Corporate Social Responsibility (CSR) is an essential aspect of corporate governance that ensures businesses contribute to social and environmental development. In India, companies that meet specific financial thresholds are required to allocate a portion of their profits towards CSR initiatives. To receive CSR funds from corporations, NGOs and non-profits must complete the CSR-1 Registration process.
CSR-1 Registration is a mandatory requirement for organizations seeking CSR funding from companies under Section 135 of the Companies Act, 2013. This article provides a complete guide to the CSR-1 Registration process, its importance, and its integration with other essential registrations such as LLP Registration, Startup India Registration, IEC Registration, Niti Aayog Registration, and Government e-Marketplace participation.
What is CSR-1 Registration?
CSR-1 Registration is the official process through which non-profit organizations register with the Ministry of Corporate Affairs (MCA) to receive Corporate Social Responsibility (CSR) funds from eligible companies. It ensures that only legitimate and compliant entities can benefit from corporate donations and funding for social development projects.
Who Needs CSR-1 Registration?
Organizations eligible for CSR-1 Registration include:
- Registered NGOs & Non-Profit Organizations
- Section 8 Companies (Non-profit companies)
- Societies & Trusts involved in social welfare
- Entities registered under Niti Aayog’s Darpan Portal
Only organizations registered under CSR-1 can legally receive CSR funds from companies operating under CSR obligations.
Why is CSR-1 Registration Important?
1. Access to CSR Funds: Organizations can receive corporate funding for social projects.
2.Increased Credibility: Registration enhances transparency and trust among donors and stakeholders.
3. Compliance with MCA Rules: Ensures organizations meet the legal requirements to receive corporate donations.
4. Participation in Government Tenders: NGOs can apply for government-supported projects through platforms like Government e-Marketplace (GeM).
5. Global Funding Opportunities: Along with IEC Registration, NGOs involved in international trade or foreign funding can operate legally.
Step-by-Step CSR-1 Registration Process
Step 1: Obtain the Required Registrations
Before applying for CSR-1 Registration, organizations must have:
- NGO Registration (Trust, Society, or Section 8 Company)
- Niti Aayog Registration (DARPAN ID) – Required for government-recognized social organizations
- PAN Card and Bank Account in the organization’s name
Step 2: Prepare CSR-1 Application Form
Organizations must complete Form CSR-1, which is available on the MCA (Ministry of Corporate Affairs) portal. The form requires:
- Details of the organization (Name, Address, PAN, etc.)
- Niti Aayog Registration Number
- Contact details and email ID
- Name and designation of key officials
Step 3: Obtain Digital Signature Certificate (DSC)
The CSR-1 Form must be signed digitally by an authorized signatory using a Digital Signature Certificate (DSC). If the NGO is registered as an LLP, a DSC is already required under LLP Incorporation, making the process easier.
Step 4: Certification by Practicing Professional
The CSR-1 application must be verified and signed by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant before submission.
Step 5: Submit the CSR-1 Form Online
The completed CSR-1 Form is submitted through the MCA portal along with supporting documents and DSC authentication.
Step 6: MCA Approval and CSR-1 Registration Number
Once the MCA verifies the details, the organization receives a CSR Registration Number, making it eligible to receive CSR funds from corporates.
How CSR-1 Registration Supports Other Business Registrations
1. LLP Registration for Social Enterprises
Many startups working in social impact sectors register as Limited Liability Partnerships (LLP) to benefit from legal protection and structured operations. While LLP Registration is essential for business compliance, CSR-1 Registration allows LLPs involved in social projects to receive CSR funding.
2. Startup India Registration for Social Startups
Startups focused on social innovation, education, healthcare, or environmental sustainability can register under Startup India Registration. By integrating CSR-1 Registration, these startups can attract CSR funds to support their projects.
3. IEC Registration for NGOs Engaging in Import-Export
NGOs that engage in international trade—such as importing educational materials or exporting handicrafts—require IEC Registration. This is essential for legally conducting cross-border transactions while receiving CSR funding for global projects.
4. Niti Aayog Registration for Government Collaboration
To receive CSR funds from government-backed projects, organizations must also have Niti Aayog Registration (DARPAN ID). This increases their eligibility for CSR contributions from public sector enterprises (PSEs) and government agencies.
5. Government e-Marketplace (GeM) for CSR Procurement
Organizations registered under CSR-1 can participate in the Government e-Marketplace (GeM) to supply services and goods for CSR initiatives. NGOs and social enterprises can secure government contracts through this platform.
Challenges Without CSR-1 Registration
Organizations that do not obtain CSR-1 Registration face several limitations:
1. Ineligibility for CSR Funding: Companies cannot provide CSR donations to unregistered entities.
2. Limited Corporate Partnerships: Many companies prefer working with registered NGOs for transparency.
3. Regulatory Non-Compliance: Businesses without CSR-1 may face legal issues when receiving corporate donations.
4. Missed Government Opportunities: Unregistered NGOs cannot participate in public sector CSR projects.
To maximize funding potential and credibility, completing CSR-1 Registration is crucial for non-profits and social enterprises.
Conclusion
CSR-1 Registration is an essential step for NGOs, social startups, and non-profits seeking corporate funding for their initiatives. By obtaining CSR-1 certification through the MCA portal, organizations gain access to CSR funds, enhance credibility, and ensure compliance with corporate regulations.
Additionally, integrating CSR-1 Registration with other essential registrations such as LLP Registration, Startup India Registration, IEC Registration, Niti Aayog Registration, and Government e-Marketplace participation can significantly improve an organization’s ability to attract funding and collaborate on large-scale social projects.
For any NGO or startup aiming to make a lasting social impact, completing CSR-1 Registration is a crucial step toward securing sustainable corporate partnerships and expanding operations in the social sector.
