CSR Registration for NGO: How to Apply? Documents, Fees, Guidelines by MCA etc.

Corporate social responsibility (CSR) could be a variety of international private business self-regulation which aims to contribute to the societal goals of an activist, philanthropic, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices. Enactment of Companies Act, 2013 by the Ministry of Corporate Affairs (MCA), Government of India, was one of the world’s most extensive experiments of introducing CSR as a compulsory provision by imposing a statutory obligation on Companies to require CSR projects toward welfare activities. Form CSR-1 may be a registration form for getting CSR funding from implementing agencies from the corporates. The shape CSR-1 is called Form for “Registration of Entities for undertaking CSR Activities”.

Throughout this article, we provide detailed information about CSR registration for NGO (Form-1) with the complete details of documents required, Why CSR Implementation, the Provision of Sub-Rule shall not affect the CSR Projects & much more.

About CSR in India

The Corporate Social Responsibility concept in India is governed by Section 135 of the Company Act, 2013, and Rules made thereunder wherein the factors have been provided for assessing the CSR eligibility of Implementation, company, and Reporting of their CSR Policies. India has the foremost elaborated CSR mechanism and implementation strategy and has started its journey to line a benchmark in achieving sustainability goals and stakeholder activism in nation-building.

Ministry of Corporate Affairs (MCA)

The Ministry is primarily concerned with the administration of the Companies Act 2013, the Companies Act 1956, the Indebtedness Partnership Act, 2008 & other allied Acts and rules & regulations framed there-under mainly for regulating the functioning of the company sector by law. The Ministry is also liable for administering the Competition Act of 2002 to stop practices harming competition, market and sustain competition in markets, and shield consumers’ interests through the commission founded under the Act.

Why CSR Implementation?

The Board shall ensure that the CSR activities are undertaken by the company itself or through –

• A company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80 G of the Income Tax Act, 1961 (43 of 1961), established by the company, either singly or along with any other company, or
• A company established under section 8 of the Act or a registered trust or a registered society established by the Central Government or State Government; or
• any entity established under an Act of Parliament or a State legislature; or
• A company established under section 8 of the Act, a registered public trust or a registered society, registered under section 12A and 80G of the Income Tax Act, 1961, and has an established track record of at least three years of undertaking similar activities.
• (2) Every entity, covered under sub-rule (1), that intends to undertake any CSR activity, shall register itself with the Central Government by filing the form CSR-1 electronically with the Registrar, with effect from the 01st day of April 2021.

Read also: Top 10 NGOs in India.

Provision of Sub-Rule shall not affect the CSR Projects

• Form CSR-1 shall be signed and submitted electronically by the entity and verified digitally by a Chartered Accountant in practice, a Company Secretary in practice, or a Cost Accountant in practice.
• On the submission of Form CSR-1 on the portal, the system shall automatically generate a unique CSR Registration Number.
• A company may engage international organisations for designing, monitoring and evaluating CSR projects or programmes as per its CSR policy and for the capacity building of their own personnel for CSR.
• A company may also collaborate with other companies for undertaking projects, programmes, or CSR activities in such a manner that the CSR committees of respective companies are in a position to report separately on such projects or programmes per these rules.
• The Board of a company shall satisfy itself that the funds so disbursed have been utilised for the purposes and in the manner approved by it, and the Chief Financial Officer or the person responsible for financial management shall certify to the effect.
• In the case of the ongoing project, the Board of a Company shall monitor the implementation of the project with reference to the approved timelines and year-wise allocation. It shall be competent to make any modifications for smooth project implementation within the permissible time period. ”.

Some Sub-Rule shall be submitted.

In the said rules, in rule 5, for sub-rule (2), the following sub-rule shall be substituted, namely:-

The CSR Committee shall formulate and recommend an annual action plan to the Board in pursuance of its CSR policy, which shall include the following, namely:-

• The list of CSR projects or programmes that are approved to be undertaken in areas or subjects specified in Schedule VII of the Act;
• The manner of execution of such projects or programmes as specified in sub-rule (1) of rule 4;
• The modalities of utilisation of funds and implementation schedules for the projects or programmes;
• Monitoring and reporting mechanisms for the projects or programmes; and
• Details of need and impact assessment, if any, for the projects undertaken by the company:

Provided that Board may alter such plan at any time during the financial year, as per the recommendation of its CSR Committee, based on the reasonable justification to that effect. ”.

Documents Required for CSR-1 Registration

The documents required to upload for CSR-1 Registration is as follows:

• Copy of the registration certificate
• Copy of the PAN of the NGO with Form CSR-1
• DIN/PAN of the Director, Trustee, Secretary, etc. of the organization
• Copy of the Resolution authorizing the person by the entity with Resolution number and date of the resolution
• DSC of the person

Read also: What is NGOization?

How to Register for CSR-1 Form

The Ministry of Corporate Affairs has made available Form CSR-1 on the MCA portal. Let’s check the step-by-step guidance of the CRS registration procedure of CSR.

• Visit the MCA official portal and click (https://www.mca.gov.in/MinistryV2/companyformsdownload.html) this link to download the form.
• Scroll down the page till you find “incorporation services”.
• Download the Form with or without instructions in zip format.
• Open the zip file, and the form CSR-1 will be available in a fillable PDF form.

Instructions for Filling of E-Form CSR Registration

Common Instruction of CSR-1 Form

Note: The user is advised to refer to eForm specific instruction kit.

Frequently asked questions (FAQs)

Q. How can I get CSR for Ngo?

A. To get Empanelment with “National CSR Hub” at the Tata Institute of Social Sciences (TISS) Through the Companies who can Provide funding under Corporate Social Responsibility (CSR)

Q. How can I apply for CSR funding?

A. To give a snapshot, the CSR provisions in the act apply to companies with an annual turnover of 1000 crores INR or more and with more than five crores INR as net profit for a year. The act mandates spending at least 2% of the average net profit in three consecutive years on CSR activities.

Q. Who is eligible for CSR funding?

A. Having in the preceding financial year: Net worth > 500 crores. Turnover > 1000 crore. Net profit > 5 crores.

Q. What is the Sub-Rule shall be submitted?

A. The list of CSR projects or programmes that are approved to be undertaken in areas or subjects specified in Schedule VII of the Act;
The manner of execution of such projects or programmes as specified in sub-rule (1) of rule 4;
The modalities of utilisation of funds and implementation schedules for the projects or programmes; Monitoring and reporting mechanism for the projects or programmes; and Details of need and impact assessment, if any, for the projects undertaken by the company:

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