All You Need To Know About Form ADT-1

In response to the COVID-19 situation, the government has launched the Companies Fresh Start Scheme (CFSS) 2020s to complete their filing requirements and payment of normal fees without incurring penalties. The forms that are eligible for filing under CFSS 2020 include Form ADT 1 and PAS 3, annual return ( Form MGT 7), financial statement ( Form AOC 4), and MGT 14 among others.

The Registrar of Companies must be notified when a company appoints an auditor to check their account books as per law. In accordance with Section 139 (1) of the New Companies Act, 2013, every company is required to register the auditor’s name and other details with the ROC via. Under this Section, all information regarding the appointment must be communicated to the ROC as soon as possible, and penalties will be imposed if this is not done. 

 Let’s take a look at everything you need to know. 

DUE DATE: As per the new Companies Act 2013, details regarding the auditor and his/her appointment must be notified to the ROC, at least within 15 days of the appointment. Such notice must be filed through Form ADT 1 which may be found and filled through the MCA portal. For instance, if the AGM in which the auditor was formally appointed occurred on the 30th of September, Form ADT-1 must be filed at least by the 14th of October.

What is Form ADT-1?

Form ADT-1 works basically as an intimation to the ROC by every company which appoints an auditor after holding their Annual General Meeting (AGM). This form must be filed every year with the ROC after the conclusion of the AGM, and appointment of the auditor.

Government Filing Fees 

If the nominal share capital

• Is less than 1 lakh –  ₹ 200
• Falls between 1 lakh and 5 lakhs –  ₹ 300
• Is between 5 lakhs and 25 lakhs –  ₹ 400
• Falls between 25 lakhs and 1 crore –  ₹ 500
• And falls exceed 1 crore –  ₹ 600

Penalty on Delayed Filing 

If the delay is

1. Up to 30 days, then the penalty will be twice the normal fees
2. Between 30 and 60 days, then the penalty will be four times the normal fees
3. From 60 to 90 days, then the penalty will be six times the normal fees
4. Between 90 and 180 days, then the penalty will be ten times the normal fees
5. Exceeds 180 days, then the penalty will be twelve times the normal fees

Important Points for ADT-1 Form

1. All Private/Listed/Unlisted/Public/One Person and any other Company must file Form ADT-1
2. The company itself is responsible for filing the form and this is not the responsibility of the auditor
3. Even if the auditor is appointed casually, Form ADT-1 must be filed.
4. The form may be filed even for the appointment of the company’s first auditor if deemed necessary.
5. Form ADT-1 may be filed electronically online via the Ministry of Corporate Affairs website
6. The e-form uploaded this way will be auto-approved
7. If the form is successfully registered, then the authorities will send an acknowledgment email to the registered email ID of the company
8. Form ADT-1 has replaced the old Form 23B which the auditor was expected to file on receiving the appointment letter from a company. Form 23B was to be filed at least within 30 days after receiving the appointment letter. However when the new Companies Act 2013, was introduced, this procedure was scrapped, and the new Form ADT-1 was introduced.
9. Also while the company files its AOC-4, it must mention the SRN number of the ADT-1 form.

Exceptions

It is not obligatory to file Form ADT-1 for the initial auditor if a company appoints its auditor for the first year following its incorporation. The obligation to file Form ADT-1 is specified in Section 139(1) of the Companies Act, 2013.

Eligibility Criteria

Form ADT-1 must be filed by all types of companies, whether listed or unlisted, private or public, except in the case of the first auditor. When filing AOC-4, individuals must include the SRN (Service Request Number) of Form ADT-1. If Form ADT-1 has been filed, enter the SRN of that form accordingly.

The following details of the Auditor must be supplied through the form:

1. Auditor Category
2. PAN of auditor
3. Membership Number of auditor
4. Auditor FRN
5. Address/ Email ID of Auditor
6. Period of appointment
7. Date of Appointment of the Auditor
8. Date of AGM
9. Tenure of the last auditor
10. Additional details regarding the vacancy
11. SRN from ADTR-3
12. FRN of the previous auditor
13. Reason and date of a casual vacancy

Conclusion

As a result, we hope that our responses have adequately addressed your concern regarding the registration of company in India; if you need any additional assistance, please do not hesitate to contact us. We will be delighted to provide you with any assistance you require.

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