All you need to know about Form CSR 1- Know how to file Form CSR 1 online

Non Profit Organization or NGOs who are undertaking or are willing to undertake CSR activities on behalf of the companies will have to get itself registered with MCA by filing Form CSR 1 online on the MCA portal. The objective of this registration is to ensure the CSR activities conducted and CSR Funds acquired by the NGOs in the country are monitored effectively. The Government of India made CSR registration mandatory for NGOs with effect from April, 2021. In this article, we will discuss filing procedure of Form CSR-1 with the corresponding provisions of Companies Act, 2013.

What is CSR Activities and CSR Funding?

Form CSR 1 is a mandatory registration form for getting CSR funding by implementing agencies from the corporates. The Form CSR 1 is named as form for “Registration of Entities for undertaking CSR Activities.” The Form CSR 1 is divided in two parts:

1. The first part consists of the information about the entity that intends to undertake CSR Activities.
2. While the second part of Form CSR 1 is a certification by a practicing professional.

Law governing Form CSR 1

E-Form CSR-1 is required to be filed under Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014.

Eligibility for NGOs to receive CSR Funds

 An NGO shall be eligible to receive CSR funds from a company only if it is –

• A section 8 company, or
• A registered public trust, or
• A registered society

That is registered under Section 12AB and Section 80G of the Income Tax and have at least 3 years of undertaking charitable activities.

Suggested Read: All you need to know about Section 12AB and Section 80G Registration

Important Note: CSR spending through an unregistered Non Profit Organization is not eligible for counting towards CSR activities.

Conditions for filing Form CSR 1

• Form CSR 1 can be filed only when an NGO has a valid registration under Section 12AB and Section 80G of the Income Tax Act on the day of filing the form CSR 1 Online.- Get your NGO Registered under Section 12AB and Section 80G With Ebizfiling.
• Form CSR 1 shall be digitally signed by the Director in case of Section 8 Company, Trustee in case of a Trust and Chairperson in case of Society.
• Form CSR 1 shall also be verified and certified either by a practicing Chartered Accountant or a Practicing Company Secretary or a practicing Cost Accountant.
• Upon submission of the Form CSR 1 on the MCA portal, a unique CSR registration Number shall be generated by the system automatically and the same will be sent to the registered mail id along with the digitally signed approval letter.

Process for filing form CSR 1 online

Form CSR 1 can be filed online on the MCA portal:

Step 1: One needs to login to MCA Portal and download the Form CSR 1

Step 2: Form CSR-1 will be available in fillable PDF form.

Step 3: The Form CSR-1 shall be digitally signed by:

• In case of Section 8 Company: any director who is not disqualified under provisions of Companies Act, 2013
• In case of Registered Public Trust: One of the Trustee/ CEO
• In case of a Registered Society: Chairman/ CEO/ Secretary
• In case of an entity established under an Act of Parliament or State Legislature: Authorized representative on their behalf

Step 4: It shall also be ensured that the Form is digitally verified by a Chartered Accountant/ Company Secretary/ Cost Accountant in full time practice.

Step 5: Once signed, the next step would be to upload documents.

Step 6: Upon uploading the documents and successful submission, an SRN will be Generated. This SRN shall be used for the future correspondence with MCA.

Step 7: Once successful submission, a challan with the details of the fees paid by the applicant will be generated.

Step 8: At last, a CSR Registration number will be generated automatically and an approval letter will be sent to the official mail of the company.

Documents Required for Filing CSR-1

• Copy of the registration certificate of the NGO
• Copy of the PAN of the NGO with Form CSR-1
• Copy of PAN Card of the entity
• Mail ID of both entity and the authorized person signing the document
• DIN/PAN and Digital Signature of the Director, Trustee, Secretary, etc. of the organization
• Copy of the Resolution authorizing the person by the entity with Resolution number and date of the resolution

Conclusion

Hence, an NGO shall be allowed to receive CSR funds from a company only if it is registered under CSR by filing form CSR 1. It is mandatory for these companies / entities to file e-Form CSR 1 with the Registrar of the Companies to register themselves with the Central Government for undertaking any kind of CSR activity. It also means that the companies cannot spend CSR funding through an unregistered NGO. It is also important to note that entities registered u/s 10(23(c) of the Income Tax Act are not eligible to file Form CSR-1.