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). Here’s 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 NGO’s 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.
About the author
K Kanagaraj Antonysamy is a Chartered Accountant with over 40 years of experience, involved in church activities at various levels. He possesses a broad expertise that spans the NPO sector, International Financial Reporting Standards, and Artificial Intelligence. Additionally, he is proficient in reading and editing a few software languages. Kanagaraj delivers lectures and speaks at seminars on various accounting topics both in India and internationally. God has blessed him with a happy family consisting of his wife, son, daughter-in-law, and granddaughter.