Is your NGO planning to raise CSR funds?
Whether you are a Trust, Society or Section 8 company, you must be registered before receiving CSR Contributions.
Section 135 of the Companies Act, 2013 and Rule 4(1) and Rule 4(2) of the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (‘Rules’) mandates all the NGOs who are planning to undertake the CSR activities to register their NGO with Central Government by filing e-form CSR-1 with Ministry of Corporate Affairs.
CSR Registration in India
If your NGO is planning to raise CSR funds in a simple, clear and fully compliant manner, we help you throughout the complete process including checking eligibility as per CSR Rules, verification of incorporation and registration documents, preparation and filing of Form CSR-1 on the MCA portal.
CSR Registration in India helps you to build credibility for your NGO and ensures that your organisation is recognised as a compliant implementing agency for undertaking CSR projects.
CSR Registration in India not only help you to engage with corporate partners for long-term CSR collaborations but also improves transparency for future CSR collaborations.
We ensure to make your NGO “CSR ready” so that you can confidently approach corporates for funding. Our team also offer post registration guidance like key disclosures and documentation required to be maintained, best practices to partner with corporates and most importantly to help avoid common mistakes that can affect future CSR funding.
Advantages of CSR Registration in India
There are several advantages for Trusts, Societies and Section 8 Company that wish to work with corporate donors: -
Legal eligibility to receive CSR funds
In accordance with the Companies Act, 2013, companies must register at MCA portal by filing Form CSR-1 in order to receive CSR contributions.
Increases corporate credibility.
When NGOs register with MCA and hold CSR-1 certificate, it increases corporate contributions and fosters trust amongst the stakeholders.
Simpler corporate due diligence
Holding CSR-1 certificate aids in simplifying due diligence process at the level of corporates where they can expedite their internal approval process by simply verifying your organization on the MCA portal.
Promotes compliance and transparency
CSR Registration in India shows that your NGO adheres to legal standards and upholds appropriate governance procedures. This helps to retain the corporate funding and attracts more corporates through better transparency.
Prevents last-minute rejections and delays
When corporations are prepared to release CSR cash, completing CSR Registration in India ahead of time avoids potential delays.
Creates readiness for future CSR opportunities
Your organisation becomes formally recognised as a CSR implementing agency and is prepared to participate in upcoming CSR programmes and collaborations.
Step-by Step process of CSR Registration in India
Whether you are a Trust, Society or Section 8 Company, the process of CSR Registration in India is completely online, and you need to secure Digital Signature Certificate (DSC). You can obtain it from a certified agency (like emudhra, VSign, Pantasign etc). CSR registration needs certain eligibility check like legal structure, minimum track records and activities and alignment of your objects with CSR related activities.
Fill Form CSR-1
You need to visit MCA portal and fill CSR-1. Professional advice is recommended but if you want to do it your way, here’s how it’s done: -
Navigate to 'MCA Services' > ‘Company e-Filing' > Compliance Services > 'CSR -1'.
Fill the necessary details like nature of entity, registration dates, contact info and verify OTP.
Attach Required Documents
Attach the registration certificates, PAN Card and 12A & 80G approval certificates.
Professional Certification
The e-form is downloaded in zip folder. Extract the e-form from the zip folder. After downloading, professional makes sure that all contents are correct and certify the form. It can be certified from practicing professionals such as CA, CS or CMA.
Upload to the MCA Portal
Once the form is signed by authorised signatory and certifying professional, upload the form at MCA portal and currently there is no fees for CSR-1.
Issue of CSR Registration Certificate
After submission of form on the mca portal CSR registration certificate is issued.
