CSR-1 Registration for NOG,s

Overview of CSR-1 Registration

Every organisation or company is required to submit an e-Form CSR-1 for the Corporate Social Responsibility (CSR) activities done by them. For NGOs to engage in corporate social responsibility (CSR) initiatives supported by companies, they must register with the Central Government. This registration guarantees tracking of the CSR expenditures incurred in the country.

Rule 4(1) and Rule 4(2) of the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 and Section 135 of the Companies Act, 2013, states that companies or entities engaging in CSR activities are required to register with the Central Government by submitting the e-Form CSR-1.

What is CSR?

Corporate Social Responsibility, or CSR, is a practice that organizations all around the world are following. CSR is all about the acts done by the company in order to make certain improvements to the environment or the society.

The Corporate Social Responsibility (CSR) regulations in India were implemented in 2013. These regulations mandate that enterprises with a net worth of ?500 crore or more, or a turnover of ?1,000 crore or more, shall allocate 2% of their average net revenue from the preceding three fiscal years to CSR initiatives. The main aim of these rules is to encourage the companies to do something for the betterment of the society or nature.

Businesses may participate in CSR initiatives in a variety of ways. Typical instances include the following:

• Providing fundings to the NGOs, so they may carry out social or environmental projects.
• Implementing programs for environmental protection.
• Putting employee volunteer programs into action.
• Organising programs for societal development

If you own an NGO and need additional funding for fulfilling the objectives of your NGO, then getting funds from companies that contribute for the CSR activities can be quite beneficial. For this, you will be required to get a CSR-1 registration.

Understanding Form CSR-1

The CSR-1 registration form is required in order to receive CSR funds from companies that are required to perform CSR activities. The "Registration of Entities for undertaking CSR Activities" form is known as Form CSR-1. There are two primary components to the Form CSR-1:

• The information about the organization planning to engage in CSR activities is included in the first section.
• The certification by a practicing professional is the second section of Form CSR-1.

Who is eligible to file Form CSR-1?

The following requirements must be met in order for an NGO to get CSR funding from a business:

• A section 8 company having at least three years of experience in charity work, as well as be registered under sections 12A and 80G of the Income Tax.
• An officially recognized public trust having at least three years of experience doing charity work, as well as be registered under sections 12A and 80G of the Income Tax.
• A society that is registered, and has at least three years of experience doing charity work, as well as be registered under sections 12A and 80G of the Income Tax.
• It should be noted that funds contributed to CSR by an unregistered NGO cannot be deducted from CSR operations.

What are the benefits of filing CSR-1 Form?

There are several benefits of filing a CSR-1 form:

• It offers NGOs a one-stop solution with all the data and tools they require to meet the Companies Act's CSR obligations.
• This contains information about forthcoming CSR initiatives and tenders, along with an extensive database of NGOs that have registered.
• Furthermore, CSR-1 provides a number of value-added services to its members, including access to special research reports, networking opportunities with other non-governmental organizations operating in related disciplines, and training and capacity building programs.
• Members also get discounts on CSR related activities by the funding company.

What is the Rules pertaining to CSR-1 Form?

The Ministry of Corporate Affairs has required all social organizations looking for CSR funding or CSR implementing agencies to complete the CR-1 form, which is now available online. According to the Ministry of Corporate Affairs' announcement, starting on April 1, 2021, only NGOs that have registered with the MCA by submitting Form CSR-1 will be eligible to receive CSR funding.

On January 22, the provisions pertaining to Corporate Social Responsibility (CSR) of the 2019 Amendment to the Companies Act, 2013 went into effect. With effect from April 1, 2021, all entities covered by sub-rule (1) that want to engage in any kind of CSR activity will need to register with the Central Government by electronically submitting the form CSR-1 to the Registrar of Companies, in accordance with the new requirements. The terms of these subrules will not apply to CSR projects or programs that were approved prior to April 1, 2021.

