Updated on July 06, 2024 06:09:31 PM
CSR Registration permits a Trust to receive CSR funding from eligible corporate entities to carry out different CSR initiatives. CSR full form is Corporate Social Responsibility which means a system that promotes the responsibility of the corporate world towards the society through which non-profit organizations (NGOs and trusts) are able to obtain financial and other support from the business world.
The aim of bringing together all NGOs through the online portal is to develop an effective CSR spending monitoring system. The registration process for CSR-1 for Trusts is completely online and can be completed by Practicing CMA, CS, or CMA certification.
Read on to learn more about the process of registering your trust for CSR activities and the complete requirements of CSR registration for trusts.
The CSR-1 form is for NGOs and trusts to register on the MCA portal. The form must be filled out by entities (Mostly Non-Governmental Organizations) to improve their chances of receiving donations and CSR funding from businesses that are entitled to give 2% of their net earnings to CSR actions.
The Ministry of Corporate Affairs has made it mandatory to file the CSR Form for trusts to obtain funding from corporations. Businesses and NGOs are brought together under one roof where businesses are able to find the appropriate organization to donate funds, while Non-profit organizations can display their plans in their project reports and receive CSR funding.
A company can take on CSR initiatives independently or through agencies who plan to engage in CSR activities have to declare their on the MCA portal by filing the CSR-1 form online.
Important: To receive funds via foreign funding sources, Trusts require to register for an FCRA certificate in addition to CSR registration.
As per the Companies Act of 2013, it is mandatory for certain corporations to invest 2 percent of their net profits in the financial year in CSR actions. According to the Companies Act, The CSR clause applies to businesses that:
The cost to file an electronic CSR-1 form for Trusts is just ₹2,499, but the total amount could differ based on the validity of the Chairperson's DSC. If the chairperson holds an active DSC and the filing fee will be just ₹299.
If the chairperson isn't able to obtain an approved DSC, the cost would be ₹1,200 (for DSC) + ₹2,499 (Filing Fee) is equivalent to ₹3,699.
| CSR Registration Costs for Trusts | |
|---|---|
| CSR Filing Fees for the filing of a CSR with a Valid DSC | ₹2499 |
| CSR Filing fees without valid DSC | ₹1200(DSC) + ₹2499(Filing) = ₹3699 |
Note: The aforementioned Fees is exclusive of GST.
Here is the list of documents required for CSR-1 registration for Trusts:
To regulate the CSR activities of non-profit organizations and to ensure that the use of CSR funds is actually increasing the standard of living in our nation, the CSR committee has prepared an exhaustive list of tasks that can be carried out with the help of CSR funds that corporate companies provide.
The following CSR actions are permitted for trusts and NGOs in accordance with the Company Act 2013, 2013
CSR registration is beneficial to both charitable trusts who seek CSR funds as well as corporate companies that provide CSR funding.
When public Trusts register for CSR, they have the chance to draw the attention of corporations willing to offer substantial financial assistance to run CSR initiatives. The process of getting corporate donations and funding from businesses is made simpler due to the absence of legal hurdles.
The funds generated through CSR are utilized to support social development, and they affect the quality of life of marginalized and economically depressed people so that they can live healthy and decent lives. CSR is a company-wide effort to assess and take responsibility for business operations on the environment and its impact on social well-being.
Corporate companies who are involved in a cause improve the reputation of the brand among people. It's also a powerful assertion for businesses to demonstrate their values. It aids its employees and the business by contributing to something bigger than the needs of its employees. CSR can also provide a feeling of belonging for employees. It builds bonds among employees and also their loyalty towards the organization.
CSR is a part of the company's efforts to protect the environment and promotes positive social and environmental changes. CSR initiatives are focused on the promotion of education, health, and water, as well as social and environmental empowerment.
Process of CSR-1 registration:
Documentation
Filing on MCA Portal
Inspection of the Form
Approval Letter from MCA
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It only costs Rs 2,499 to file an electronic form CSR-1. However, the amount may be different if the chairperson does not have a valid DSC. The filing fee will only be ₹2499 if the chairperson has a valid DSC.If the chairperson doesn't have an approved DSC, the fee would be ₹1200 for the DSC plus Rs 2,499 for the filing fee, for a total of ₹3,699.
According to the companies act 2013, CSR funds can be utilized for activities specified by the CSR committee. Some of them include the following-
For detailed information on other activities, please refer to the complete list of CSR activities in India.
You need to file a CSR-1 form to get CSR funds from companies. Apart from that, you also need to prepare a project report that includes detailed information about the CSR activity and its impact on society. A good project report attracts good funds.
A CSR form can be filed in about two days. However, if you do not have the project report ready, it may take up to 10-15 days to write an appealing project report that boosts your chances of receiving more and more CSR funds.
A trust must be registered on the MCA's CSR platform to receive contributions from companies. Only those charitable trusts who have registered with the Central Government by submitting form CSR-1 will be eligible for CSR funding.
Yes, a Trust-seeking CSR must be registered under sections 12A and 80G of the Income Tax Act of 1961.
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