Documents required for CSR Registration in India
Let’s uncover the list of documents required for CSR Registration in India
Registration Certificate of the Entity
Trust Deed for Trust, or
Registration Certificate of Society, or
Certificate of Incorporation for Section 8 Company
Constitutive Documents
Trust Deed or
Memorandum of Association & Rules / Bye-laws for Society or
MOA & AOA for Section 8 Company
PAN: PAN Card for the NGO is mandatory
Details of Directors / Trustees / Office Bearers
Basic details of:
- Directors for Section 8 Company
- Trustees for Trust
- Governing body / Managing committee members (for Society)
12A and 80G Certificates: 12A and 80G certificates under Income Tax Act, 1961 are highly recommended as most companies prefer funding NGOs with these certifications.
Pre-Requisites for CSR Registration in India
- You must be registered as a Section 8 Company, a Registered Public Trust, or a Registered Society.
- You must have valid 12A and 80G registrations under the Income Tax Act, 1961 as issued by Income tax department. The NGO shall make sure of active registrations and not expired or cancelled or withdrawn or under suspension. Secondly, the name, PAN and registered address appearing on the 12A/12AB and 80G certificates must match the NGO’s legal registration records.
- The NGO should have an established track record of at least three years in undertaking similar activities but there (though some exceptions apply for entities established by the government).
Why to choose My Legal Business LLP for CSR Registration?
We handle the complete process of preparing form CSR-1, tracking status and other follow-ups till approval. We don’t just file the form but we ensure your NGO is compliance ready and documentation ready so that you can focus on your social mission.
Get your NGO registered to position it for sustainable funding instead of one-time donations and become officially recognised as a compliant CSR implementing agency.
Frequently Asked Questions (FAQs)
What is the significance of 12A and 80G registration for CSR funding?
Corporate often look for choose 12A and 80G registrations, they are mandatory to get CSR Registration. While 80G permits donors to claim tax deductions, 12A exempts your NGO's income from taxes. NGOs with these certifications are preferred by the majority of businesses since they show legitimacy and appropriate tax compliance.
What is the age limit for NGOs to become eligible for receiving CSR funds?
Most businesses prefer to sponsor NGOs that have been in existence for at least three years, even if there isn't a any legal age limit for NGOs. This history shows consistency, expertise, and the capacity to carry out tasks efficiently. However, eager corporates can also provide CSR funds to newer organizations with compelling concepts and appropriate registrations.
Are individual volunteers or unregistered groups eligible to receive CSR funds?
No, unregistered informal groups or individuals are not eligible to receive CSR grants. CSR monies must be used through registered organizations with the appropriate legal standing, according to the Companies Act, 2013. Before requesting CSR funding from businesses, you must register your organization as a Trust, Society, or Section 8 Company if you're working informally.
What should be objectives of NGO to qualify for CSR funding?
The objectives of your NGO must comply with Schedule VII of the Companies Act of 2013. This includes, eradicating hunger and malnutrition, advancing healthcare, education and skill development, environmental sustainability, rural development, gender equality, heritage protection, disaster relief, military welfare, slum development, technology incubation, and sports promotion.
Can an NGO receive CSR funds from multiple companies?
Absolutely. Your NGO can receive CSR funding from multiple companies simultaneously for different projects or even the same project. The number of corporate donations is unrestricted. In fact, diversifying your funding sources across multiple companies is a good practice for financial sustainability and risk management.
What reporting and compliance obligations do NGOs have after receiving CSR funds?
NGOs must keep proper records of how CSR funds are utilized, produce utilization certificates signed by authorized signatories, submit progress reports to the donor company on a regular basis, have their accounts audited every year, and make sure funds are exclusively used for approved CSR activities. For larger projects, businesses can additionally need impact assessment studies to meet their own CSR compliance standards.
What is Darpan registration and do I need it for CSR funding?
NGOs can freely register on NITI Aayog's Darpan platform to build a database of reliable groups. Many corporations prefer Darpan-registered NGOs because it lends legitimacy, even though it is not required to receive CSR donations.
Is FCRA registration necessary to receive CSR funds from Indian companies?
No, as CSR payments from Indian corporations are regarded as domestic funding, FCRA (Foreign Contribution Regulation Act) registration is not necessary in order to receive them. FCRA registration is only required if you intend to accept foreign funds from foreign businesses or donors.
