CSR-1 Registration For NGO
Corporate Social Responsibility is a mandatory compliance for companies established in India. Such companies can either undertake CSR activities themselves or outsource the same to NGOs. NGOs can receive CSR grants from body corporates in order to undertake CSR activities on their behalf. For this, they are required to obtain the CSR registration with the Registrar of Companies under the Indian Ministry of Corporate Affairs. To get a complete overview of CSR registration, refer to the video alongside.
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CSR Registration Online in India
CSR or Corporate Social Responsibility is a mandatory contribution to be made by eligible companies towards the welfare of the community or society. The contribution is secured in the CSR funds maintained by the concerned companies. These funds can either be utilised by the body corporate maintaining them, or can be outsourced to NGOs which shall undertake CSR activities on the behalf of the body corporate. For this purpose NGOs may receive grants from the CSR funds of body corporates, provided they are registered as “Bodies undertaking CSR activities” with the ROC. The regulation regarding registration of NGOs for obtaining CSR funds and undertaking CSR activities was introduced from 1st April, 2021.
NGOs eligible for obtaining CSR registration
Non-profit, non-governmental organisations are usually involved in activities for the welfare and advancement of the society and are hence best suited to undertake CSR activities outsourced to it by the body corporates liable to corporate social responsibility. For outsourcing CSR activities, the corporates shall have to grant CSR funds to such NGOs. For this, NGOs shall have to obtain a prior registration from the Registrar of Companies. The NGOs eligible for undertaking CSR activities and obtaining CSR registration have been mentioned in the table below.
|S.No||List of NGOs eligible for CSR Registration|
Section 8 companies registered under Section 12 A and 80 of the Income Tax Act
Registered Society also registered under Section 12 A and 80 of the Income Tax Act
Registered Public Trusts also registered under Section 12 A and 80 of the Income Tax Act
Registered society or registered public trust established by the Central or State governments
Note that all the above entities must have a track record of undertaking at least 3 years of permitted social welfare activities, an elaborate list of which has been provided for here.
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Stepwise process of CSR Registration for NGOs
To obtain CSR registration, NGOs need to file form CSR 1 online, and submit it to the Registrar of Companies, along with all the prescribed documents. We have mentioned the step by step process of CSR registration below, for your easy and comprehensive understanding.
Process of obtaining CSR registration
STEP 1 – DocumentationDocumentation is the most significant aspect on which the approval or rejection of the application for CSR registration depends. Therefore, it is advised that you arrange all the documents required to be submitted along with the application beforehand to avoid any hassle or hindrance in the process of CSR registration.
STEP 2 – Filing of Form CSR 1The application for CSR registration, CSR 1, is available online on the MCA website. The form can be filled online with all the details that have been asked for in the application. The form can be signed by
STEP 3 – Certification of Form CSR 1Once filled out, the form must be certified by an independently practising CA, CS, or CMA ensuring that the details and documents furnished in the application are 100% authentic.
STEP 4 – Submission of Form CSR 1After the form CSR 1 has been filled out and certified by the authorised professional, it can be submitted online on the MCA portal along with the prescribed application. Make sure that the documents uploaded along with the CSR application are all self attested by the applicant.
STEP 5 – Issuance of CSR RegistrationAfter form CSR 1 is submitted, the RoC examines it thoroughly, and upon being satisfied with the application and issues a unique CSR registration number to the NGO, after which it becomes eligible to receive CSR grants and undertake CSR activities in India.
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List of Documents required for CSR Registration
The following documents are required to be submitted along with Form CSR 1, the application for CSR registration of NGOs:
|A. Basic Documents||B. Additional Documents|
| || |
Frequently Asked Questions
Section 135 of the Companies Act governs the CSR contribution of companies in India.
Following are the permitted activities under CSR for companies:
|1. Providing education|
|2. Promoting gender equality|
|3. Projects related to rural development|
|4. Contribution to PM Cares Fund|
|5. Contribution towards the protection of the environment|
|6. Promotion of healthcare, preventive healthcare and sanitation activities related to COVID-19|
|7. Events related to disaster management, including relief activities|
In pursuance of section 135(7) of the Companies Act and the CSR Rules, the eligible companies have to spend 2% of their average net profits on the CSR activities.
The application for CSR Registration or CSR-1 can be signed by :
- Authorised Director in case of Section 8 Companies
- Trustees of the Trust
- Chairperson / Secretary of the Society
- Any other signatory authorised by the Parliament / State Legislatures
- Certification of Independently practising CA, CS, Cost Accountant
It usually takes 1 week from the date of filing of CSR 1 application for the NGO to obtain the CSR Registration in India.
Sections 12 A and 80 G of the Income Tax Act, 1961, deals with the deductions in taxable income of the assessee. Only NGOs that are registered under Sections 12 A and 80 G of the Income Tax Act, are permitted to receive CSR grants under Section 135 of the Companies Act. This means that CSR grants received by NGOs registered under Sections 12 A and 80 G are deducted from the taxable income of the assessee, or, in other words no income tax is charged on CSR grants received by the NGOs.
All Indian and foreign companies, their holding companies, their subsidiary companies who have a net worth greater than Rs.500 crores, turnover greater than Rs.1000 crores, and net profit greater than Rs.5 crores will have to mandatorily maintain CSR funds in India.
Following are a few benefits of CSR Registration in India:
- Enabled to obtain CSR funds from Corporates
- Building a public image by undertaking CSR activities
- Enhances credibility of NGO
- Entitled to receive deductions under relevant sections of the Income Tax Act
No, unregistered trusts and societies cannot obtain CSR registration or undertake any CSR activities.
|1. Normal Business Activities of Business|
|2. Activities that are undertaken outside India|
|3. Contribution to a Political Party|
|4. Activities benefiting employees of the company|
|5. Activities that give marketing benefit to the company|
|6. Activities that are done due to any statutory obligation.|
The applicant has to provide a contact number and a contact email in the CSR 1 application. An OTP is sent on both of them for the verification of the contact information of the applicant.
NGOs can get registered on the NGO Darpan Platform which contains a repository of all NGOs in India. After the registration, the NGO receives a unique NGO Darpan ID, with which it can avail a number of benefits including
- Getting basic details of all other NGOs in India as registered on the NGO Darpan Portal
- Getting details of government initiatives and schemes meant to benefit NGOs
- Can apply online for grants from various government ministries
- Track application status of grants applied for
Yes, if the NGO applying for CSR registration is a Section 8 company, its Corporate Identification Number or CIN will be required to be filled in the application.
The CSR 1 application is processed in the STP or Straight Through Processing method where no human intervention is required from the beginning to the end of the process.