Appointment and rotation of statutory auditor is mandatory for one person company and small company.

As per Section 139(1) of the Companies Act, 2013, every company 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 and thereafter till the conclusion of every sixth meeting. The Companies Act, 2013 has introduced the system of rotation of auditors under section 139. As per Rule 5 of the Companies (Audit and Auditors) Rules, 2014, rotation of auditors is applicable to: all listed companies; all unlisted public companies having paid up share capital of rupees ₹10 crore or more; all private limited companies having paid up share capital of rupees ₹20 crore or more; all companies having paid up share capital of below threshold limit mentioned in (a) and (b) above, but having public borrowings from financial institutions, banks or public deposits of rupees ₹50 crore or more. In view of the above it is clear that appointment is applicable on all the Companies including one person companies and small companies, however, the provisions of rotation of auditors shall not apply to one person companies and small companies.