Starting 14 July 2025, the Ministry of Corporate Affairs (MCA) has introduced a crucial compliance requirement for newly incorporated companies in India. Earlier, appointment of the first statutory auditor did not mandate filing of Form ADT‑1, but following the Companies (Audit and Auditors) Amendment Rules, 2025, ADT‑1 must now be filed even for the first auditor appointment
This article explains the background, effective date, timeline, required procedures, penalties, and practical steps involved in Mandatory Form ADT‑1 filing in case of first auditor appointment.
Background & Regulatory Amendment
- Under Section 139(6) of the Companies Act, 2013, the board must appoint the first auditor within 30 days of incorporation (or members in an EGM within 90 days if the board fails)
- Previously, Rule 4(2) of the Audit & Auditors Rules applied only to subsequent auditor appointments under Section 139(1), meaning ADT‑1 filing was not required for the first auditor
- The Companies (Audit and Auditors) Amendment Rules, 2025, notified on 30 May 2025 and coming into force from 14 July 2025, formally introduce ADT‑1 filing for first auditor appointments on the MCA V3 portal
Effective Date & Applicability
| Scenario | Filing Required? | Timeline Applies |
|---|---|---|
| First auditor appointment before 14 July 2025 | No | Existing practice (board resolution only) |
| First auditor appointment on or after 14 July 2025 | Yes | ADT‑1 must be filed electronically |
| Subsequent auditor appointments | Yes | ADT‑1 already applicable under Section 139(1) |
- The effective date of ADT‑1 mandatory filing is 14 July 2025
What Changed in Form ADT‑1?
The updated ADT‑1 on the MCA V3 portal now includes:
A specific option/category for “First Auditor” appointment.
Prohibition of placeholder SRNs (e.g. “Z9999999”); valid SRNs must be provided.
Additional detail fields to capture prior compliance or audit committee inputs.
These enhancements improve transparency and facilitate standardized data capture.
Timeline for Filing
For companies incorporating on or after 14 July 2025:
Board Meeting: Must happen within 30 days of incorporation, during which the first auditor is appointed.
Form ADT‑1 must be filed within 15 days of that board appointment event (i.e., the board meeting date).
If the board fails, members must appoint the auditor via an EGM within 90 days, and similar timelines apply from that date.
Key Details & Attachments Required
Form ADT‑1 must include:
Company CIN, name, registered address, email.
Auditor’s details: individual vs firm, CA membership number, PAN, address, email.
Period of appointment; date of board meeting (or EGM) and auditor appointment.
Nature of appointment: “First Auditor” category option.
Attachments:
Board resolution (or EGM resolution) appointing the auditor.
Auditor’s written consent.
Auditor’s eligibility certificate under Section 141.
Copy of intimation letter sent to the auditor.
Filing Process on MCA V3 Portal
The ADT‑1 form is now interactive web‑based, no PDF uploads required.
Digital Signature Certificate (DSC) or OTP‑based authentication via email/mobile is used.
The system performs validations: appointment period vs financial year, SRN cross‑checking with linked filings like AOC‑4, etc.
Penalties for Late or Non‑Filing
Late filing attracts penalties increasing with delay:
| Delay in Filing | Penalty (multiple of normal fee) |
|---|---|
| Up to 30 days | 2 × Normal Fee |
| 31–60 days | 4 × Normal Fee |
| 61–90 days | 6 × Normal Fee |
| 91–180 days | 10 × Normal Fee |
| Over 180 days | 12 × Normal Fee |
The normal fee for Rs. 1 Lakh Capital is Rs. 300/-
Also consequences under Companies Act could include fines or imprisonment for defaulting officers
Why This Change Matters
Reinforces regulatory visibility on initial audit oversight.
Aligns first auditor appointment with broader corporate governance transparency.
Requires professionals and company secretaries to update their incorporation compliance checklists to include ADT‑1 filing as a mandatory step post‑appointment for companies incorporated on or after 14 July 2025.
Practical Checklist
Monitor incorporation date and ensure first board meeting within 30 days.
Appoint first auditor within that board meeting.
Collect auditor’s consent and Section 141 eligibility certificate.
Draft and pass board resolution; send intimation letter.
File Form ADT‑1 within 15 days of appointment via MCA V3 portal.
Retain acknowledgement and ensure cross‑linking with AOC‑4 when filing.
Stakeholder Roles
Company’s Board: Appoints the auditor; ensures compliance.
Company Secretary / Compliance Officer: Prepares Form ADT‑1; uploads and tracks submission.
Auditor: Provides consent and eligibility certificate.
MCA Portal: Tracks and stores data – alerting authorities in case of delay.
Conclusion
In summary, Mandatory Form ADT‑1 filing in case of first auditor appointment is a significant compliance upgrade introduced by the MCA via the Audit and Auditors Amendment Rules, 2025, effective 14 July 2025. Companies incorporated on or after this date must file Form ADT‑1 within 15 days of appointing their first statutory auditor. This change enhances governance, transparency, and consistency in corporate disclosures.
Companies, professionals, and governance advisors must therefore update compliance procedures to include ADT‑1 for first auditor appointment and ensure timely submission to avoid penalties.
