FreeComplianceADT-1: appointing the auditor at the AGM for five years
After the first auditor's term ends at the first AGM, the shareholders appoint an auditor for a five-year term under Section 139(1). The company then informs the Registrar in ADT-1 within 15 days of the AGM.
The process
- 1.Get the auditor's written consent and eligibility certificate.
- 2.Board recommends the appointment to shareholders.
- 3.Shareholders approve it by ordinary resolution at the AGM, for a term from that AGM to the sixth AGM.
- 4.File ADT-1 within 15 days, attaching the resolution, consent and certificate.
Rotation
Auditor rotation (a maximum of one five-year term for individuals and two for firms) applies only to listed companies and certain larger unlisted and private companies. Small private companies are generally outside rotation.
Casual vacancy and resignation
If an auditor resigns, the board fills the vacancy within 30 days and members approve it within three months. The resigning auditor files ADT-3 with the Registrar within 30 days.
Frequently asked questions
This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.
- Appointment of the first auditor of a company
How the first statutory auditor is appointed within 30 days under Section 139(6), who can be appointed, and whether ADT-1 is needed.
- Annual general meeting (AGM) rules for private companies
When a private company must hold its AGM, notice period, quorum, ordinary business, shorter notice and extensions.
- Annual compliance checklist for a private limited company
The yearly filings a private limited company in India must make: AOC-4, MGT-7, ADT-1, DPT-3, MSME-1, ITR, plus DIR-3 KYC every three years.