Overview
In India, CSR rules introduced in 2013 which mandate’s certain companies to spend 2% of their average net profit earned over the preceding three years on social responsibility initiatives. This aims to encourage businesses to contribute toward social and environmental well-being. Thus, these companies provide funding to NGO’s for completing their Corporate social responsibility (CSR).
As a result, CSR Registration is mandatory for NGO’s to receive funding. CSR Registration is a process through which a NGO file e-form CSR-1 so that they can avail the benefits under the companies act, 2013 and also are able to get funding from corporates.
What is CSR Registration and e-form CSR-1?
The CSR Registration enables a Trust/NGO’s to receive CSR funding from eligible corporate entities for the implementation of various CSR initiatives. CSR Registration signifies a framework that underscores the responsibility of the corporate sector towards society, facilitating non-profit organisations such as NGOs and trusts to secure financial and other forms of support from the business community.
The CSR Registration is done through filing an e-form CSR-1 which is entirely an online proceedure and can be efficiently completed by practitioners such as CA, CS, or CMA additionally, It is also mandatory to verify the e-form CSR-1 by any of these practising professionals.
Why is it important to get CSR Registration?
Corporate Funding Eligibility Companies allocate CSR budgets to support NGOs engaged in charitable activities.
Credibility Boost CSR registration and compliance enhance an NGO's credibility, showing a commitment to transparency and accountability
Legal Recognition CSR Registration as a trust, society, or nonprofit company provides essential legal recognition for contracts, property ownership, and bank accounts.
Tax Benefits CSR Registered NGOs often enjoy tax exemptions, making donations tax-deductible and encouraging financial support.
Grant Access CSR Registration is a prerequisite for NGOs to qualify for grants from government agencies, international organisations, and foundations.
Partnerships and Collaboration CSR Registered NGOs are preferred partners, leading to valuable collaborations and networking opportunities.
Regulatory Compliance NGOs provide companies with a legitimate channel to fulfil CSR obligations mandated by regulations.
Resource Access CSR Registration grants NGOs access to government programs, resources, and technical assistance for effective mission implementation.
Professionalization The CSR registration process establishes governance structures and operational guidelines, fostering a more organised and professional approach.
Long-Term Sustainability CSR Registration contributes to an NGO's long-term sustainability by providing a legal framework for governance, succession planning, and continuity.
Document Requirement for e-form CSR 1 Filing
PAN Card of NGO.
Registration Certificate/Trust deed of NGO.
PAN , Aadhar , Email and Mobile of Authorized Person of society.
Digital Signature Certificate (DSC) of Authorised person
Eligibility Criteria for CSR Registration
1. Companies
- Established under Section 8 of the Companies Act;
- Exempted under specific clauses of Section 10(23C) and approved under Section 80G of the Income Tax Act (1961);
- Established under Section 8, registered under Section 12A, and approved under Section 80G of the Income Tax Act (1961).
2. Public Trusts
- Registered and exempted under specific clauses of Section 10(23C) and approved under Section 80G of the Income Tax Act (1961)
- Registered under Section 12A and approved under Section 80G of the Income Tax Act (1961).
3. Registered Societies
- Exempted under specific clauses of Section 10(23C) and approved under Section 80G of the Income Tax Act (1961)
- Registered under Section 12A and approved under Section 80G of the Income Tax Act (1961).
4. Other Entities
- Established by the Central or State Government under a specific Act of Parliament or State Legislature.