- The board appoints the first auditor within 30 days of incorporation (section 139(6)).
- At the first AGM, the company appoints an auditor to hold office until the sixth AGM, a five-year term (section 139(1)).
- ADT-1 intimates the appointment to the Registrar, within 15 days.
- For FY 2025-26, the income-tax return due date for audit cases was extended to 21 November 2026.
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How does a statutory audit work for an Indian company?
It starts almost at birth. The first auditor must be appointed within 30 days of the Certificate of Incorporation, before the company has much to audit.
After that, the cycle is annual. The auditor reviews the books after the 31 March year-end, signs the audit report, and the board places the audited accounts before the AGM. Then AOC-4 goes to the Registrar of Companies within 30 days.
Only a chartered accountant can sign. Section 141 allows a firm too, provided most of its partners practising in India are CAs, as the Companies Act section 141 text states.
There’s no size exemption. A dormant subsidiary with ₹1 lakh of bank interest still needs one.
What is the difference between a statutory audit and a tax audit?
Two audits, two laws. Often one firm does both in the same season.
| Point | Statutory audit | Tax audit |
|---|---|---|
| Law | Companies Act, 2013 | Income-tax law (section 44AB for FY 2025-26) |
| Who needs it | Every company | Businesses above turnover thresholds, such as ₹1 crore (₹10 crore with minimal cash) |
| Output | Audit report on financial statements | Tax audit report for the Income Tax Department |
| FY 2025-26 deadline | Before the AGM, by 30 September | Report by 21 October 2026 |
Foreign-owned companies often need a third report too. If you trade with your parent, transfer pricing rules call for an accountant’s report, and the tax return date for those cases is 30 November 2026.
The audit feeds your corporate tax return, so a late audit pushes everything back.
Does an EOR mean you skip the statutory audit?
Yes. If your India team is employed through an EOR, you have no Indian company to audit, and the EOR’s own accounts carry the payroll costs.
That saves an audit fee every year. And board time. An entity’s audit is worth paying for once you’re running real revenue or assets through India. The Corporate Laws (Amendment) Bill, 2026 proposes an audit exemption for some private companies, but it’s still pending.
How does Remunance keep your team audit-ready?
Remunance’s own entity carries your team’s employment costs, so the salary, PF and gratuity accruals sit in our books and our audit. You get monthly invoices and payroll reports that your head-office auditors can reconcile. If you already run an Indian entity, our compliance management service keeps payroll and labour filings clean ahead of audit season. To find out what your auditors will ask about India, talk to an India compliance specialist.
What else do people ask about statutory audit meaning?
Is statutory audit mandatory for a private limited company?
Yes. Every company registered under the Companies Act, 2013 needs one, including small, dormant and loss-making companies. There’s no turnover threshold.
Who can conduct a statutory audit in India?
A chartered accountant, or a firm where most partners practising in India are chartered accountants. Nobody else can sign the audit report.
How long is a statutory auditor appointed for?
The first auditor serves until the first AGM. That AGM then appoints an auditor for five years, until the sixth AGM.
Planning a hire in India?
Our founding team has run payroll and hiring in India for 22+ years, first as Remunance Systems, which was later acquired by ADP.