CSR Registration
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Corporate Social Responsibility (CSR) is a legal obligation for certain companies in India to contribute toward societal welfare. This responsibility is governed by Section 135 of the Companies Act, 2013, which mandates eligible companies to allocate a portion of their profits to CSR activities. CSR Registration is a mandatory process for non-profits, charitable trusts, and Section 8 companies to become eligible for receiving CSR contributions.
K Alok & Associates specializes in providing end-to-end support for CSR registration, ensuring that organizations meet all compliance requirements efficiently and hassle-free.
What is CSR Registration?
CSR Registration is the formal process of registering with the Ministry of Corporate Affairs (MCA) by filing Form CSR-1. This process is mandatory for organizations like NGOs, charitable trusts, and Section 8 companies to receive contributions from companies under their CSR initiatives. The registration ensures that the recipient organizations are credible and capable of utilizing funds responsibly for societal welfare.
Process for CSR Registration
The CSR registration process involves multiple steps. Below is a detailed explanation:
- Eligibility Verification
- Assess whether the NGO, charitable trust, or Section 8 company fulfils the eligibility criteria for receiving CSR funding.
- Ensure that the organization is engaged in permissible CSR activities as per Schedule VII of the Companies Act, 2013.
- Collection and Preparation of Documents
- Collect and organize the required documents, including statutory certificates, details of governing members, and DSC of the authorized signatory.
- Verify the accuracy and completeness of these documents.
- Filing Form CSR-1
- Form CSR-1 is filled and submitted electronically to the MCA through the official portal.
- A Digital Signature Certificate (DSC) of the authorized signatory is used to authenticate the submission.
- MCA Review and Approval
- The MCA reviews the submitted application and supporting documents.
- Upon approval, a unique CSR Registration Number is issued to the organization, enabling it to receive CSR funds.
- Post-Approval Compliance
- Maintain proper records of CSR activities, fund utilization, and reports as per the Companies (CSR Policy) Rules, 2014.
Documents Required for CSR Registration
To ensure a smooth registration process, the following documents are required:
- Certificate of Incorporation
Proof of the organization’s registration as an NGO, trust, or Section 8 company. - Permanent Account Number (PAN)
PAN of the organization is essential for identification and compliance. - Digital Signature Certificate (DSC)
A valid DSC of the authorized signatory is mandatory for filing Form CSR-1. - Details of Governing Body Members
Names, addresses, PAN details, and contact information of the organization’s governing members. - Registration Certificates
Documents such as 12A, 80G, or equivalent approvals for tax exemptions, if applicable. - Trust Deed or Memorandum of Association (MOA)
A copy of the organization’s founding document that defines its objectives and activities.
Time Period for CSR Registration
The CSR registration process usually takes 10–15 working days, subject to:
- Accuracy of the application and documents.
- Timely response to any queries or clarifications raised by the MCA.
- MCA’s workload and internal processing times.
Why is CSR Registration Important?
CSR registration holds significant importance for organizations and companies alike:
- Compliance with Legal Obligations
Companies covered under Section 135 must ensure their contributions are directed to registered entities only. Non-compliance can result in penalties and reputational damage. - Transparency and Accountability
CSR registration ensures that funds are allocated to credible organizations, enhancing trust in the process. - Optimized Social Impact
Registered organizations can execute projects in a structured manner, ensuring effective utilization of funds for maximum societal benefit. - Corporate Credibility and Branding
Companies fulfilling their CSR obligations through registered organizations improve their reputation, demonstrating their commitment to societal welfare.
How K Alok & Associates Helps You
At K Alok & Associates, we provide a comprehensive solution for CSR Registration, allowing you to focus on your mission while we handle the compliance requirements.
- Pre-Assessment and Advisory
- We evaluate your organization’s eligibility and align its activities with CSR compliance requirements.
- Provide advisory services to ensure your objectives meet CSR funding criteria.
- Document Preparation
- Assist in gathering and preparing all required documents.
- Review and validate each document to eliminate errors or delays.
- Filing and Submission
- File Form CSR-1 electronically on your behalf.
