One Person Company (OPC) is One Person company incorporated under the Companies Act, 2013 and it is fully managed and controlled by a single person. OPC is covered under the definition of “Company” as defined under the Companies Act, 2013; therefore OPC needs to appoint the first auditor of the Company like any other company in India.

Appointment of Auditor for OPC

After the registration of OPC, the first meeting of Directors is conducted by a single Director to implement various legal formalities like the appointment of Auditor and filing of various forms with Ministry of Corporate Affairs, etc.

If OPC fails to appoint an auditor within 30 days then the shareholders may appoint the first auditor of the Company within 90 days from the date of incorporation of the company.

Format of Board Resolution for Appointment of Auditor is prescribed in sec 139 of the Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014.

Who is an Auditor?

An auditor is a qualified individual who is trained to review and verify accounting data of a company. The person has to be recognised as a Chartered Accountant (CA) as per the Chartered Accountant Act 1949 and can be deemed as an Auditor.

What is the purpose of the appointment of the Auditor?

The main purpose of an Auditor in a company is to protect the interests of the shareholders of the company. The auditor is bound by the law to examine and maintain the accounts and update the directors about the financial state of the company.

Procedure for Appointment of Auditor in OPC

An Auditor is appointed through the following steps:

Step 1: Board Meeting is conducted.

Step 2: Auditor is appointed in the OPC Board Meeting within 30 days from the date of registration of OPC.

Step 3: Appointment in Ordinary General Meeting or Annual General Meeting within 90 days from registration (If not appointed in a board meeting)

Step 4: Filling of form ADT-1 after Appointment in general meeting

Documents Required for Auditor Appointment

1. Consent letter for appointment of an auditor for 5 years
2. Copy of board resolution
3. Intimation letter by the Company

Legal Provisions for Appointment of Auditor of the OPC

Appointment of Auditor is mainly regulated by-

A.Companies Act, 2013

As per sec 139(1) of the Companies Act, 2013 every company/OPC shall at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting (AGM).

B.Companies (Audit and Auditors) Rules, 2014

Rule 4 of the Companies (Audit and Auditors) Rules, 2014 prescribes that every Company/ OPC shall inform the auditor concerned of his or its appointment and also file a notice of such appointment with the Registrar in Form ADT-1 within 15 days of the meeting in which the auditor is appointed.

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