All About Form CSR-1

Corporate Social Responsibility (CSR) has become an important part of doing business in India. Companies are now expected to spend a part of their profits on social and community development projects. But before a company can donate its CSR funds to any organization, that organization must be registered with the Ministry of Corporate Affairs by filing Form CSR-1.

If you are a company, NGO, or any entity involved in CSR activities, it is important to understand what Form CSR-1 is, why it is necessary, who should file it, how to file it, and what documents you will need.

What is Form CSR-1?

Form CSR-1 is an electronic form prescribed by the Ministry of Corporate Affairs, viz. (MCA) under the Companies Act, 2013. It is officially known as the “e-Form CSR-1”. The form must be filed by every NGO or implementing agency that wants to receive CSR funds from companies. Once the form is approved by the MCA, the organization receives a unique CSR Registration Number, which allows it to undertake CSR activities on behalf of companies.

Without this registration, companies cannot contribute their CSR funds to the organization, as per the CSR Rules amended in 2021.

Why is Form CSR-1 Required?

The government introduced the requirement of Form CSR-1 to ensure the key elements, like transparency and accountability, in the process of spending CSR funds. By registering NGOs and other agencies, the MCA can track how companies’ CSR contributions are used and ensure that the funds go to genuine and eligible organizations. This also helps companies identify authorized NGOs to partner with for their CSR projects, reducing the risk of funds being misused.

Who Needs to File Form CSR-1?

The following organizations must file Form CSR-1 if they wish to receive CSR funds from companies:

1. Registered Public Trusts – Either registered under the Indian Trusts Act, 1882 or any other relevant law.
2. Registered Societies – Organizations which is registered under the Societies Registration Act, 1860, or any state-level Act.
3. Section 8 Companies – Non-profit companies registered under the Companies Act, 2013.
4. Entities established by the Central or State Government – These include government-created funds or agencies.

Additionally, these organizations must have at least three years of experience in undertaking similar activities, unless they are established by the government or companies themselves.

How to File Form CSR-1?

Filing Form CSR-1 is an online process done through the Ministry of Corporate Affairs’ MCA21 portal. Here’s a step-by-step guide:

1. Download Form CSR-1 – Visit the MCA website and download the latest version of the e-Form CSR-1.
2. Fill in the Details – Enter details such as:
   • Type of entity (Trust, Society, Section 8 Company, etc.).
   • Registration number and date of incorporation or registration.
   • PAN number of the organization.
   • Contact details, email, and address.
3. Details of Members – Provide information on the Chairman/Secretary/Authorized Representatives of the organization.
4. Digital Signature – The form must be signed digitally by the authorized person of the NGO and a practicing professional (Chartered Accountant, Company Secretary, or Cost Accountant) certifying the correctness of the information.
5. Upload Documents – Attach supporting documents like registration certificate, PAN card, and governing documents (Trust Deed, Memorandum of Association, etc.).
6. Submit Online – After completing the form and attaching documents, submit it online through the MCA portal.
7. SRN Generation – After the final submission, a Service Request Number, refer as (SRN) will be generated for tracking the status.
8. Approval – Upon verification by the Registrar of Companies (ROC), the CSR Registration Number is issued if everything is in order.

Documents Required for Form CSR-1

To file Form CSR-1, you will need:

• Registration certificate of the organization (Trust deed, Society registration certificate or Certificate of Incorporation for Section 8 Company).
• PAN card of the organization.
• Governing documents like the Trust Deed, Rules & Regulations, or Memorandum of Association.
• Details of the governing body members or office bearers.
• Digital Signature Certificate (DSC) of the authorized signatory.

Important Points to Remember

• Filing Form CSR-1 is mandatory for NGOs to receive CSR contributions from companies under Section 135 of the Companies Act, 2013.
• Filing is free of charge; there is no government fee for submitting Form CSR-1.
• The form can only be filed online through the MCA portal.
• Once approved, the CSR Registration Number must be shared with companies donating CSR funds to the organization.

Conclusion

Form CSR-1 is an essential step towards ensuring that Corporate Social Responsibility funds are spent effectively and reach authentic organizations working for the welfare of society. It brings more accountability and transparency to CSR activities, benefiting both companies and NGOs as well. By properly understanding and completing the registration process as prescribed, NGOs can unlock new ways to partner with companies and provide contributions to the Sustainable Development Goals.