An Auditor Appointment Letter is an essential legal document issued by a company’s Board of Directors to formally appoint an auditor. It not only fulfills a statutory requirement under the Companies Act, 2013 but also strengthens corporate governance and compliance.
📘 1. Introduction
Every company, whether private limited, public limited, or LLP (where required), must appoint an auditor for financial transparency. The appointment must be confirmed through an official letter, stating the terms, period, and responsibilities.
🗂️ 2. Types of Auditor Appointments
Depending on the company’s stage and legal requirement, auditor appointments fall under:
- First Auditor (within 30 days of incorporation)
- Subsequent Auditor (at AGM by shareholders)
- Casual Vacancy Auditor (due to resignation/death)
- Reappointment Auditor (for rotation or after term)
👥 3. Who Needs These Services?
- Private Limited Companies
- Public Limited Companies
- One Person Companies (OPC)
- LLPs (if required by agreement or sector regulation)
- Startups raising funding
🧑💼 4. Why Choose a License Registration Service Provider?
Hiring a compliance partner ensures:
- Correct format based on company structure
- Adherence to timelines under the Companies Act
- Drafting and Board/Shareholder resolution assistance
- MCA filing (Form ADT-1) and legal support
📝 5. Registration Process
Here’s how the process typically works:
- Board Meeting to approve appointment
- Issuance of Auditor Appointment Letter
- Consent letter from Auditor (Form 141)
- Filing Form ADT-1 with MCA within 15 days
- Updating statutory registers
📄 6. Required Documents
- Board resolution for appointment
- Auditor’s consent letter
- Certificate of eligibility (Section 141 of Companies Act)
- PAN & membership certificate of auditor
- Form ADT-1 (for ROC filing)
💸 7. Cost Involved
| Service | Approximate Cost (INR) |
| Drafting Auditor Appointment Letter | ₹500 – ₹1000 |
| ROC Filing (Form ADT-1) | ₹800 – ₹2000 |
| Complete Compliance Package | ₹2000 – ₹5000 |
⏱️ 8. Time Taken
- Drafting Letter: Same day
- ADT-1 Filing: Within 1–2 working days
- Full Compliance: 2–3 working days (with Board Resolution)
⚠️ 9. Common Mistakes to Avoid
- Missing the 30-day window for appointment
- Using outdated letter formats
- Failing to obtain consent from the auditor
- Not filing ADT-1 within 15 days
- Improper digital signature usage
📢 10. Call-to-Action (CTA)
Need help drafting your Auditor Appointment Letter and filing Form ADT-1?
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❓ 11. FAQs
📌 Q1. Is it mandatory to file Form ADT-1 after appointment?
Yes. It must be filed within 15 days from the date of auditor’s appointment.
📌 Q2. Can a company appoint the same auditor every year?
Yes, but rotation of auditors is mandatory for listed and certain unlisted companies under Section 139.
📌 Q3. What if the auditor refuses to accept the appointment?
You must obtain a new consent and issue a revised appointment letter.
📌 Q4. What if the appointment is delayed?
ROC may levy penalties under Section 147 for non-compliance.
