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 up CSR projects toward welfare activities. Form CSR-1 may be a registration form for getting CSR funding by implementing agencies from the corporates. The shape CSR-1 is termed as 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, 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 businesses 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, 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, or 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 in 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:
Provision of Sub-Rule shall not affect the CSR Projects
- Form CSR-1 shall be signed and submitted electronically by the entity and shall be verified digitally by a Chartered Accountant in practice or a Company Secretary in practice or a Cost Accountant in practice.
- On the submission of the Form CSR-1 on the portal, a unique CSR Registration Number shall be generated by the system automatically.
- A company may engage international organisations for designing, monitoring and evaluating of the CSR projects or programmes as per its CSR policy as well as for the capacity building of their own personnel for CSR.
- A company may also collaborate with other companies for undertaking projects or 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 in accordance with 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 as approved by it and the Chief Financial Officer or the person responsible for financial management shall certify to the effect.
- In 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 and shall be competent to make modifications, if any, for smooth implementation of the project within the overall 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 mechanism 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. ”.
CSR Registration Infomation by MCA
Here in this section, we provide detailed information about CSR Registration information by MCA officials in PDF format like CSR expenditure, CSR reporting, the format of the annual report & much more in Hindi and the English language.
How to Register for CSR-1 Form
Ministry of Corporate Affairs has made available the Form CSR-1 on the MCA portal. According to the latest notification issued by the MCA to the effect that with effect from April 1, 2021, CSR funding will be open only to those NGOs registered with MCA. Let’s check the step by step guidance of the CRS registration procedure of CSR.
- First of all, 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 instruction in zip format.
- Open the zip file and the form CSR-1 will be available in fillable PDF form.
Instructions for Filling of E-Form CSR Registration
Common Instruction of CSR-1 Form
|Pre-fill||When you click the pre-fill button after entering the Corporate Identity Number in the e-Form, the system displays the name. This button may appear more than once in an e-Form and shall be required to be clicked for displaying the data about that field. You are required to be connected to the Internet for pre-filling.|
|Attach||Click the Attach button corresponding to the document you wish to attach. If you want to attach any other document, click the Optional Attachment button (Through Optional attachment, you can attach a maximum of five attachments).|
|Remove attachment||You can view the attachments added to eForm in the rectangle box provided next to the list of attachments. If the user wants to remove or delete any attachment, select the attachment to be removed and press the “Remove attachment” button.|
|Check Form||Once the e-Form is filled up, click the Check Form button for form level validation, for example, to check whether all the mandatory fields have been filled or not. If an error is displayed, rectify the error and click the “Check Form” button again. The message, “Form level pre scrutiny is successful” when the form level validation is complete. The form-level validation (Check Form) is done without being connected to the Internet.|
|Modify||The “Modify” button gets enabled after the check form is done. By clicking this button, you can make changes to the filled e-Form. The digital signatures, if already attached, shall be removed. Once you have changed the filled e-Form, click the Check Form button again.|
|Prescrutiny||You are required to be connected to the Internet for pre scrutiny. The “Prescrutiny” button gets enabled once the check form is done. On pre-scrutiny, the system level check is performed and if there are any errors, the same are displayed to the user. After correcting the pre scrutiny errors, attach the digital signature on the e-Form in the signature field.|
|Upload eForm||Once the eForm is pre scrutinised, filled and signed, it is ready for uploading on the MCA21 portal—login to the MCA21 portal with your user ID and password for uploading the eForm.|
Note: User is advised to refer to eForm specific instruction kit.
Form for voluntary reporting of Corporate Social Responsibility
Here, we provide detailed information about Instructions for Filling of E-Form CSR by MCA official in PDF format.
Frequently Asked Questions (FAQ)
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 for 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: