CSR-1 Registration: Legal Requirements and Procedure

CSR (Corporate Social Responsibility) refers to the responsibility of businesses to contribute positively to society. Under the Companies Act 2013, CSR is legally mandated for certain companies to ensure their engagement in activities benefiting social and

In recent years, Corporate Social Responsibility (CSR) has emerged as a powerful tool to foster inclusive growth in India. Companies are now legally bound to contribute a portion of their profits toward CSR activities, creating immense opportunities for NGOs to receive funding and expand their outreach. However, to receive these funds, NGOs must complete a mandatory step known as CSR-1 Registration.

This article is about the legal requirements, step-by-step procedure, and related compliance frameworks such as Section 8 company registration, NITI Aayog Registration, FCRA Registration, and 12A and 80G Registration.

What is CSR? CSR Meaning

Definition and Purpose

CSR (Corporate Social Responsibility) refers to the responsibility of businesses to contribute positively to society. Under the Companies Act 2013, CSR is legally mandated for certain companies to ensure their engagement in activities benefiting social and environmental causes.

CSR Meaning in Practice

In India, CSR means companies are expected to go beyond profit-making and engage in CSR activities such as:

• Promoting education and healthcare

• Environmental sustainability

• Rural development

• Women empowerment

• Skill development

CSR Applicability Under Indian Law

Companies Covered

As per Section 135 of the Companies Act, 2013, CSR applicability is mandatory for companies meeting any of the following criteria:

• Net worth of ₹500 crore or more, or

• Turnover of ₹1,000 crore or more, or

• Net profit of ₹5 crore or more

CSR Spending Requirement

Eligible companies must spend 2% of their average net profits (over the last 3 years) on CSR activities.

Importance of CSR-1 Registration

CSR-1 registration is a declaration form that enables an NGO to legally receive CSR funds from companies. It establishes credibility, accountability, and eligibility in the eyes of both corporates and the Ministry of Corporate Affairs (MCA).

Without CSR-1 registration, NGOs cannot legally accept or participate in corporate CSR partnerships.

Who Needs CSR Registration?

The following entities are required to file CSR-1 before accepting CSR funding:

• Section 8 Companies

• Registered Trusts

• Registered Societies

Each of these must be registered under relevant Indian laws and must fulfill CSR eligibility criteria.

Prerequisites for CSR-1 Filing

Before filing Form CSR-1, an NGO must have:

• Section 8 Company Registration, or Trust/Society registration

• Valid 12A and 80G Registration

• NITI Aayog Registration with a Unique ID

• A valid PAN

• A Digital Signature Certificate (DSC) of an authorized representative

Legal Framework Behind CSR-1 Registration

CSR-1 was introduced via an amendment to the Companies (CSR Policy) Rules, 2021, to standardize and regulate CSR funding. As per these rules:

• CSR-1 is a mandatory electronic form filed through the MCA portal

• NGOs must obtain approval from MCA before receiving any CSR contributions

Step-by-Step CSR-1 Registration Process

• Visit MCA Website: Go to https://www.mca.gov.in

• Download Form CSR-1: From the “Forms & Downloads” section

• Fill in Details:

- Legal name of NGO

- Registration number and date

- PAN and email

- Objectives and activities

• Attach Documents: Upload required supporting documents (see next section)

• Digital Signature: Form must be signed using DSC of Director/Trustee

• Upload Form: Submit through MCA portal

• SRN Generation: Save the Service Request Number for tracking

• Approval: On successful verification, you will receive an acknowledgement and CSR-1 Registration Number

Documents Required for CSR-1 Registration

• PAN Card of the NGO

• Registration Certificate (Section 8, Trust, or Society)

• 12A and 80G Certificates

• NITI Aayog Unique ID

• Resolution authorizing CSR-1 filing

• DSC of the authorized signatory

CSR-1 Registration Fees

Government Fees

• Zero – There is no fee for filing CSR-1 on the MCA portal.

