Change of Auditor in India - Complete Guide 2026
📌 TL;DR - Change of Auditor Services at a Glance
Changing a statutory auditor involves 3 distinct legal routes: mandatory rotation at term-end (Section 139(2)), voluntary resignation by the auditor (Section 140(2)), or mid-term removal by the company (Section 140(1)). Each route has its own forms, timelines, and government approvals. Getting it wrong exposes your company to penalties of INR 25,000 to INR 5,00,000 under Section 147. Patron Accounting starting at INR 1,999 (Exl GST and Govt. Charges).
Changing a company's statutory auditor is one of the most process-intensive secretarial compliances under the Companies Act, 2013. Each of the 3 routes carries its own forms, timelines, and government approvals.
| Parameter | Key Fact |
|---|---|
| Governing Law | Sections 139, 140, 141 and 147 - Companies Act, 2013 |
| Applicable To | All companies - Private, Public, OPC, Listed, Government |
| 3 Routes | 1. Mandatory Rotation (Sec 139(2)) | 2. Resignation (Sec 140(2)) | 3. Removal (Sec 140(1)) |
| Key Forms | ADT-1 (new appointment) | ADT-2 (removal application) | ADT-3 (resignation by auditor) |
| Filing Deadlines | ADT-2: 30 days of Board resolution | ADT-3: 30 days of resignation | ADT-1: 15 days of new appointment |
| Penalty - Company | INR 25,000 to INR 5,00,000 under Section 147(1) |
| Penalty - ADT-3 Non-Filing | INR 50,000 or remuneration (whichever less) + INR 500/day up to INR 5,00,000 |
| Authority | MCA / ROC for filings; Central Government (Regional Director) for mid-term removal |
Auditor badalna kaise karen? Companies Act 2013 ke Section 140 ke anusaar, teen tarike hain: rotation (term khatam hone par), resignation (auditor khud resign kare), ya removal (company hataaye). Patron Accounting teenon routes manage karta hai - ADT-2, ADT-3 coordination, Special Resolution, aur ADT-1 filing sab included hai.
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