Legal aspects for appointment of first Statutory Auditors in a Private Limited Company and Procedure Involved

Harsh Jain | Last updated: 13 January 2023

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Appointing the first statutory auditor is a crucial compliance for Private Limited Companies under the Companies Act, 2013. This auditor, a Chartered Accountant, ensures financial statements are accurate and present a true view. The appointment is typically made by the Board of Directors within 30 days of incorporation, or by the members in an EGM if the board fails to act within 90 days. The process involves obtaining consent and eligibility certificates from the auditor and passing necessary resolutions in board or general meetings.

Appointment of statutory auditors in a Company incorporated under the Companies Act is one of the important compliance to which every Company should adhere to in terms of Section 139 of the Companies Act, 2013. The auditor so appointed shall carry out the statutory audit of the financial statements which includes books of accounts, statutory records, documents, vouchers, invoices etc. of the Company to ascertain that the financial statements are free from material misstatements and present a tru

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About the Author

Harsh Jain

Junior Associate

I am a Law graduate from Dr. Bhimrao Ambedkar University, Agra and pursuing CS. Currently, I am working as Junior Associate with Sarvaank Associates LLP. I am dealing in with Secretarial and Labor documentation, due diligence activities and drafting of minutes, resolutions, filing forms etc. Further, assisting and r ... Read more

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