companies (RoC) when there is a change in the status of the auditor. This form is specifically used to notify the RoC of the following changes regarding an auditor:

Appointment of a new auditor
Reappointment of an existing auditor
Removal or resignation of an auditor

According to the Companies Act, 2013, it is mandatory for companies to submit Form ADT-1 within 15 days from the date of the auditor’s appointment or reappointment, or within 15 days of the AGM (Annual General Meeting) where the auditor’s reappointment is confirmed.

This form helps maintain transparency in corporate governance by ensuring that the RoC has updated information about the company’s auditor.

Details of the Auditor in ADT-1:

Category of Auditor – Individual or Firm
Name of the Auditor – Name of the auditor (for an individual) or name of the firm (for an audit firm)
PAN of the Auditor – Permanent Account Number of the auditor or firm
Membership Number of the Auditor – Membership Number issued by ICAI (for individuals)
Firm Registration Number (FRN) – In the case of an audit firm, an FRN issued by ICAI must be provided
Address of the Auditor – Complete address of the auditor or audit firm
Email ID and Contact Number of the Auditor – Official email and phone number of the auditor/firm
Period of Appointment – From (start date) > To (end-date)
Date of AGM (Annual General Meeting) – Date when the appointment was approved in the AGM

Purpose of Filing Form ADT-1

The purpose of filing Form ADT-1 is simple yet critical: it ensures that the government and regulatory authorities are aware of who is responsible for auditing the company’s financial statements for the given year. This filing adds another layer of accountability and promotes corporate transparency.

By completing this filing, the company complies with statutory requirements under the Companies Act, 2013, which in turn builds trust with stakeholders, including investors, customers, and government bodies. It ensures that the company’s financial statements are being examined by a certified professional, reducing the risk of financial misreporting.

Who Needs to File Form ADT-1?

Form ADT-1 needs to be filed by various types of companies, including:

Private Limited Companies:
- Every private limited company is required to file Form ADT-1 after the appointment or reappointment of the auditor at the board meeting or AGM.
Public Limited Companies:
- Just like private limited companies, public limited companies must also file Form ADT-1 after appointing or reappointing their auditor.
One-Person Companies (OPCs):
- Even one-person companies are required to file Form ADT-1 when they appoint their auditor.

Whether you’re managing a private limited company, a public limited company, or an OPC, the filing of Form ADT-1 is essential for maintaining good standing with regulatory authorities.

Due Date for Filing Form ADT-1

It is important to file Form ADT-1 within the stipulated time to avoid penalties. The due date for filing Form ADT-1 depends on the type of appointment:

New Appointment of Auditor:
- If your company appoints a new auditor, Form ADT-1 must be filed within 15 days of the auditor’s appointment.
Reappointment of Auditor:
- If an auditor is reappointed during the AGM, Form ADT-1 must be filed within 15 days of the AGM date where the reappointment is approved.

The key takeaway is that the filing must be completed promptly to avoid the possibility of incurring penalties or facing legal complications. It’s also important to have a look at the relevant Form ADT-1 attachments.

Fees Applicable for Filing Form ADT-1

The filing fee for Form ADT-1 depends on the company’s authorized capital, as mentioned below:

Up to ₹1 Lakh in authorized capital: ₹200
₹1 Lakh to ₹5 Lakh in authorized capital: ₹300
₹5 Lakh to ₹10 Lakh in authorized capital: ₹400
₹10 Lakh to ₹50 Lakh in authorized capital: ₹500
Above ₹50 Lakh in the authorized capital: ₹600

These fees must be paid at the time of filing Form ADT-1 on the Ministry of Corporate Affairs (MCA) portal. The payment is necessary to complete the filing process and is calculated based on the size of the company’s authorized capital.

Penalties for Late Filing or Non-Filing of Form ADT-1

Failure to file Form ADT-1 within the prescribed due date can lead to penalties. The Form ADT-1 penalty structure for late filing is as follows:

₹100 per day for every day of delay beyond the due date.

