CSR-1 Registration

What is CSR Registration– CSR Registration  is the registration where every NGO is required to be register under CSR Act in Ministry of corporate affairs

CSR (Corporate Social Responsibility) registration, also known as CSR-1 registration, is a mandatory process for NGOs – Trusts, Societies and Section 8 companies, seeking to undertake or receive CSR funding & ensuring transparency and accountability in CSR spending. 

What is CSR (Corporate social responsibility act) – Corporate social responsibility is mandatory compliance by every company where

• Companies have net worth of Rs.500 crore or more.
• Turnover of Rs.1000 crores or more
• Net Profit of Rs.5 cores or more.

Companies having above criteria is mandatory to spend 2% of their average annual profit made    during immediately preceding years on CSR funds for undertaking CSR projects in India.

Benefits of NGO for getting CSR Registration- 

Every NGO Which are registered for CSR would be entitled to get CSR Funds by companies having criteria above. Hence, an NGO shall not be entitled   to receive CSR funds from a company unless they are registered under CSR. It is mandatory for these NGO/companies / organizations to register for CSR with the Registrar of the Companies to register themselves with the Central Government for doing  any kind of CSR activity.

It also means that the companies are not allowed to spend CSR funding through an unregistered NGO. It is also important to note that entities which are registered u/s 10(23(c) of the Income Tax Act are not eligible to register for CSR.

Eligibility of NGO for Registration under CSR Act-

• NGO must be registered under section-8 of companies act or registered under society registration act ,1860 or registered under Trust Act.
• NGO Which has conducted 3 years of social activity.
• NGO Must be registered under section 12A and 80G of Income tax act,1961.