For an NGO in India to be eligible to receive Corporate Social Responsibility (CSR) funds, there is a separate registration requirement under Form CSR-1 with the Ministry of Corporate Affairs (MCA). Hereβs how it works:
CSR-1 Form Registration
Mandatory for NGOs: From April 1, 2021, any NGO seeking to receive CSR funds from companies must file Form CSR-1 with the MCA. This registration is compulsory for all implementing agencies (NGOs) working on CSR projects.
Purpose
CSR-1 registration ensures that only verified NGOs can access CSR funding, promoting transparency and accountability in CSR activities.
Eligibility for CSR-1 Registration
- The NGO must be a Trust, Society, or a Section 8 Company.
- The NGO should have valid registrations under Section 12A (for tax exemption) and Section 80G (for donor tax benefit).
- The NGO must be involved in activities aligned with Schedule VII of the Companies Act.
Procedure for CSR-1 Registration
- Digital Signature Certificate (DSC): The authorized signatory of the NGO (usually a trustee, chairman, or secretary) must have a DSC to file Form CSR-1.
- Filing CSR-1 Form: The form is filed online on the MCA portal, which requires details like the NGOβs registration number, PAN, address, and a brief description of its activities.
- Approval and CSR Registration Number: Upon submission, the form is verified, and if everything is in order, the MCA will issue a CSR Registration Number.
Documents Required
- PAN of the NGO.
- Registration certificates under Section 12A and 80G.
- Details of the authorized signatory with a DSC.
- Other registration documents of the Trust/Society/Section 8 Company.
Once the NGO is registered through CSR-1, it becomes eligible to receive CSR funds from companies that are looking to fulfill their CSR obligations under the Companies Act, 2013.