New MCA Amendment Takes Effect July 14, 2025
The Ministry of Corporate Affairs (MCA) has ushered in a significant shift in corporate compliance with its recent notification G.S.R. 359(E), dated May 30, 2025. This pivotal amendment to the Companies (Audit and Auditors) Amendment Rules, 2025, which becomes effective on July 14, 2025, directly impacts the filing of Form ADT-1, particularly concerning the appointment of a company’s first auditor.
Previously, companies enjoyed an exemption when their Board of Directors appointed the initial auditor. However, that era of relaxed compliance is drawing to a close.
Understanding the Shift: Pre vs. Post-Amendment
To fully grasp the implications of this change, it’s essential to compare the regulatory landscape before and after the amendment.
The Pre-Amendment Scenario (Before July 14, 2025)
Prior to this amendment, the legal position, as per Rule 4(2) of the Companies (Audit and Auditors) Rules, 2014, explicitly stated: “The notice of appointment of the first auditor by the Board shall not be filed with the Registrar.”
This translated into a practical outcome where companies were not required to file Form ADT-1 for the first auditor appointed by the Board within 30 days of incorporation. ADT-1 was only necessary if the Board failed to appoint the first auditor, leading to the members making the appointment in an Extraordinary General Meeting (EGM).
The Post-Amendment Scenario (Effective from July 14, 2025)
The new rules introduce a clear and decisive change: Form ADT-1 must now be filed even for the first auditor appointed by the Board.
To facilitate this, the updated Form ADT-1 now includes “First auditor by Board of directors/members/C&AG” as a selectable option under the “Nature of Appointment” category, ensuring all appointment types are clearly identified.
At a Glance: Key Differences
The table below highlights the critical distinctions in ADT-1 filing requirements:
| Aspect | Before July 14, 2025 | After July 14, 2025 |
| ADT-1 filing for First Auditor (by Board) | Not Required (Exempted under Rule 4(2)) | Mandatory |
| ADT-1 filing for First Auditor (by Members) | Required | Required |
| ADT-1 filing for Auditor at AGM | Required | Required |
| ADT-1 Format | Limited appointment categories | Revised format with all appointment types listed |
What Companies Need to Do Now
With the effective date of July 14, 2025, rapidly approaching, companies must take proactive steps to ensure seamless compliance with the revised regulations. From this date onward, it is imperative that companies:
1.File Form ADT-1 with the Registrar of Companies (ROC) even when the first auditor is appointed by the Board of Directors.
2. Ensure timely Board resolutions and filings are executed within the prescribed time limit of 15 days from the date of the auditor’s appointment.
This amendment underscores the MCA’s continuous efforts to enhance transparency and streamline corporate governance. Companies are advised to review their internal processes and ensure their compliance teams are fully aware of these new requirements to avoid any penalties or procedural delays.
Author Bio
Kindly recheck everything only then publish the article. Don’t spread false information.
ADT-1 for first auditor is and was voluntary filing. the drop-down was available in the V2 form as well. ADT-1 for first auditor appointment is not mandatory. Rule 4 has not been amended and MCA has clarified the same in the FAQs released. Please recheck and publish the article.
I am not agree with this article. Read FAQ of MCA and Section 139(1) and 139(6)