After incorporation of a company in the first annual general meeting, an Auditor must be appointed by the Board of Directors. The Auditor will typically hold term till the conclusion of 6th AGM or 5 years. The appointment of an Auditor can also be made for a period of 1 year, renewable at each annual general meeting.
Before the appointment of the Auditor, a written consent along with Certificate must be obtained from the CA, that he/she is eligible for appointment as Auditor of a company and that the proposed appointment is in accordance with the Companies Act.
The appointment of First Auditor of the Company must be completed by the Board of Directors within 30 days of incorporation. In case the Board of Directors fail to appoint an Auditor, the members of the company must be informed. The members will then be required to appoint an Auditor within 90 days at an Extra Ordinary General Meeting. An Auditor so appointed will hold office until the conclusion of 1st Annual General Meeting.Rotation of Auditors
While re-appointing Auditors for a limited company or specified company, it is important to be aware of the regulations pertaining to rotation of auditors. Individuals as an Auditor cannot be appointed as an Auditor for a term of more than 5 years. A firm of Auditors cannot be appointed as Auditors for more than two terms of 5 years. An Auditor who has completed his/her term of 5 years will also not be eligible for re-appointment for 5 years from completion of his/her term.
While rotating Auditors of a company, the following points must be taken in to account by the Board of Directors:
Any casual vacancy of the auditor must be filled by the Board of Directors within 30 days. If the casual vacancy is on account of a resignation of an auditor, then the appointment of the auditor must be approved at an Extra-Ordinary General Meeting convened within 3 months of the recommendation of the Board.Re-appointment of Retiring Auditor
Aa retiring auditor can be re-appointed at an Annual General Meeting if:
If at any Annual General Meeting, no auditor is appointed or re-appointed, the existing auditor will continue to be the auditor of the company.
Form DIR-3 KYC – KYC of Directors- A director identification number (DIN) is a unique identifying number assigned to a person who wishes to become a director or is already a director of a corporation. DIN is obtained by submitting an application in eForm DIR-3, which was originally intended to be a one-time process for anyone wishing to become a director of one or more companies.
However, as a result of an amendment to MCA’s register, all directors with DIN are now required to submit their KYC details in e-Form DIR 3 KYC every year.Purpose of the Form DIR-3 KYC-
As mentioned above, Every director shall inform all the companies in which he/ she is a director, of the DIN allotted to him/her in Form DIR-3B within 30 days of the receipt of intimation of approval of DIN. Similarly, the Secretary and Manager of a company shall inform the company of their Income-tax Permanent Account Number (PAN). The company needs to further information about the DIN of the directors to the Registrar in Form DIR-3C within 15 days of receiving the intimation.Documents Required to File DIR 3 KYC form
The documents required to file reform DIR 3 KYC is as follows:
· Details of Nationality
· Details of citizenship like gender, date of birth, etc.
· Permanent Account Number (PAN)
· Passport (compulsory when DIN holder is of foreign nationality)
· Driving License
· Aadhaar card
· Personal Mobile and Email ID
· Proof of Residential address.
· Voters Identity card
Aside from the aforementioned documents, directors must additionally have the following items on hand:
· To file the form, he used his digital signature.
· CA, CS, or Cost Accountants who are currently practicing the professional attestation of the above-mentioned documents. In the event of foreign nationals, an attestation by a defined authorized person is required.
· A declaration signed by them (applicant/director) and attested by CA, CS, or Cost Accountants in good standing.rocedure to File Form DIR-3 KYC WEB
The procedure to File Form DIR-3 KYC Web is explained in detail below:
· The applicant needs to log in to the MCA portal with valid credentials. After login, click on the MCA service option and then select DIN services. From the list of services, select the DIR-3 KYC Web option.
· On the new page, Provide the DIN details, mobile number, and email ID that are preloaded will display on the page.
· By clicking on the Send OTP option, an OTP will be redirected to the applicant’s mobile number and Mail ID. Furnish the OTP to verify.
· Pre-loaded details of the DIN Holder will display, check all the details, and click on submit button.
· A zero rupee challan and SRN will be generated if the form is filed on or before 30th September.