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by on April 24, 2025
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When an auditor resigns from a company, they must comply with legal formalities to ensure transparency. One of the key requirements under the Companies Act, 2013 is the submission of Form ADT-3. This document formally notifies the Registrar of Companies (ROC) about the auditor’s resignation. Understanding how to file Form ADT-3 correctly is essential to avoid penalties and ensure compliance.

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Understanding Form ADT-3

 

What is Form ADT-3?

Form ADT-3 is a mandatory filing required under Section 140(2) of the Companies Act, 2013. It serves as an official resignation notice from an auditor, ensuring that the company and regulatory authorities are informed about the change in auditors. This form helps maintain transparency and accountability in financial reporting.

 

Why is Form ADT-3 Necessary?

The Form ADT-3 filing ensures:

  • Legal compliance with the Companies Act, 2013

  • Transparency in corporate governance

  • A smooth transition for appointing a new auditor

  • Prevention of disputes regarding the resignation

  • Proper record-keeping by the ROC

Without submitting Form ADT-3, an auditor’s resignation is not legally recognized, which can lead to complications. Failure to comply can also result in penalties for the auditor and the company.

 

Step-by-Step Process to File Form ADT-3

 

Step 1: Collect Necessary Information

Before filing Form ADT-3, ensure you have the following details:

  • Company Name and Corporate Identification Number (CIN)

  • Auditor’s Name, Membership Number, and Firm Registration Number

  • Date of Resignation

  • Reason for Resignation

  • Any Additional Observations (if necessary)

It is essential to double-check these details to avoid errors, as incorrect information can lead to rejection of the form or legal complications.

 

Step 2: Download Form ADT-3

Visit the Ministry of Corporate Affairs (MCA) portal and download the latest version of Form ADT-3. The form is available in electronic format and must be submitted online through the MCA website. Ensure you have the most updated version to prevent technical rejections.

 

Step 3: Fill Out Form ADT-3

Enter the following details in Form ADT-3:

  1. Company Information – Provide the CIN, company name, and registered address.

  2. Auditor’s Details – Include membership number, firm registration number, and name.

  3. Resignation Details – Specify the resignation date and reason. Be clear and precise.

  4. Additional Comments – Mention any concerns related to the company’s financial affairs (if applicable). This section is optional but recommended if there are important observations.

When providing the reason for resignation, auditors should ensure clarity. Reasons can include:

  • Ethical concerns

  • Personal reasons

  • Conflict of interest

  • Non-cooperation by management

  • Financial irregularities observed in the company

Step 4: Attach Supporting Documents

To complete the filing of Form ADT-3, attach the following documents:

  • Resignation Letter (on official letterhead, signed by the auditor)

  • Board Resolution (if applicable) acknowledging the resignation

  • Any Relevant Correspondence between the auditor and company regarding the resignation

Ensure these documents are properly formatted and signed, as missing or incomplete documents can lead to delays.

 

Step 5: Digitally Sign Form ADT-3

The Form ADT-3 must be digitally signed using a Digital Signature Certificate (DSC) belonging to the resigning auditor or an authorized representative. The DSC ensures authenticity and prevents fraudulent filings.

 

Step 6: Upload and Submit Form ADT-3

Once the form is completed and digitally signed, log in to the MCA portal and upload Form ADT-3. Pay the required filing fee and submit the form. The filing fee varies depending on the company’s authorized capital. After submission, a Service Request Number (SRN) is generated, which can be used to track the application.

 

Step 7: Track Submission Status

After submission, track the status of Form ADT-3 on the MCA portal to confirm successful processing. If any issues arise, rectify them promptly by submitting the necessary corrections or additional documents.

 

Common Mistakes to Avoid When Filing Form ADT-3

 

1. Incorrect or Incomplete Information

Filing incorrect details can result in rejection of Form ADT-3. Double-check all the information before submission.

 

2. Late Submission

The form must be filed within 30 days of the auditor’s resignation. Delays may lead to penalties or non-compliance issues.

 

3. Missing Digital Signature

Failure to digitally sign the form will result in rejection. Ensure that the DSC used belongs to the resigning auditor or their authorized representative.

 

4. Not Attaching Mandatory Documents

The resignation letter and other supporting documents are necessary for acceptance. Ensure they are attached properly.

 

5. Not Following Up on the Submission

Once the form is submitted, track its status. If there are any issues, resolve them promptly to avoid unnecessary delays.

 

Consequences of Not Filing Form ADT-3

Failing to submit Form ADT-3 on time can result in:

  • Non-compliance penalties under the Companies Act

  • Legal complications affecting the auditor’s professional reputation

  • Inability to finalize the resignation

  • Delays in appointing a new auditor

The auditor remains responsible for compliance until the resignation is formally accepted by the ROC.

 

Conclusion

Filing Form ADT-3 correctly is crucial for auditors to resign legally and maintain professional integrity. By following the step-by-step guide, avoiding common mistakes, and adhering to deadlines, auditors can ensure compliance with the Companies Act, 2013. Tracking the submission status and confirming acceptance by the ROC will help finalize the resignation process smoothly. Proper filing of Form ADT-3 safeguards both the auditor and the company, ensuring seamless financial governance.

If you’re an auditor planning to resign, make sure to follow this guide carefully to avoid any legal hassles. Stay compliant, stay professional!

Posted in: Business, Finance
Topics: form adt-3
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