The system will immediately produce a unique CSR Registration Number upon submission of the Form CSR-1 on the MCA website. By maintaining a list of all implementing organizations in this manner, the MCA raises the possibility that requested actions will be completed on time. The companies may use this implementation agency' prior performance history to inform their decision on which agencies to work with on future CSR initiatives.

Objectives of Form CSR-1

The objectives of form CSR-1 are mentioned below:

• To establish a trustworthy database for supporting the social cause of the company, and to increase transparency in the CSR operations of trusts, societies, and Section 8 businesses.
• The Indian government's dedication to supporting ethical corporate conduct and motivating enterprises to make contributions to environmental and social issues.
• It also highlights how important it is for CSR initiatives to be accountable and transparent, since this might eventually contribute to the development of trust between businesses and the general public.

What are the documents required for filing form CSR-1?

The documents required for filing the form CSR-1 are mentioned below:

• A copy of the entity's PAN card.
• A copy of the exemption certificates for 80G and 12A, if applicable.
• NGO darpan ID, in case it applies.
• A copy of organisation?s registration certificate.
• DSC of the authorized signatory to the document.
• PAN of the authorized signatory to the document.
• Trust deep or by laws of the society.
• Information about the other entities and the subsidiary.

What is the process of filing form CSR-1?

The process of filing the form CSR-1 is mentioned below:

 Acquire Digital Signature Certificate (DSC)

The entity?s director or representatives must take a digital signature certificate from the authorized authority recognized by the Ministry of Corporate Affairs.

Complete and Submit Form CSR-1

Form CSR-1 must be completed and submitted by the entity via the MCA site. The authorized representative should digitally sign the document, and a practicing-chartered accountant (CA), company secretary (CS), or cost accountant (CA) should digitally verify it.

Obtain CSR registration number

A unique CSR registration number will be generated when the form is submitted. This number can be used by the organization to confirm that it qualifies for CSR financing.

Why PSR Compliance for CSR-1 Registration?

At PSR Compliance, we assist NGOs such as Registered Section 8 Companies, Trusts, and Societies in obtaining CSR Registration. Documentation and consultation are the first steps in the process. These consist of the NGO's nature and kind, its CIN or registration number, application information, and NGO registration information. Before entering any information into the application, we double-check it to make sure it is 100% true and accurate.

All of the applications will be drafted in the required CSR-1 Form by our team of legal specialists. We remain in contact with you and keep a close eye on the progress of your application even after it has been submitted to the ROC. Our assistance doesn't finish until the ROC accepts your application and gives your NGO a CSR Registration Number.

Frequently Asked Questions

Q1- Whether 12A and 80G registration are required for CSR-1 Registration?

Yes, an NGO must have a 12A and 80G registration before applying for CSR-1.

Q2- What if an NGO does not file form CSR-1?

If an NGO does not fill form CSR-1, then it won?t be eligible to get CSR funding from any company.

Q3- Who can file form CSR-1?

Any organization including NGO, Trust or Section 8 company planning who wish to get CSR funding has to first file form CSR-1 on the MCA website.

Q4- Why should and NGO get CSR-1 registration?

An NGO that obtains a CSR-1 certification is qualified to get funding from businesses that are mandated to allocate 2% of their yearly net income to corporate social responsibility initiatives. Additionally, the NGO is eligible to apply for additional CSR funds that are made accessible through other government initiatives.

Q5- Can unregistered trusts or societies get CSR registration?

No, it is not possible for unregistered trust of societies to get CSR registration in any case.

Q6- How can an NGO apply for CSR funds in India?

In order to get CSR funds, the NGOs must initially, compile all the paperwork needed for CSR-1 registration. Next, obtain the CSR-1 E-form from the MCA website, fill it out completely, and provide the required documents, and get it certified by a cost and management accountant, company secretary, or chartered accountant. Get a trackable SRN on a receipt that you may obtain by submitting the form online via the MCA portal. An exclusive CSR Registration Number will be provided following the ROC's verification, allowing the NGO to carry out CSR operations in India.