MCA Advisory: How to Fix PAN Validation Error in Form ADT-1 for Sole Proprietorship Auditors
Ministry of Corporate Affairs (MCA), Government of India, has issued an important advisory for companies and stakeholders while filing Form ADT-1—the form used for the appointment of auditors.
Stakeholders may encounter a “PAN Validation Error” while appointing an auditor who operates through a Sole Proprietorship firm. This issue typically arises because the MCA portal expects a specific category selection linked to PAN validation.
Solution:
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While filling Form ADT-1, select the Category as “Individual” instead of “Firm” for the auditor.
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This step ensures that the PAN validation process is completed successfully and the form can be submitted without errors.
This clarification from the MCA is intended to smoothen the filing process and avoid unnecessary rejections or delays in auditor appointments.
Takeaway: If you are appointing a sole proprietorship auditor, always choose “Individual” as the category in Form ADT-1 to prevent PAN validation issues and ensure smooth filing. This small step can save time and avoid unnecessary form rejections.
About Form ADT-1 : Form ADT-1 is the statutory form prescribed under the Companies Act, 2013, used for the appointment of an auditor in a company. It is filed with the Ministry of Corporate Affairs (MCA) to formally notify the auditor’s appointment, reappointment, or removal, ensuring compliance with Section 139 and related provisions. The form captures key details such as the auditor’s name, membership number, PAN, and the period of appointment. Recently, MCA clarified that in cases where the auditor operates through a sole proprietorship, a “PAN Validation Error” may occur; in such situations, the filer must select the category as ‘Individual’ in ADT-1 to successfully complete the filing. Proper submission of Form ADT-1 ensures legal validity of the auditor’s appointment and maintains transparency in corporate governance.
MINISTRY OF CORPORATE AFFAIRS
GOVERNMENT OF INDIA
Important Update from MCA
Stakeholders are advised that if a ‘PAN Validation Error’ occurs while appointing an auditor who has a ‘Sole Proprietorship firm’ in Form ADT-1, do the following:
Select the Category as “Individual” in the Form ADT-1 to proceed with the filing.
This will help ensure smooth validation and successful submission of the form.
