When an auditor resigns from a company, the process isn’t as simple as sending a goodbye note and walking away. The law requires a formal disclosure, and that’s where Form ADT-3 comes in. It’s the official document an auditor must file to inform the Ministry of Corporate Affairs (MCA) about their resignation, the reason behind it, and the circumstances that led to it.
Let’s dive into the details to understand its significance and the process associated with it.
Meaning of Form ADT-3
Form ADT-3 is a statutory form mandated under Section 140(2) of the Companies Act, 2013, used by auditors to notify the Registrar of Companies (ROC) about their resignation from a company. This compliance measure ensures that companies maintain transparency in their financial operations and uphold corporate governance standards.
The law clearly states:
- An auditor who resigns must file ADT-3 within 30 days of resignation.
- The filing must clearly state reasons for resignation, relevant facts, and supporting details.
This ensures that both the company and the auditor are compliant with statutory requirements.
ADT-3 Form Purpose
The core purpose of Form ADT-3 is to maintain transparency. It provides the government with a clear picture of why the auditor left and whether the resignation impacts financial integrity.
In simple terms, ADT-3 helps track:
- Whether the auditor resigned due to disagreements
- Whether there were issues in the financial statements
- Whether the auditor found something that needed disclosure
- Whether it was a normal exit after internal or personal reasons
It protects the auditor, safeguards stakeholders, and reinforces accountability.
Who Must File Form ADT-3
Only the resigning auditor files ADT-3.
This applies to:
- Individual auditors
- Audit firms
- LLPs acting as auditors
- Auditors of both private and public companies
The company does not file this form. Its job is to fill the casual vacancy after the resignation.
When You Must File ADT-3
You have exactly 30 days from the date you submit your resignation letter to the company.
For example:
If an auditor resigns on 1st August, ADT-3 must be filed on or before 31st August.
Missing this deadline leads to penalties, so timing matters.
What You Need to Include in Form ADT-3 (Checklist)
Here is everything that ADT-3 requires:
- Corporate Identity Number (CIN)
- Name and registered address of the company
- Category of auditor (individual/firm/LLP)
- Membership number of the auditor
- PAN details
- Audit Firm Registration Number (if applicable)
- Date of appointment
- SRN of the original ADT-1 (through which the auditor was appointed)
- Date of resignation
- Detailed reason for resignation
- Any other relevant facts or disclosures
- Whether there were any disputes or concerns
- Digital Signature Certificate (DSC) of the auditor
ADT-3 documents required:
- Resignation letter
- Any supporting documents explaining the reason
- Board resolution (optional but recommended for transparency)
Step-by-Step Filing Process for ADT-3 (MCA V3)
ADT-3 moved to a web-based form on the MCA V3 portal from 14 July 2025. So you now fill it directly in your browser instead of downloading and uploading a PDF. Here is the current process:
Step 1: Prepare your resignation
First, submit the resignation letter to the company and keep an acknowledged copy. You will attach it during filing.
Step 2: Log in as a Business User
Since the auditor files ADT-3, sign in to the MCA V3 portal as a Business User. A Registered User account cannot file or sign forms. Therefore, upgrade first if needed, and make sure your Digital Signature Certificate (DSC) is associated with your profile and mapped to your role.
Step 3: Open the ADT-3 web form
Next, go to MCA Services, then E-Filing, then Company Forms, and select Form ADT-3. The form opens in your browser as a web form.
Step 4: Enter the details
Once you enter the CIN, the portal pre-fills basic company data. After that, add the auditor category (individual, firm, or LLP), membership number, PAN, firm registration number where applicable, date of appointment, and date of resignation.
Step 5: Quote the ADT-1 SRN
The revised form now requires the Service Request Number (SRN) of the original ADT-1 through which you were appointed. This links your appointment to your resignation. So keep the SRN handy before you start.
Step 6: State the reason and attach documents
Then write a clear, factual reason for resignation and attach the resignation letter along with any supporting documents. Avoid vague wording, since clear and factual reasons are always safer.
Step 7: Save, submit, and sign
You can save the form midway if you need to. On submission, affix your DSC to authenticate the filing.
Step 8: Pay and download the acknowledgement
Finally, pay the fee if applicable, note the SRN that the system generates, and download the acknowledgement. You can also track the status anytime under the My Application section.
Penalties for Not Filing ADT-3
Late filing or non-filing of ADT-3 attracts a penalty under Section 140(3) of the Companies Act, 2013. Here is how the amount works out.
- ₹50,000, or an amount equal to the auditor’s remuneration, whichever is lower
- A further ₹500 for each day the default continues, subject to a maximum of ₹2,00,000
Note that this is a penalty and not a criminal fine, because the Companies (Amendment) Act, 2020, decriminalised the provision. Even so, the professional risk still matters. Regulators can treat persistent non-filing as negligence, and the Registrar can adjudicate the maximum penalty against auditors who ignore show-cause notices after missing the deadline.
What the Company Must Do After an Auditor Resigns
Once the auditor files ADT-3, the company has its own duties:
- Create a casual vacancy
- Appoint a new auditor
- File ADT-1 for the new appointment
- Update records and ensure continuity in audit work
Both parties must coordinate to avoid compliance gaps.
Common Reasons for Auditor Resignation
Auditor resignations can occur due to various reasons, and filing Form ADT-3 provides an opportunity to formally document these causes. Some common reasons include:
- Lack of Cooperation from Management: Instances where the company’s management or board does not provide sufficient support or access to financial records.
- Disagreements on Accounting Policies: Conflicts over the interpretation or application of accounting standards and policies.
- Professional Conflicts of Interest: Situations where the auditor’s independence or integrity may be compromised.
- Ethical Concerns: Concerns regarding ethical practices or adherence to regulatory requirements by the company.
Benefits of Timely Filing of ADT-3
1. Maintaining Transparency
Filing Form ADT-3 demonstrates the auditor’s commitment to transparency and accountability, reflecting positively on their professional conduct.
2. Legal Compliance
Timely filing ensures adherence to the Companies Act, 2013, protecting the auditor from penalties and legal complications.
3. Safeguarding Corporate Governance
By officially notifying the ROC, the filing of ADT-3 helps maintain robust corporate governance practices within the company.
Conclusion
ADT-3 isn’t just another compliance form. It’s a crucial document that ensures transparency when an auditor steps away from a company. Filing it on time, explaining the reasons clearly, and attaching the right documents keep both the auditor and the company safe from legal issues. When the process is followed properly, it maintains trust, clarity, and regulatory discipline – all of which are essential in corporate financial reporting.
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FAQs
Do all resignations need ADT-3?
Yes. Even if the resignation is for internal or personal reasons.
Can a company file ADT-3?
No. Only the auditor files it.
Does ADT-3 need a DSC?
Yes. Digital signature of the auditor is mandatory.
What if the auditor doesn’t file ADT-3?
They face penalties and professional repercussions.
Does ADT-3 apply to all companies?
Yes. Private, public, section 8, small, and listed companies are all covered under the Companies Act.
