MCA Notifies Mandatory Filing of Form ADT-1 for First Auditor Appointment Effective 14 July 2025
The Ministry of Corporate Affairs (MCA) has notified a significant amendment under the Companies (Audit and Auditors) Rules, 2014, impacting the compliance requirements for the appointment of the first auditor by companies. This update introduces the mandatory filing of Form ADT-1 for such appointments, a shift from the previously followed compliance framework.
The rules were notified on 30th May 2025 and will be effective from 14th July 2025. The amendment aligns with MCA’s ongoing migration of forms from the V2 to the MCA V3 portal, promoting automation and increased regulatory transparency.
Key Change: Mandatory Filing of Form ADT-1 for First Auditor Appointment
Under the current provisions of the Companies Act, 2013, companies are required to appoint their first auditor within 30 days from the date of incorporation. As per Section 139(6), the appointment is made by the Board of Directors, or by the Comptroller and Auditor General of India (CAG) in the case of government companies.
Until now, there was no legal requirement to file Form ADT-1 for the appointment of the first auditor. The filing requirement only applied to subsequent auditor appointments under Section 139(1). Most companies fulfilled the compliance by merely passing a board resolution.
However, with this new update, the revised Form ADT-1, introduced on the MCA V3 portal, now specifically includes the reporting of the first auditor’s appointment. This revision means that the appointment of the first auditor will now require filing Form ADT-1 with the Registrar of Companies (ROC).
Applicability and Effective Date
- The rules were notified on 30 May 2025.
- The changes will be effective from 14 July 2025.
This leads to two key compliance scenarios:
Companies appointing their first auditor on or after 14 July 2025 must file Form ADT-1 in accordance with the new rules.
Companies appointing the first auditor on or before 13 July 2025 are not required to comply with this new filing requirement and may follow the existing practice.
Impact on Compliance and Filing Procedures
This move is part of MCA’s broader plan to shift statutory filings to the MCA V3 compliance ecosystem, which emphasizes transparency, digitization, and improved governance mechanisms.
For professionals, especially Company Secretaries, Chartered Accountants, and corporate legal advisors, this amendment means that:
The appointment of first auditors now becomes a reportable event, necessitating timely filing and documentation.
Incorporation and post-incorporation compliance checklists must now include ADT-1 filing as a mandatory item.
Delay in filing may attract penalties under the Companies Act, 2013.
Why This Update Matters
This procedural change marks an important shift in how early-stage corporate appointments are tracked by regulatory authorities. With the form now capturing data related to the first auditor, it is evident that MCA is working towards greater standardization and traceability in corporate compliance filings.
For startups and newly incorporated companies, this means that compliance timelines must be closely monitored. It also places greater responsibility on professionals to ensure clients are informed and compliant with the revised rules.
Conclusion
The mandatory filing of Form ADT-1 for the appointment of the first auditor, effective from 15 July 2025, represents a pivotal compliance change. Though procedural in nature, it reinforces the MCA’s intent to strengthen oversight and ensure consistency in corporate disclosures.
Companies incorporated after the effective date must ensure that their first auditor appointment is not only timely but also properly documented through the ADT-1 e-form on the MCA V3 portal.
Author Bio
