“Unlock CSR funding for your NGO! Learn about MCA Form CSR-1 registration, eligibility criteria, required documents, and the process. Secure your NGO’s place in the National CSR Exchange Portal for potential funding opportunities.”
In India, thousands of NGOs are working for social welfare of society. Mostly NGOs are funded by governing body of NGOs or some external peoples, who want to do social welfare but due to time constraint they are not able to do social welfare activities by their own self. They donate to these nearby NGO, which do social welfare activities on their behalf. But due to limited funds, these NGOs have to restrict their activities to some extent.
In Past, big entrepreneurs like Tata, Birla etc do social welfare activities by their own self but now the Government of India has made it compulsory in Companies Act, 2013, that eligible companies has to spent certain percentage of their profit on social welfare of society in form of Corporate Social Responsibility.
Corporate Social Responsibility (CSR) is an essential component of modern business operations. It allows companies to take responsibility for their impact on society and contribute to sustainable development. The Ministry of Corporate Affairs (MCA) has mandated that eligible companies spend at least 2% of their profits on CSR activities. To receive CSR funding, Non-Governmental Organizations (NGOs) must register themselves with the MCA. These companies have to donate to CSR Registered NGO to spend their CSR Obligation. For selection of CSR Registered NGO these companies has to form CSR Committee which select NGO from CSR Registered NGO list. To become eligible for CSR Funding, the NGO must be registered with MCA in Form CSR-1. This article provides a detailed understanding of the mandatory registration process for NGOs seeking MCA CSR funding.
Why Register with the MCA:
Registering with the MCA is mandatory for NGOs seeking CSR funding from companies. The registration process involves filling out the Form CSR-1 on the MCA website. To be eligible for registration, an NGO must meet certain criteria set by the MCA. The NGO must be registered as a trust, society, or a section 8 company under the Companies Act, 2013. The NGO must have a minimum track record of three years in undertaking similar activities. The registration process helps the MCA to track the utilization of CSR funds and ensures transparency in the allocation of CSR funds. Because NGOs are selected by CSR Committee of Company and they have to File Forms with MCA related to CSR Spending.
Below Type of NGOs are eligible for Form CSR-1 Registration:
- Company established under Section 8, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of Section 10 and approved under Section 80G of the Income Tax Act, 1961
- Company established under Section 8, registered under Section 12A and approved under Section 80G of the Income Tax Act, 1961
- Registered public trust, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of Section 10 and approved under Section 80G of the Income Tax Act,1961
- Registered Public trust, registered under Section 12A and approved under section 80G of the Income Tax Act, 1961
- Registered society, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of Section 10 and approved under Section 80G of the Income Tax Act, 1961
- Registered society, registered under Section 12A and approved under Section 80G of the Income Tax Act, 1961.
- Company established under Section 8 or registered Trust or registered Society established by the Central Government or State Government
- Entity established under an Act of Parliament or State Legislature
Following documents are required for filing Form CSR-1
1. Copy of PAN Card of the NGO
2. Mail ID and Mobile Number
3. Details of Governing Body Members
4. Copy of Registration Certificate, 80G And 12A/12AB Certificate
5. Digital Signature of the Authorised Person with his PAN Number
Now, question arises, we have taken the Form CSR-1 Registration with MCA, from which date we start receiving CSR Funding. Please note that, registration with MCA does not guarantee that you must receive CSR Funding. For receiving CSR Funding you have to contact CSR Eligible companies and submit your application there. If they find your application suitable for CSR Funding then you will receive funding.
To make this process easy, the Government of India has launched a portal Known as National CSR Exchange Portal where you can enroll your NGO and submit your application with CSR Eligible Company. If company is willing to spend their CSR Funding through your NGO then they can contact you.
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Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s personal experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers. The Author “CA. Shiv Kumar Sharma” can be reached at mail –[email protected] and Mobile/Whatsapp –9911303737
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nice guideline. it helped me a lot understand CSR FOR-1 filing