- Authenticate the submission with the Digital Signature Certificate (DSC) of the authorized signatory.
- Liaising with Authorities
- Handle any queries or clarifications raised by the MCA during the review process.
- Ensure the application progresses without unnecessary delays.
- Post-Approval Compliance Support
- Provide ongoing assistance with record maintenance, CSR fund utilization reports, and other compliance-related activities.
- Advise on how to align CSR projects with statutory requirements and corporate strategies.
With K Alok & Associates, you can ensure a seamless and efficient CSR registration process, allowing you to focus on creating a positive social impact.
Contact us today to start your CSR journey and make a difference!
Services
Business Incorporation & Compliance
Registration & Certification Services
GST Advisory & Compliance
Income Tax Advisory & Compliance
Accounting and Payroll Services
Audit & Assurance Services
International Tax Services
UAE Business Services
Financial Insights
Union Budget 2025: Direct Tax Comprehensive Overview
Detailed Summary of Recommendations from the 54th GST Council Meeting
Frequently Asked Questions
What is CSR Registration?
CSR Registration is the process through which NGOs, charitable trusts, and Section 8 companies register with the Ministry of Corporate Affairs (MCA) to receive funds from companies under their CSR obligations.
Who is required to register for CSR under Form CSR-1?
Organizations such as NGOs, charitable trusts, and Section 8 companies intending to receive CSR contributions from corporates must register under Form CSR-1.
Why is CSR Registration mandatory?
It ensures that only credible and eligible entities receive CSR funds, promoting transparency and proper utilization of the funds for societal welfare.
Can companies directly undertake CSR activities without involving NGOs?
Yes, eligible companies can directly undertake CSR projects. However, if they wish to collaborate with third-party organizations, those entities must be registered under CSR.
Are all NGOs eligible for CSR funding?
No, only NGOs, charitable trusts, and Section 8 companies registered under Form CSR-1 with the MCA can receive CSR funding.
Which companies are required to comply with CSR obligations?
Companies with:
- A net worth of ₹500 crore or more,
- A turnover of ₹1,000 crore or more, or
- A net profit of ₹5 crore or more,
in the preceding financial year are required to comply with CSR provisions under Section 135 of the Companies Act, 2013.
What kind of projects qualify for CSR funding?
Projects related to poverty alleviation, education, healthcare, environmental sustainability, rural development, gender equality, and disaster relief, among others, qualify as per Schedule VII of the Companies Act.
Is registration under 12A and 80G necessary for CSR funding?
While not mandatory, having 12A and 80G registration makes the organization eligible for tax exemptions and is often preferred by companies for transparency.
Does CSR registration expire?
No, CSR registration under Form CSR-1 does not have an expiration date. However, organizations must comply with ongoing regulatory requirements to maintain their eligibility.
What happens if a company does not meet its CSR obligations?
Non-compliance with CSR obligations can lead to penalties, including fines on the company and its officers as prescribed under the Companies Act, 2013.
How is Form CSR-1 submitted?
Form CSR-1 is filed electronically on the MCA portal using the Digital Signature Certificate (DSC) of the authorized signatory of the organization.
What is the processing time for CSR registration?
The CSR registration process typically takes 10–15 working days, depending on the completeness of the application and the MCA’s workload.
What documents are required for filing Form CSR-1?
- Certificate of Incorporation
- PAN card of the organization
- Trust Deed or MOA
- Governing body member details
- Digital Signature Certificate (DSC) of the authorized signatory
What percentage of profits must companies spend on CSR activities?
Eligible companies are required to spend 2% of their average net profits from the preceding three financial years on CSR activities.
Can CSR funds be utilized for administrative expenses?
Yes, but only up to 5% of the total CSR expenditure can be used for administrative overheads.
What happens if a company spends less than the mandated CSR amount?
The unspent amount must either be transferred to a specified fund under Schedule VII (like PM CARES Fund) or to an ongoing CSR project within six months of the financial year-end.
Can CSR funds be used for political contributions?
No, CSR funds cannot be used for political donations or contributions.