CSR-1: The First Step to Access Corporate CSR Funding

Corporate Social Responsibility (CSR) is an essential initiative that enables businesses to contribute to social development. In India, companies meeting specific financial criteria are legally required to allocate a percentage of their profits towards CSR activities under the Companies Act, 2013. To ensure proper regulation and transparency, the Ministry of Corporate Affairs (MCA) has mandated that non-profit organizations file Form CSR-1 before receiving CSR funds from corporations. Filing CSR-1 is the first and most crucial step for NGOs, trusts, and societies to access corporate CSR funding. This article explains CSR-1 registration, its importance, eligibility, the filing process, and its benefits. What is CSR-1? CSR-1 is a mandatory registration form introduced by the MCA in April 2021. It ensures that only eligible non-profits and implementing agencies can receive CSR contributions from companies. Filing CSR-1 enhances transparency, accountability, and streamlined compliance in the CSR funding process. Upon successful submission and approval of CSR-1, the organization receives a CSR Registration Number, which is required to access CSR funds. Who Needs to File CSR-1? The following entities must file CSR-1 to be eligible for CSR funding: 1. Section 8 Companies: Non-profit organizations registered under the Companies Act, 2013. 2. Registered Public Trusts: Entities working for social welfare and registered under relevant state or national trust acts. 3. Registered Societies: NGOs registered under the Societies Registration Act, 1860. 4. Entities Established by an Act of Parliament or State Legislature: Organizations created under specific laws for social causes. Benefits of Filing CSR-1 Filing CSR-1 is a significant step for non-profits as it brings numerous advantages: 1. Legitimacy & Credibility • Builds trust among corporate donors. • Establishes compliance with MCA regulations. 2. Access to Corporate CSR Funds • Enables NGOs and implementing agencies to receive CSR contributions. • Helps organizations expand their social impact projects. 3. Transparency & Regulation • Ensures responsible utilization of CSR funds. • Prevents fraudulent entities from misusing corporate contributions. 4. Streamlined Collaboration with Corporates • Simplifies the process of receiving CSR funds from eligible companies. • Strengthens NGO-corporate partnerships for social development. Step-by-Step Process to File CSR-1 To complete CSR-1 registration, follow these steps: 1. Obtain a Digital Signature Certificate (DSC) •The authorized signatory of the NGO must have a valid DSC for electronic submission. 2. Register on the MCA Portal • The NGO must create an account on the Ministry of Corporate Affairs (MCA) portal. 3. Fill Out Form CSR-1 Provide organization details such as: • Name, Registration Number, and PAN • Address & Legal Structure (Trust, Society, Section 8 Company, etc.) • Authorized Signatory Information 4. Attach Necessary Documents • Copy of the NGO’s Registration Certificate • PAN Card of the Organization • DSC of the Authorized Signatory 5. Verification & Certification • The CSR-1 form must be verified and digitally signed by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant. 6. Submission & Approval by MCA • Once submitted, the MCA reviews the application. • If approved, the NGO receives a CSR Registration Number for funding eligibility. Conclusion Filing CSR-1 is the first step for NGOs and non-profits to access corporate CSR funding in India. It ensures compliance with government regulations while building transparency in the CSR ecosystem. By completing the CSR-1 registration process, organizations can strengthen their credibility and establish collaborations with businesses to drive social impact. If your NGO aims to secure corporate funding for social initiatives, registering CSR-1 is an essential requirement to start the journey.