Seamless CSR-1 Registration for NGOs & Section 8 Company
Corporate Social Responsibility or CSR funds are concerned with NGOs that run a business model to upgrade the society or people around. We, at CAAQ, offer the eligible NGOs an opportunity to easily register CSR-1 with the registrar of companies. Our experts let you have a unique CSR registration number for your non-government organisation. This registration service has been started on 1st April 2021.
Here, highly qualified and professional CA, CS, and lawyers are available to support you for this CSR-1 registration. We ensure faster TAT and cost-effective solutions to value our customers. You may contact us at any time for administering your problems.
Eligibility for CSR Registration of Section 8 Company, Public Trust & Society
For funding, the eligible companies must have to invest at least 2% of their average net profit of the last three preceding financial years. Possibly, there are startups that are yet to complete three years. In this case, the average net profit since their commencement would be calculated to spend. Here is a table defining the applicability under Section 135 of the Companies Act, 2013.
| Eligible | Eligibility Criteria |
|---|---|
| Every Company | Net worth > 500 crore |
| Its Holding Company | Turnover > 1000 crore |
| Its Subsidiary Company | Net Profit > 5 crore |
| Foreign Company |
It is mandatory for companies to spend on CSR. Non-compliance is worth to severe penalty, which would be double the amount in default that can be up to INR one crore, as per prescribed provisions. The update of 22 January 2021 states that the company can offer CSR funds only to those NGOs that have been registered with the ROC. For this purpose only, the MCA issues the CSR-1 form. So, you must obtain a unique CSR registration number if you are a non-government organisation.
Permitted Activities from CSR Funds of Companies
As aforesaid, the eligible companies must have to pursue Section 135(7) and the CSR rules, spending at least 2% of the average net profit on social welfare activities. The companies have options. They can undertake these activities by themselves or through an NGO. Here is the roundup of the permitted activities using the CSR funds.
| Dos | Dont's |
|---|---|
| Educational Activities & Events | Normal Business Activities |
| Encouraging gender equality | Activities carried out in foreign |
| Rural Development Programs | Funds to Political Party |
| PM Care Fund | Employees Benefitting Activities |
| Environmental Protection Activities | Marketing Benefitting Practices |
| Healthcare Practices, Events, Training, Fares | Any Statutory Obligation-based Practices |
| Disaster Management-based Events |
Must-to-Register Cases
Eligibility for CSR Grant
There are categories of companies defined for receiving the CSR contribution. However, there are some additional conditions that need to be satisfied by the NGOs. Later on, they have to get the certificate of incorporation from the ROC by filing the CSR-1 form to get a unique CSR registration number.
Eligible Entities
- Section 8 Company
- Registered Public Trust
- Registered Society
| Promoted Company | Volunteer NGOs |
|---|---|
| Registration U/s 12A of Income Tax | Registration U/s 12A of Income Tax |
| Registration U/s 80G of Income Tax | Registration U/s 80G of Income Tax |
| 3-Year Track Record |
Form CSR-1 Filing by Section 8 Company, Public Trust & Society
The eligible entities can be a Section 8 Company, a registered public trust, and a registered society. They have to get themselves registered under Section 12A and 80G of the Income Tax Act also. Subsequently, they must obtain a new registration via the CSR-1 form (for NGOs) from the ROC. It enables them to receive a unique CSR Registration Number. This happening qualifies them for the grant from the CSR funds of the companies.
Checklist of Documents
Documents Required for CSR Funding
Basic Documents
- Trust deed of the entity
- Registration with State Public Trust Act, if any
- Certificate of Incorporation in case of Section 8 Company
- Society Registration certificate in case of Society
- Identity Proof (Passport/Voter ID/Driving License)
- Copy of PAN Card
- Email ID of NGO
Additional Documents
- Certificate u/s 12A issued by the Director of Income Tax (Exemption)
- Certificate u/s 80G issued by the Commissioner of Income Tax (Exemption)
Note: Entities registered u/s 10(23C) of the Income Tax Act, are not entertained with the registration facility via Form CSR-1. They have to seek fresh registration, U/s 12A of the Income Tax Act, 1962.
Certification of CSR
A CSR-1 form is an online form, requiring the digital signature of Class 2 or 3 officers. They can be any of the following professionals. It can be further signed by a CA, CS, or CMA, who is in full-time practice.
The Signatory to CSR-1 Form:
- Any director of section 8 company
- One of the Trustee/ CEO (in case of Registered Public Trust)
- Chairperson/ CEO/ Secretary (in case of Registered Society)
- Authorized Representative (in case of Government Entity)
Professional Certification
Under Section 135 of the Act, the rules there under mandate the verification of the form by the practicing professional such as Chartered Accountant, Company Secretary, Cost, and Management Accountant in full-time practice.
Besides the form, these are some more records that are required to verify for the certification of the three years of track record.
- Audited financials of entity for last three financial years
- Date of registration u/s 12A and u/s 80G
- Form 10B of the entity for the last three financial years
- Note of nature of activities performed by the entity in the earlier years
- Return of income and computation of income for the past three years
- Undertaken CSR projects’ records by the entity
- Assessment orders, if any, to examine the activities accepted by the department