CSR 1 Registration

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CSR 1 Registration

In the pursuit of Corporate Governance, Corporate Excellence, and better compliance with the provisions of the Companies Act, 2013 and rules made there under, the Ministry of Corporate Affairs has introduced continuous changes in the way the corporate functions, as well as changes in the role of stakeholders and professionals at large.

One of the most significant changes is the Introduction of E-Form CSR-1, which became mandatory for all Registered Societies, Registered Trusts, Registered Section 8 Companies, and other entities engaged in CSR (Corporate Social Responsibility) activities in India effective from April 1, 2021.

For example: The Tata Group, an Indian conglomerate, engages in a variety of CSR projects, the majority of which focus on community development and poverty alleviation. It has participated in women's empowerment, income generation, rural community development, and other social welfare programmes through self-help groups. The Tata Group supports numerous educational institutions with scholarships and endowments. The organisation also works on health-related projects such as child education, immunisation, and raising AIDS awareness. Economic empowerment through agriculture programmes, environmental protection, sports scholarship provision, and infrastructure development, such as hospitals, research centres, educational institutions, sports academies, and cultural centres, are among the other areas.

MCA eForm CSR-1

The Ministry of Corporate Affairs has made the CSR-1 eForm available on its website and has made filing mandatory for all social organisations seeking CSR funds or CSR implementing agencies.

The Companies (CSR Policy) Amendment Rules, 2021, rule 4, sub-rule 2:

  • From April 1, 2021, every entity covered by sub-rule (1) must register with the Central Government by filing Form CSR-1 with the Registrar electronically.
  • This CSR-1 must be electronically signed and submitted by the entity, and it should be digitally verified by a CA, CS, or CMA in practice.
  • After submitting the form on the portal, a unique CSR registration number will be generated by the system.

What is the purpose of submitting Form CSR 1?

Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended by the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, allow companies to engage in CSR activities either directly or through entities defined under the Companies (Corporate Social Responsibility Policy) Rules, 2014.These companies/entities must file e-Form CSR 1 with the Registrar of Companies to register with the Central Government to engage in any type of CSR activity.

Organizations that are eligible to file the CSR-1 form:

  • A company established under section 8 of the Act, or a registered public trust or society established under sections 12A and 80G of the Income Tax Act; or a company established under section 8 of the Act, or a registered trust or a registered society established by the Central Government or a State Government; or
  • A company formed under Section 8 of the Act, or a registered public trust or a registered society formed under Sections 12AB and 80G of the Income Tax Act, 1961, with at least three years of experience in similar activities; or
  • The NGO's authorised person and a practising professional must digitally sign Form CSR-1.
  • The Professional could be a Chartered Accountant, Company Secretary, or Cost Accountant who works full-time, NGOs cannot file Form CSR-1 on their own; instead, they must contact the professional to file Form CSR-1.

Documents Required for CSR-1 Registration

  • Copy of 12A and 80G Registration
  • PAN Card of a non-profit organisation
  • Phone number and email address for contact information
  • Chairperson's PAN and Digital Signature Certificate
  • Members who have volunteered to help the organisation
  • Certificate of Incorporation for a Section 8 entity
  • Deed of Trust for agency operating as Trust
  • Certificate of Registration for Society
  • NGO Darpan ID, if available
  • DSC of the authorised person signing the form
  • PAN of the authorised person signing the form
  • CSR policy framed for the NGO working
  • Any additional documents as required

Features of CSR-1 Registration

The goal of introducing CSR-1 eForm by MCA is to increase transparency in Corporate Social Responsibilities activities by Society, Trusts, and Section 8 Companies, as well as to establish a corporate house which is needed for a reliable databank for such a noble and social cause.

Due Date – Form CSR-1

The MCA has not set a deadline for submitting Form CSR-1 to them. However from April 1, 2021, all CSR funding will be available only to those entities that have filed Form CSR 1 with the MCA.

Important Points to Remember When Filing Form CSR-1:

  • The CSR-1 form is due to be filed with the ROC on April 1, 2021.
  • A maximum of 5 CIN(s) of such entities can be enclosed in the e-form if the company is formed by a company or group of companies.
  • The Form requires an email address, which is then verified using a One-Time Password (OTP).
  • Only after a successful Pre-scrutiny of the Form can the applicant send a One Time Password.
  • Applicants who fail to complete the task in the allotted time can download a new Form and file it the same day.
  • Before beginning the registration process, double-check the validity of key management officials' DINs or PANs, such as Directors/CEOs/Authorized Representatives.
  • There will be a maximum of 10 rows available for providing the details of the company's key management officials.

Frequently Asked Questions

One of the most significant changes is the Introduction of E-Form CSR-1, which became mandatory for all Registered Societies, Registered Trusts, Registered Section 8 Companies, and other entities engaged in CSR (Corporate Social Responsibility) activities in India effective from April 1, 2021.

CSR refers to a self-regulatory business model based on the COREX concept, which is a globally recognised concept. In addition, Section 135 of the Companies Act of 2013 serves as the governing body for all CSR-related issues.

The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 were issued by the Ministry of Corporate Affairs via Notification No. G.S.R. 40(E) dated January 22, 2021. The same became effective on the 22nd of January 2021, the date of their publication in the Official Gazette.

From April 2014, companies must comply with the provisions of the Companies Act, 2013, which include the formation of a CSR Committee, the formulation of a CSR Policy, and the expenditure of the required amount on CSR activities.

The amount spent on CSR by a company cannot be claimed as a business expense. Any expenditure incurred by an assessee on activities relating to corporate social responsibility as defined in section 135 of the Companies Act, 2013 is not deemed to be an expenditure incurred by the assessee for the business or profession, according to the Finance Act, 2014.

Section 135 net profit is calculated using section 198 of the Companies Act, 2013, which is primarily PROFIT BEFORE TAX (PBT) with other adjustments as specified in CSR Rule 2 (h).

Ministry of Corporate Affairs, recently amended some of the Companies (Corporate Social Responsibility Policy) Rules 2014 to add more transparency and increase the level of accountability of businesses toward environmental and societal improvement. The Companies (Corporate Social Responsibility Policy) Amendment Rules 2021 are the amendments to the said rules.

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