Overview of NGO CSR1 Filing
Form CSR 1 refers to the registration form for securing CSR funding. This Form is specified as Registration of Entities for undertaking CSR activities by the Ministry of Corporate Affairs. It is also mandatory for Non-Government Organisations (NGOs) to register to undertake CSR activities funded by Companies and Corporations. To receive CSR funding, all NGOs are mandated to register with Central Government by submitting Form CSR1. This is required for effective monitoring of CSR spending in our Country.
The laws associated with filing Form CSR1 is Section 135 of the Companies Act, which talks about Corporate Social Responsibility (CSR) and Companies (Corporate Social Responsibility Policy) Rules, 2014.
Benefits of CSR 1
The benefit of CSR1 is as follows:
- It improves the public image of NGOs.
- CSR activities become hassle-free
- It enhances the goodwill of NGOs.
- Secure funding from Corporate with fewer legal hurdles
Eligibility Criteria for NGO for CSR1 filing
Eligibility criteria for an NGO in order to CSR1 Filing are as follows:
- An NGO established under Section 8 of the Companies Act 2013 or a registered under Section 12A and 80G of the Income Tax Act 1961
- An NGO established under Section 8 of the Companies Act 2013 or a registered society or a registered trust, working under Central Government or State Government.
- Any NGO established under an Act of a State legislature or Parliament.
- An NGO, established under Section 8 of the Companies Act 2013, or Society or Trust registered under Section 12A and 80G of the Income Tax Act 1961, and has experience of at least three years in undertaking charitable activities.
Contents of Form CSR1
The contents to be provided in the Form CSR1 are as follows:
- Nature of NGO (entity)
- CIN Number or Registration Number
- Sate of establishment or incorporation
- Address and email ID of the NGO
- PAN of NGO
- Details of members, secretary, trustees, etc. of NGO
- Certification by a practising professional.
Important points related to NGO CSR1 Filing
A few important points with respect to Form CSR1 filing are as follows:
- Practising professionals must obtain an engagement letter for the certification of Form CSR1 from an NGO.
- Documents must be verified from original/certified records maintained by NGO before putting/attaching a signature to the Form CSR1
- Must ensure that records are properly prepared, in order and signed by authorised persons of NGO.
- All required documents and information are completely and properly attached to Form CSR1.
- The Practicing professional is liable for action under Section 448 of the Companies Act, 2013 for any wrong certification.
Documents required for NGO CSR1 Filing
Documents required for filing of Form CSR1 are as follows:
- PAN Card of NGO
- Mail ID and mobile number
- Details of members serving NGO
- Registration certificate
- 12A and 80G order copy
- NGO Darpan ID
- Signature of an authorised person with his PAN Card
- Trust Deed (in case of a Trust)
- Memorandum for a registered society
- Company CSR Policy
- Company CSR report
- Company sustainability report
- Details of subsidiary
- Details of other entity
- Signature of any one of the trustees serving registered Trust
- Signature of secretary/ chairperson of registered Society
- Signature of Director serving Company under Section 8
- Signature of authorised signatory in case of a company functioning under the ambit of State Legislature or Act of Parliament
- Signature of Practising professional like CA, CMA or CS.
Procedure in case of NGO CSR1 Filing
The filing procedure of Form for CSR Funding as per Rule 4(2) of CSR Amendment Rules, 2021 is as follows:
- Filing of CSR1
The NGO files Form CSR 1 with Registrar for registering itself with Central Government.
The Form is then verified by a professional like Chartered Accountant (CA), Certified Management Accountant (CMA) or Company Secretary (CS).
Form CSR 1 is submitted by the NGO filing it to the Registrar.
- Registration number generation
After submission of Form CSR1, a unique CSR Registration Number is granted.
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Frequently Asked Questions
CSR stands for Corporate Social Responsibility, as discussed under Section 135 of the Companies Act, 2013.
Form CSR1 is a registration form for getting CSR funding by implementing agencies from any company or Corporate.
MCA terms the Form CSR-1 as a Form for “Registration of Entities for undertaking CSR Activities”.
The two parts of Form CSR1 are as follows:
- The information about the NGO that intends to undertake CSR Activities
- Certification by practising professionals.
Section 8 Companies, public charitable trusts, or societies registered under Section 12A and 80G of Income Tax Act, 1961.
The basic/common benefits of CSR1 Filing are as follows:
- Improved image in public
- Enhanced goodwill
- Hassle-free CSR activities
- Less legal hurdles in getting funds
Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 is issued to bring more monitoring and reporting aspects of the CSR Funds spent. The Amendment Policy has directed that practising Chartered Accountants or other professionals can certify Form CSR-1 as given in the Amendment Policy.
Rule 3 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 states that every company, including its holding or subsidiary and also a foreign company, has its branch office or project office in India, which fulfils the criteria specified under Section 135 of the Companies Act, shall comply with provisions of this section and the Companies (Corporate Social Responsibility Policy) Rules, 2014.
As per Rule 4 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and its amendment made in 2021, the Board of Company shall ensure that the CSR activities/projects are undertaken by the company itself or through third parties.