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In this article we will discuss about the new procedure for registration of entities for undertaking CSR Activities, with effect from 1st April 2021 every entity undertaking CSR Activities must register with MCA by filing form CSR-1.
In accordance with the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, company can undertake CSR activities either itself or through entities defined under Rule 4 sub rule (1).
These companies/entities are required to mandatorily register themselves with the central government for undertaking any CSR activity by filing the e-form CSR-1 with the Registrar.
What is Corporate Social Responsibility (CSR)?
Corporate social responsibility refers to a concept where the company realises the importance of its existence in the society and environment and thus decides to contribute voluntarily to a better society and healthier environment. A concept where the company tries to integrate its stakeholders needs along with the societal needs.
Importance of CSR
- It helps to enhance the public image.
- It increases media coverage and thus helps to bring the organization into limelight.
- It enhances brand value as a CSR compliant organization is viewed as reliant company in the eyes of customers.
- It protects company from competition in the market.
Introduction to CSR-1 Form
This form is required to be filed in accordance with section 135 of the Companies Act, 2013 and rule 4 (1) and (2) of the companies CSRP rules 2014 as there and amended from time to time.
This form is also known as form for “Registration of entities for undertaking CSR activities”. The aim of this form is to monitor CSR expenditure by the organizations in the country. It is to be signed and submitted electronically and verified by the authorised personnel. All entities that undertake CSR activities are required to file this form on MCA portal.
Date of enforcement of filing CSR-1
This provision came into enforcement from 1st April 2021. Its effect is not retrospective meaning all those programs that have been implemented before this date will remain unaffected and unaltered.
Entities eligible to file CSR-1
Any social organization that is interested in seeking funding for CSR purpose then you are mandatorily required to get registered with MCA by filing form CSR-1.
Following list of entities are liable to file this form-
- Section 8 company, public trust and society registered under section 12A and section 80G of Income Tax Act 1961.
- Having an established track record of atleast 3 years in undertaking similar activities.
- Established by the company, either singly or along with any other company.
- Section 8 company, trust and society established by CG or SG.
- Entity established under an act of parliament or State legislature.
Documents required for filing form CSR-1
- Copy of PAN card of entity
- E-Mail address and registered mobile number
- Copy of Registration certificate’s
- Details of all members of the governing body
- PAN number and digital signature of the authorised person
Attachments required for filing form CSR-1
- CSR policy of the company
- CSR Report of the company
- Sustainability Report of the company
- Details of subsidiary included in Part-B
- Details of any other entity included in Part-B
- Any other information that can be asked for or considered essential if any.
Persons entitled to certify Form CSR-1
- CA
- CS
- Or a CMA in practice.
How to download Form CSR-1 from the MCA website?
You can download this form from the MCA website in the following manner:
- Visit the MCA portal- http://www.mca.gov.in/
- Click on forms and downloads on the top
- Scroll down page until you get to Incorporation services. Or else press Ctrl+F and write CSR and hit enter. You will reach the desired place
- You can download the form with or without instruction. It will be downloaded in zip file format. Open it.
E-mail and Immunity Certificate
When the form is successfully submitted and processed, an acknowledgment regarding the same shall be mailed to the registered Mail ID of the user. Thereafter, a digitally signed approval letter along with CSR Registration number in the Format CSRXXXXXXXX where X stands for system generated unique sequential number will be sent to the FO User as well as to the email ID of the entity as entered in the form.
When is CSR registration number generated?
Upon submission of the form a unique CSR registration number shall be automatically generated by the system.
Requirements w.r.t. filing form CSR-1
- This form is required to be filed to Registration of Companies w.e.f 1 April 2021.
- Maximum 5 CIN(s) of companies can be provided in the form if the organization is established by company or group of company.
- E-mail id of the entity shall be entered which shall be verified with an OTP valid for 30 minutes and maximum of 10 times a day. If it exceeds this limit then a new form can be downloaded on the same day or try next day.
- The facility to obtain OTP shall be applicable only after the form has been pre scrutinized.
- Make sure the entries with regard to PAN, DIN of the authorities are reliable and valid.
- Ensure that the form is digitally signed by the respective authorised signatory.
- The form shall be processed in STP Mode.
- Maximum 10 rows are available for entering the details of Directors/ Board of trustees/ CEO/ Secretary/Authorized Representative of entity.
- Mandatory attachments-
- Copy of registration certificate of entity.
- Copy of PAN of entity.
Due Date for filing CSR-1
There is no due date for filing CSR 1. The above mentioned entities have to file this form before obtaining CSR funding.
Certification of Form CSR-1
According to the certificate by practicing professional-
- The practicing professional is required to obtain a letter of engagement for the certification of the form from the entity;
- The documents (including attachment(s) must be verified from the original/certified records maintained by the company/applicant before affixation of the digital signature certifying the form;
- Ensure that the records are appropriately prepared, signed by the required officers/authorized representatives of the entity, and are in order;
- Ensure that all required attachments are entirely and legibly attached to the form; and
- The practicing professional is liable for action under Section 448 of the Companies Act 2013 in case of wrong certification.
Conclusion
Thus we can conclude that in case of any CSR related issues section 135 of the Companies Act regulates it and give a wider understanding of the same. This form is now applicable on all eligible entities from 1st April 2021 on MCA website and thus can be filed electronically which can be signed digitally by the respective authorities and professional.
