Pvt Ltd Setup After July 14? Read This Before Appointing a Chartered Accountant

Once your company is incorporated you receive the Certificate of Incorporation, PAN and TAN etc and it becomes a legal entity.

Then the company require to open a current account in the company's name using incorporation documents and all share capital must be deposited by the shareholders into this account.

File Form INC-20A

You must apply for form INC 20A for the commencement of business within 180 days of incorporation.

Auditor Appointment - What Changed from 14 July 2025

The government has made it compulsory for every Private Limited Company to appoint a Chartered Accountant within 15 days from the date of incorporation or share transfer.

Fixed Fee Structure Announced

A fixed fee for the CA services related to ADT‑1 filing has been prescribed by the government. Regulated fees are applicable and should be adhered to.

Earlier

• Auditor (Chartered Accountant) was required to be appointed within 30 days of incorporation.
• Only board resolution was required - no online form, no filing fees.

New Rule

• W.e.f. 14 July 2025, Form ADT-1 are now to be filed online for auditor appointment.
• Filing must be done within 15 days of the Board Resolution date with challan fee of ₹300 for Form ADT-1.
• This applies to all auditor appointments on or after 14 July 2025.

Scenarios Based on Date of Appointment

If CA is Appointed on or Before 13 July 2025:

• Only a Board Resolution is required.
• No Form ADT-1 filing.
• No fee or online process needed.

If CA is Appointed on or After 14 July 2025:

• Board Resolution must be passed.
• File Form ADT-1 online with details of the appointment.
• Must file within 15 days of the Board Resolution date.
• ₹300 challan fee for online process

Points To Remember

• The Form ADT-1 must be filed within 15 days of the Board Resolution date.
• You cannot backdate the appointment or file after the deadline pretending it was passed earlier.
• If you delayed in filing, late fees will be charged twice every month, as per MCA norms.

Details Required For Form No. ADT-1

• Company Information - Corporate Identity Number, Name of the company, Address of the registered office of the company, Email ID of the company.
• Appointment and Auditor Details - Whether company is falling under any class of companies as per section 139(2)
• Nature of appointment
• Date of AGM, if appointed in the annual general meeting
• Date of appointment
• Number of auditor(s) appointed
• Category of Auditor - Auditor's Firm or Individual
• Firm Registration Number
• Name of the Auditor's Firm
• Income Tax permanent account number of auditor's firm
• Address of the auditor's firm
• Membership Number of Auditor signing the balance sheet of the company
• Name of the Auditor
• Income Tax permanent account number of auditor
• Address of the auditor
• Period of account for which appointed From (DD/MM/YYYY) To (DD/MM/YYYY)
• Number of financial year(s) to which appointment relates
• Whether the appointment of auditor is within the limits of twenty companies
• Has the auditor or auditor's firm or its member previously conducted audit or was in the same company, excluding previous years having break of five or more years as specified in Rule 6
• Specify the tenure of previous appointment(s) of the auditor or auditor's firm or its member in the same company in which audit was conducted or is functioning (excluding previous years having break of five or more years as specified in Rule 6)
• Whether the recommendation of the Audit Committee constituted u/s 177 of the Companies Act, 2013 has been considered by the Board of Directors before the appointment.
• Specify the SRN of INC-28 filed with ROC for Notice of order of the Tribunal for appointment of Auditor
• Appointment of Auditor due to casual vacancy
• Attachments

1. Copy of the intimation sent by company
2. Copy of written consent given by auditor
3. Copy of resignation letter tendered by the auditor to the company at the time of resignation
4. Copy of Central Government Order for appointment of Auditor
5. Optional attachment(s) - if any

Conclusion

To avoid penalties, companies must act promptly after incorporation - open a bank account, deposit share capital, file INC-20A and also to ensure timely CA appointment with ADT-1 filing.