All You Need To Know About Form ADT-1

If you go through the available data for the financial year of 2022, you will come to know that approx. 167076 companies were incorporated in that year. The purpose of showcasing this data here is to let you know how many companies are incorporated in India per year. Sometimes, petty businessmen whose business is just limited to a particular locality register their company. After some time, either they closed it or heavy penalties were imposed on them. This is happening because of the lack of knowledge regarding the company’s compliance. 

Companies that register through MCA need to comply with the compliances given under the Companies Act of 2013. If, in any case, you fail to comply with them, your company has to face heavy penalties. Hence, one must be aware of these compliances. One such important compliance is Form ADT-1. The present blog will give you a complete idea regarding Form ADT-1; hence, you must read it till the end. 

What are Company Compliances? 

The action of the company to fulfil all the requirements prescribed under the Companies Act of 2013 is known as the fulfilment of company compliance. The purpose of these compliances is to keep an eye on the working of the company. All the compliance given under the company law is not applicable to all the companies. They are divided into various types like Private Limited Company compliances, One Person Company compliances, Limited Liability Partnership Firm compliances, etc. Hence, one must comply with them carefully. Some of the examples of the compliances applicable to Private Limited Companies are Form ADT-1, MGT-7, INC-20, MSME, AGM, MGT-8, etc. 

What is Form ADT-1? 

The form through which information regarding the appointment of the auditor of the company has been provided to the Registrar of Companies is known as Form ADT-1. In a company, it is compulsory to appoint an auditor after its commencement. After the appointment, the same thing must be informed to the Registrar of Companies. To provide this information, there is a procedure which one needs to follow. The procedure includes completing Form ADT-1 by filling in all the information, attaching the relevant documents, and submitting the same before the ROC. The entire process of submitting ADT-1 is online and can be completed through MCA. Some of the important things regarding ADT-1 are mentioned below: 

Documents Required 

• One copy of the board resolution of the company will be required 
• A written consent of the one who is being appointed as the auditor of the company. 
• A certificate from the auditor regarding that he or she is not disqualified from becoming the auditor of any company under section 141 of the company law 
• One copy of the intimation letter which has been provided by the company to the auditor must be attached 

Procedure to File ADT-1 

• Collect the information with respect to the company’s financial statements 
• It is compulsory to obtain the auditor’s consent to act as the company’s auditor.
• Go to the official or government web portal of the Ministry of Corporate Affairs. 
• Download the ADT-1 form from the official MCA portal and complete it as per the information asked in the same. 
• Check it twice after you fill in all the information asked to fill in the form. 
• Attach the relevant documents to the form. These typically include the auditor’s consent and any other necessary paperwork.
• Pay the prescribed fee for filing the ADT-1 form. You can find the fee details on the MCA website.
• Put together the form and attached documents along with the fee payment proof.
• You can submit the ADT-1 form at the MCA portal online. Follow the instructions on the website for submission.
• After submission, you will receive a confirmation or acknowledgement for your filing. Keep this for your records.
• Check the status of your ADT-1 form on the MCA website. If any issues or additional information is required, address them promptly.
• Keep copies of all the documents, including the filed ADT-1 form, for your company’s records.

Fees of Filing Form 

As mentioned in the procedure to file Form ADT-1, it is necessary to pay the requisite fees with the form. Given below are the fees required for the filing of the mentioned form. It is not exhaustive as there are many hidden changes included in it. One such expense is the professional fees.  

Penalties Regarding Form ADT-1 

For the completion of compliance of a company, time plays a crucial role. They have their dates or days within which they need to be completed. If any situation that time lapses, then they can be filed but with penalties. Some of the penalties with respect to the ADT-1 form are mentioned below in the table. 

Prescribed Time to File ADT-1 

Form ADT-1 filing generally depends upon the annual general meeting of the company. There are, however, two ways to submit this form. If an organisation is newly formed, it can be done after the first board meeting of the company, where directors indicate the auditor of the company, or within 15 days of an annual general meeting. One more important thing one must know is that following the board meeting, you have the same duration of time, 15 days, to file your paperwork with respect to the ADT-1.  

Key Points Regarding Form ADT-1 

Some of the key points that one must be aware of regarding the ADT-1 form are mentioned below: 

• All types of companies need to file this form called ADT-1. Companies here refer to Pvt. Ltd. company, Public companies, listed companies, unlisted companies, etc.  
• Whenever there is an appointment of an auditor, the company needs to file this form called ADT-1. For example, if a company has appointed an auditor to fill the vacancy of a casual auditor, in this regard as well, ADT-1 will be filed; it cannot be ignored because ignorance may attract a fine or penalty. 
• Filing the appointment of the first auditor is not mandatory, but it is advisable to do the same.  
• The auditor has nothing to do with this form. It means it is not the duty of the auditor to file ADT-1. It is the sole responsibility of the company.

Conclusion 

Form ADT-1 is a crucial compliance requirement under the Companies Act of 2013 in India. It provides a way to let the Office of the Registrar of Companies understand that an auditor has been assigned to a particular company. The ADT-1 form must be completed, the required documents must be attached, and the submission must be made online via the Ministry of Corporate Affairs (MCA) portal. In short, compliance with Form ADT-1 regulations is necessary to avoid fines and maintain India’s highest corporate governance standards in India. Hence, one must file this form within the prescribed time limit.