The ADT 3 form is an essential compliance document under the Companies Act, 2013, used by auditors to notify the Registrar of Companies (ROC) about their resignation from a company. Filing this form ensures transparency, accountability, and regulatory compliance in corporate governance. But how does the ADT 3 form work? This blog will break down its purpose, filing procedure, and key requirements in a clear and simple manner.

Understanding the ADT 3 Form

The ADT 3 form is filed when an auditor resigns before completing their full term of appointment. The resignation could be due to personal reasons, professional disagreements, financial irregularities, or any other valid cause. By submitting the form, the auditor officially informs the government, ensuring that no company changes auditors without proper documentation.

Why is the ADT 3 Form Important?

The ADT 3 form serves multiple purposes, including:

✅ Ensuring Transparency – Helps regulatory authorities track auditor resignations.
✅ Preventing Corporate Mismanagement – Reduces the risk of companies changing auditors to manipulate financial statements.
✅ Protecting Stakeholders – Keeps shareholders, investors, and lenders informed about changes in audit oversight.
✅ Legal Compliance – Failure to submit the ADT 3 form on time can result in penalties for the resigning auditor.

Who Needs to File the ADT 3 Form?

Any statutory auditor of a company who resigns before completing their term must file the ADT 3 form. This applies to:

🔹 Individual Auditors – Chartered accountants working independently.
🔹 Audit Firms – Companies offering auditing services.
🔹 Internal Auditors (in some cases) – If legally required to notify regulatory bodies.

Whether it’s a private limited company, public company, or a one-person company (OPC), the ADT 3 form is mandatory for all types of businesses that appoint auditors.

How to File the ADT 3 Form?

Filing the ADT 3 form involves a step-by-step process that must be completed within 30 days of resignation. Below is a detailed guide on how it works.

Step 1: Collect Necessary Information

Before filling out the ADT 3 form, the resigning auditor must have the following details:

📌 Company Name and CIN (Corporate Identification Number)
📌 Auditor’s Details – Name, registration number, and contact details
📌 Date of Resignation – The exact date the auditor stepped down
📌 Reason for Resignation – Explanation for leaving the audit assignment
📌 Supporting Documents – Resignation letter, board resolution, or any relevant proof

Step 2: Access the MCA Portal

The ADT 3 form must be filed electronically via the Ministry of Corporate Affairs (MCA) portal. Here’s how to access it:

1️⃣ Go to the MCA website – www.mca.gov.in
2️⃣ Log in with your credentials
3️⃣ Navigate to E-Forms and select ADT 3

Step 3: Fill in the ADT 3 Form

Once the form is accessed, the auditor must enter:

✔ Company and Auditor Details
✔ Resignation Reason & Date
✔ Declaration by the Auditor

All information should be accurate and match the resignation letter submitted to the company.

Step 4: Attach Digital Signature (DSC)

The ADT 3 form requires a digital signature (DSC) of the resigning auditor, ensuring authenticity. If a firm is resigning, the authorized signatory of the firm must sign it digitally.

Step 5: Submit the Form

After verification, the auditor must submit the ADT 3 form online. Upon successful submission, the system will generate an acknowledgment receipt for reference.

What Happens After Filing the ADT 3 Form?

Once the ADT 3 form is submitted:

✔ The ROC Records the Resignation – The resignation is legally recognized.
✔ The Company Appoints a New Auditor – The company must appoint a new auditor within 30 days and notify the ROC.
✔ Stakeholders Get Informed – Investors and lenders can review the change through public records.

Failure to replace an auditor on time could lead to regulatory scrutiny and compliance issues for the company.

Common Mistakes to Avoid When Filing ADT 3 Form

🚫 Late Submission – Always file within 30 days of resignation to avoid penalties.
🚫 Incorrect Details – Ensure all information matches company records.
🚫 Missing Digital Signature – Without a valid DSC, the form will be rejected.
🚫 Not Keeping a Copy – Always keep an acknowledgment receipt for proof.

Consequences of Not Filing ADT 3 Form

If the ADT 3 form is not filed within the stipulated time, the auditor may face:

⚠ Penalties from the MCA and ROC
⚠ Legal Issues & Professional Consequences
⚠ Restrictions on Future Audits

To avoid these complications, auditors should ensure timely and correct submission of the ADT 3 form.

Final Thoughts: ADT 3 Form is Essential for Compliance

The ADT 3 form plays a vital role in corporate auditing compliance. Whether you are an individual auditor or part of an audit firm, filing this form ensures transparency, accountability, and legal adherence.

By understanding how the ADT 3 form works, businesses and auditors can maintain seamless transitions, protect stakeholder interests, and prevent legal issues. Always remember—corporate governance thrives on compliance, and the ADT 3 form is a crucial part of that process!