Everything You Need to Know About CSR-1 Registration for NGOs

Description

Corporate Social Responsibility (CSR) in India has evolved into a powerful movement that connects businesses with meaningful social initiatives. To ensure that CSR funds reach genuine and compliant non-profit organizations, the Ministry of Corporate Affairs (MCA) introduced Form CSR-1. If you're an NGO seeking to tap into corporate CSR contributions, understanding and registering through CSR-1 is your gateway to that potential.

CSR-1, introduced in 2021, is more than just another bureaucratic form—it's the official entry point for NGOs to become eligible recipients of corporate CSR funding. For companies to allocate their CSR budgets to NGOs, the latter must have an approved CSR-1 registration. Without this, they’re invisible in the eyes of corporate donors. So, if you're running an NGO and aim to access the vast pool of CSR funds, this article will walk you through everything—step by step.

2. Understanding CSR-1
CSR-1 is a mandatory registration form that all non-governmental organizations (NGOs), trusts, societies, and Section 8 companies must fill out if they want to receive CSR funds from companies. Governed under the Companies Act, 2013 (Section 135) and the Companies (CSR Policy) Rules, this registration ensures that only vetted and credible NGOs benefit from CSR allocations.

The form is filed electronically with the MCA and serves as a declaration that the NGO meets all necessary requirements to receive CSR funds. Once approved, the organization gets a Unique CSR Registration Number—its official stamp of approval in the corporate philanthropy ecosystem.

The underlying purpose of CSR-1 is to bring uniformity, traceability, and legitimacy to the CSR funding process. It helps corporates identify compliant NGOs and ensures that social investments are made responsibly.

3. Eligibility Criteria for CSR-1 Registration
Not every NGO can register for CSR-1. The MCA has clearly defined criteria that organizations must meet before applying. Understanding these is crucial before you even begin the registration process.

Types of eligible entities:
Section 8 Companies – Not-for-profit companies registered under the Companies Act.

Registered Trusts – Both public and private trusts involved in charitable activities.

Registered Societies – Societies established under the Societies Registration Act, 1860 or equivalent state acts.

Basic requirements include:
Valid PAN Card for the organization.

Registration under 12A and 80G of the Income Tax Act (for tax exemption).

Minimum three years of existence – Newer NGOs must wait until they complete this period.

Valid Digital Signature Certificate (DSC) – Required for authorized signatories to sign the form digitally.

DIN/PAN of authorized person – Director Identification Number or PAN of the person signing the application.

These eligibility conditions ensure that only experienced and compliant organizations benefit from CSR allocations, thereby reducing the risks associated with funding.

4. Importance of CSR-1 Registration for NGOs
So why should an NGO go through the effort of CSR-1 registration? Because the benefits far outweigh the administrative hassle.

1. Access to CSR funds:
Companies with a net worth of ₹500 crore or more, turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more are required to spend 2% of their average net profits on CSR activities. That’s billions of rupees annually—accessible only to NGOs registered via CSR-1.

2. Increased credibility:
An approved CSR-1 form acts as a badge of authenticity. It assures corporates that your NGO is government-recognized and compliant. This alone can increase your chances of being shortlisted for CSR grants.

3. Legal compliance:
Without CSR-1 registration, any CSR fund transferred to an NGO can be deemed non-compliant. This makes corporates cautious and less willing to collaborate with non-registered organizations. Getting registered ensures you're legally aligned and fundable.

4. Transparent governance:
CSR-1 pushes NGOs to adopt higher governance standards. When you're preparing documents and financials for submission, your internal operations naturally become more transparent and organized.

For more info : https://www.psrcompliance.com/csr-1-registration