The Form ADT-1 penalty accumulates daily, meaning the longer the delay, the higher the penalty. Therefore, it is vital to keep track of the due date and file the form as soon as possible to avoid financial strain from penalties.

In addition to the penalty, late filing or non-filing may also raise red flags with regulators and damage the company’s credibility. It is always better to file the form promptly rather than face unnecessary fines and reputational risks.

Step-by-Step Guide to File Form ADT-1

Filing Form ADT-1 on the Ministry of Corporate Affairs (MCA) portal is relatively simple. Follow these steps to ensure a smooth filing process:

Step 1: Log in to the MCA Portal

Log in to your MCA portal account using your credentials. If you don’t have an account, you will need to create one.

Step 2: Access Form ADT-1

Once logged in, navigate to the “e-forms” section on the MCA portal. From there, search for Form ADT-1 and select it.

Step 3: Fill in the Details

Enter the required details in the form, which will include:

Company details (CIN, company name, registered office address).
Auditor details (name, address, membership number, etc.).
Date of appointment and tenure, if applicable.
Attach a copy of the board resolution for the auditor’s appointment.

Step 4: Submit the Form and Pay the Fees

Once the form is complete, submit it online and pay the prescribed fees based on your company’s authorized capital.

Step 5: Confirmation

After submission, you will receive an acknowledgment from the MCA confirming the successful filing of the form.

By following these steps, you ensure that your company remains compliant with statutory regulations.

Common Mistakes to Avoid While Filing Form ADT-1

While filing Form ADT-1, it’s essential to avoid common errors that could delay the process or lead to rejections. Here are some mistakes to watch out for:

Incorrect Auditor Details: Double-check the auditor’s name, address, and membership number. Any discrepancies can lead to a rejection.
Missing Documents: Ensure that all necessary documents, such as the board resolution, are attached to the form.
Late Filing: Always keep track of the due date to avoid incurring penalties.
Incorrect Authorized Capital: Verify that the authorized capital mentioned in the form matches the company’s official records.

By avoiding these mistakes, you can streamline the filing process and ensure compliance.

Conclusion

Filing Form ADT-1 is an essential part of a company’s governance framework. By filing the form within the ADT-1 due date, businesses ensure their compliance with the Companies Act, 2013 and avoid penalties for late submission. The filing process is relatively simple, but it’s crucial to adhere to deadlines and avoid any mistakes.

If you’re looking for assistance with compliance-related matters or have any queries, RegisterKaro is here to help. Our team can provide you with expert insights and guidance to streamline your processes. Contact us at support@registerkaro.in for any assistance or advice. Let us help you navigate your business needs with ease.

Frequently Asked Questions (FAQs)

1. What is the importance of adhering to the ADT-1 due date?

A: Adhering to the ADT-1 due date ensures that your company stays compliant with the Companies Act, 2013. It also helps avoid unnecessary penalties and legal complications that may arise from late filings.

2. Can the ADT-1 due date be extended?

A: No, the ADT-1 due date cannot be extended. The form must be filed within 15 days from the appointment of the auditor or the AGM where the reappointment is confirmed. Failing to do so will lead to penalties.

3. How to track the ADT-1 due date and avoid missing it?

A: Setting up reminders and tracking the company’s financial calendar is an effective way to avoid missing the ADT-1 due date. You can also rely on automated compliance services to keep track of important filing deadlines.

4. What are the consequences of missing the ADT-1 due date?

A: Missing the ADT-1 due date results in penalties of ₹100 per day of delay, which can accumulate quickly. It’s crucial to file on time to prevent additional financial burden on the company.

5. How can a company ensure the timely filing of ADT-1 to meet the due date?

A: A company can ensure timely filing by preparing in advance, having all necessary documents ready (such as board resolutions), and submitting the form through the Ministry of Corporate Affairs (MCA) portal well before the ADT-1 due date.

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What is Form ADT-1? ADT-1 Filing, Due Date, Fees, and Penalty Explained

Rashmi Jeena

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