Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
30 days for the board
Every company must have its accounts audited, so appointing the first auditor is an immediate post-incorporation duty. The board of directors must appoint the first auditor within 30 days of incorporation. This ties into the requirement for a statutory audit from the first year.
The 90-day fallback
If the board fails to appoint within 30 days, the duty shifts to the members, who must appoint the first auditor within 90 days at an extraordinary general meeting. The first auditor then holds office until the conclusion of the first AGM, after which a regular appointment (usually for five years) is made. Confirm the current procedure and filings (ADT-1).
A worked example
Example: a company incorporated on 1 April should have its board appoint an auditor by 30 April. The company files the appointment (ADT-1) and the auditor signs off the first year’s accounts for AOC-4. Founders who delay this often discover at year-end that no auditor was appointed, complicating the filings. It’s a core post-incorporation step. Our team can arrange the appointment.