What is CSR-1 Registration?
CSR-1 Registration is a mandatory process introduced by the Ministry of Corporate Affairs (MCA) for all NGOs (Trusts, Societies, and Section 8 Companies) that wish to receive Corporate Social Responsibility (CSR) funding from corporates. By filing Form CSR-1, an entity gets registered with the Central Government and receives a unique CSR Registration Number.
This system ensures transparency and verifies that the CSR funds are utilized by credible and compliant organizations. Since April 1, 2021, it is illegal for companies to provide CSR funding to any entity that does not have a valid CSR-1 registration.
Who Can Apply for CSR-1 Registration?
To be eligible for CSR-1 registration, an entity must fall into one of the following categories:
- Section 8 Company: Registered under the Companies Act, 2013, with Section 12A and 80G registrations under the Income Tax Act.
- Registered Public Trust: Registered under the Indian Trusts Act or state laws, with Section 12A and 80G registrations.
- Registered Society: Registered under the Societies Registration Act, 1860, with Section 12A and 80G registrations.
- Government Entities: Entities established by the Central or State Government, or under an Act of Parliament/State Legislature.
Track Record Requirement: Generally, the entity must have an established track record of at least 3 years in undertaking similar activities. However, this requirement is waived if the entity is established directly by the company (or its holding/subsidiary) that is providing the funding.
Documents Required for CSR-1 Filing
Ensure you have the following documents ready before filing:
- Registration Certificate: Copy of the Registration Certificate of the Trust, Society, or Section 8 Company.
- PAN Card: Copy of the PAN card of the NGO.
- 12A & 80G Certificates: Valid registration certificates under the Income Tax Act.
- Digital Signature Certificate (DSC): Valid DSC of the authorized signatory (Director/Trustee/Secretary).
- Board Resolution: A resolution authorizing the signatory to sign and submit the CSR-1 form.
- Email & Mobile: Valid email ID and mobile number of the entity and the authorized person.
Step-by-Step Registration Process
- Preparation: Gather all necessary documents and ensure the authorized signatory has a valid Class 3 Digital Signature Certificate (DSC).
- Form Filling: Download Form CSR-1 from the MCA website. Fill in details like the entity type, registration number, address, email, and details of directors/trustees.
- Attachments: Attach the registration certificate and PAN card copy to the form.
- Digital Signature: The form must be digitally signed by the authorized signatory of the NGO.
- Professional Certification: The form must also be digitally certified by a practicing Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CMA).
- Submission: Upload the form on the MCA V3 portal.
- Approval: Upon successful submission, the system automatically processes the form and sends an approval email with the CSR Registration Number and a digitally signed approval letter.
Benefits of CSR-1 Registration
- Eligibility for Funding: It is the primary gateway to receiving CSR funds from profitable companies.
- Credibility: Being registered with the MCA enhances the NGO's credibility and trust among donors and the public.
- Listing on MCA Portal: The NGO gets listed in the national database of eligible implementation agencies.
- Legal Compliance: Ensures the NGO is compliant with the latest government regulations.
Consequences of Non-Registration
If an NGO fails to register using Form CSR-1:
- It cannot receive any CSR funding from corporate entities.
- Companies are legally prohibited from disbursing CSR funds to unregistered entities.
- It may miss out on significant partnership opportunities with large corporations.
- It risks being viewed as non-compliant or lacking transparency.