Professional Fees

• Hiring a professional (CA/CS/Legal Advisor) may cost between ₹3,000 to ₹10,000, depending on complexity.

Timeline for CSR-1 Approval

• Form Submission: Takes less than a day

• Verification and Approval: Usually within 7 to 10 working days

• Delays may occur if:

- PAN mismatch

- Document upload issues

- DSC errors

CSR Fund Access After CSR-1 Approval

Once approved, NGOs can:

• Connect with eligible corporates seeking CSR partners

• Apply for CSR grants through proposals

• Join corporate RFPs (Request for Proposals)

• Collaborating on long-term CSR projects

Having valid CSR-1 registration adds your NGO to a national database of eligible CSR recipients, increasing visibility and funding potential.

Role of NITI Aayog Registration in CSR

NITI Aayog registration is a prerequisite for filing CSR-1. It ensures your NGO is listed on the NGO Darpan portal, a centralized government database of verified NGOs.

Benefits:

• Identity verification for CSR donors

• Cross-check by MCA before CSR-1 approval

• Required for grant applications and government tie-ups

12A and 80G Registration Requirement

CSR donors often require that NGOs have:

• Valid 12A Registration (tax exemption for NGO income)

• Valid 80G Registration (tax benefits for donors)

These not only satisfy CSR legal frameworks but also encourage donations by offering income tax deductions to corporate donors.

FCRA Registration for Foreign CSR Contributions

Many multinational companies provide CSR funding in India through local subsidiaries or direct donations. If foreign contributions are involved, NGOs must also have:

• Valid FCRA Registration

• FCRA-linked bank account

• Regular FCRA compliance and returns

NGOs with both FCRA and CSR-1 registrations stand a better chance of receiving global CSR fund.

Compliance After CSR Registration

Once CSR-1 is approved, NGOs must:

• Maintain separate accounts for CSR funds

• Submit annual activity and financial reports

• Sign MoUs with CSR donors

• Maintain transparency and impact measurement

Companies are required to disclose CSR expenditures in their annual reports, so NGOs must provide proper documentation.

Common Mistakes and How to Avoid Them

• Using Personal PAN instead of NGO’s PAN

• Mismatched Registration Numbers or Certificate Dates

• Uploading incorrect documents

• Digital Signature issues

• Lack of NITI Aayog ID

Avoid these by cross-verifying all entries and uploading clear, scanned documents.

Conclusion

CSR-1 registration is a gateway to corporate partnerships, funding, and long-term social impact. For NGOs looking to grow, sustain operations, and amplify change, complying with CSR regulations is essential. Begin with Section 8 company registration, secure your 12A and 80G approvals, get listed on NITI Aayog’s NGO Darpan, and then proceed with CSR-1 registration. By following this legal path and staying compliant, your NGO will be ready to confidently receive and manage CSR funds, forge strong corporate alliances, and drive real-world change.

Frequently Asked Questions (FAQs)

Q1. Can a Trust or Society apply for CSR-1 if it doesn't have 12A and 80G registration?

Ans. No, 12A and 80G registration is mandatory for all entities applying for CSR-1. Without this, the application will be rejected.

Q2. Is it possible to edit the CSR-1 form after submission?

Ans. No, once Form CSR-1 is submitted on the MCA portal, it cannot be edited. Any error requires a new submission or contact with MCA support.

Q3. How can companies verify an NGO’s CSR-1 registration?

Ans. Companies can search and verify CSR-1 registered NGOs on the Ministry of Corporate Affairs (MCA) website using the NGO’s name or CSR-1 number.

Q4. Do I need to renew CSR-1 registration annually?

Ans. No, as of now, CSR-1 does not require annual renewal. However, NGOs must keep other linked registrations (like 12A, 80G, and NITI Aayog) valid and updated.

Q5. Can a for-profit company receive CSR funds?

Ans. No, only non-profit organizations such as Section 8 companies, registered trusts, or societies are eligible to receive CSR contributions after CSR-1 registration.