Article · 12 min read

Auditing Requirements of a Private Limited Company in India

Razorpay Rize Free Beginner India

This is the piece that settles the 'do I really need an auditor from day one' question with a hard yes: it states plainly that every Pvt Ltd must have its financials audited annually by an ICAI-registered CA regardless of size or turnover, and that the first auditor is appointed by the board within 30 days of incorporation. It also separates the tax-audit turnover thresholds (1 crore, or 10 crore for digital transactions) from the mandatory statutory audit, which is exactly the distinction founders confuse. From Razorpay Rize, so it is written for Indian startup founders, not generic.

• Statutory audit by a CA is mandatory for every Pvt Ltd from day one, revenue or not, with the first auditor appointed within 30 days of incorporation (then ratified by shareholders for a five-year term).
• Only Chartered Accountants holding an ICAI Certificate of Practice can sign your statutory audit, and they must be independent of the company.
• It walks through the ROC forms tied to audit (ADT-1 for auditor appointment, AOC-4, MGT-7) and typical fee ranges (25,000 upwards), so you know what to budget.