Form CSR-1 Filing for registration to undertake CSR Activities

Posted by Optimizer on April 21st, 2021

When a social organisation seeks funding for Corporate Social Responsibility (CSR) they must be registered with MCA, this requires filing the Form CSR-1. This form registers the entities to undertake the activities of Corporate Social Responsibility. Form CSR-1 is filed by the Companies Act, 2013, under section 135 and Rule 4 (1) and (2) of the Companies (CSR Policy) Rules of 2014 as amended by the Companies (CSR Policy) Amendment Rules, 2021.

Responsibility of the Company's Board of Directors:

As mentioned in the Companies (CSR Policy) Amendment Rules, 2021, Rule 4 (1), the Board is bestowed upon with responsibility to invigilate. The Board should ensure, that any CSR activities are either undertaken by the Company itself or by

a) a company which is established under section 8 of the Companies Act, or a registered society or a registered public trust which is registered under section 12A and 80G of Income Tax, 1961 (43 of 1961), established either as a single entity or pairing with some other company, or

b) a company which is established under section8 of the Companies Act, or a registered society or a registered trust, established by the State Government or the Central Government, or

c) any entity which a State Legislature or an Act of Parliament has established, or

d) a company which is established under section 8 of the Companies Act, or a registered society or a registered public trust which is registered under section 12 A and 80 G of Income Tax, 1961 and also possess an established track record of a minimum of three years regarding the undertaking of similar activities.

Compulsory Registration For All The Entities Which Are Covered Under The Sub-rule (1)

According to sub-rule 2 of Rule 4, in the Companies (CSR Policy) Amendment Rules, 2021,

a) all those entities, which are covered under the sub-rule (1), and intends to undertake activities of CSR should register themselves with the Central Government by electronically filing the CSR-1 form with the Registrar, w.e.f the very 1st day of April 2021.

This rule is supposed to be followed provided the fact that the mentioned sub-rule should not affect any CSR programmes or projects which were approved before 1st April 2021.

b) the entity should electronically submit the signed CSR-1 form which the form should go through verification by a practising chartered accountant or a practising company secretary or a practising cost accountant.

c) an automatic generation of a unique CSR registration number would arise by the system when the CSR-1 form is submitted.

Points to be Noted while Filing the CSR-1 Form:

The entity or organisation should follow few points very importantly while filing the form CSR-1. The points are as follows –

1. The registrar of companies must file the CSR-1 form, effective from day 1 of April 2021.

2. A maximum of 5 CIN(s) could be provided if any company or a group of companies established an entity.

3. The entity must provide an email id. This id would be verified by sending a one time password (OTP) in it.

4. After the pre scrutiny of the form is done successfully, the facility of sending OTP would be enabled.

5. Maximum 10 attempts can be made in sending OTP to the email id, which comes with a validity span of 30 minutes, against one form.

6. If more chances are required, one can avail of that by downloading a fresh form on the very same day or try the same the next day.

7. While filling up the details of the entity's Directors/ Chairman/ CEO/ Board of Trustees/ Secretary/ Authorised Representatives, the validity of PAN or DIN must be ensured and also its association with the entity.

8. For filling up the details of the entity's Directors/ Chairman/ CEO/ Board of Trustees/ Secretary/ Authorised Representatives, 10 rows would be available in maximum for that.

9. Following mandatory attachments are supposed to be made with copies of:

• the entity's Certificate of Registration, and
• the entity's PAN

10. It should be ensured that the form submitted must possess digital signatures by

• A qualified Director when an under section 8 Company is in question (Disqualified Director is not allowed for signing the form)
• For Registered Public Trust one of its CEO/ Trustee should sign
• For Registered Society, the signature of its Chairperson/ Secretary/ CEO is needed
• For an entity, which is established under the State Legislature or an Act of Parliament, the signature of an Authorised Representative is required.

11. The electronic form of CSR-1 must bear the digital signature of a Chartered Accountant or Company Secretary or Cost Accountant throughout the practice.

12. For better protection and security, the form would be processed through the STP mode.

Immunity Certificate and Email:

After the Form is successfully processed, an acknowledgement of its processing would be sent to the user through email to the entity's email address. After that, an approval letter with a digital signature along with the CSR Registration number would be sent to the email address of the entity as provided in the form and as well as to the FO User. The CSR Registration number comes with the format CSRXXXXXXXX, where the X depicts the unique sequential number, which is generated by the system.

The List Of Documents That Could Be Obtained Are As Follows:

The following documents go through verification by the practising professional after they are obtained. The documents are—

• Trust deed of the entity.
• For a society, the Society Registration Certificate.
• For a Company under section 8, the Certificate of Incorporation.
• Registration with State Public Trust Act, if there is any.
• Valid Certificate under section 80G which is issued by the Commissioner of Income Tax (Exemption).
• Valid Certified under section 12A which is issued by the Director of Income Tax (Exemption).

Important Points To Be Noted Concerning Certification Of Form CSR-1

According to the Certificate provided by the Practicing Professional, the following points should be duly noted--

• An engagement letter is supposed to be obtained by the Practicing Professional regarding the CSR-1 Form, from the entity.
• The documents along with the attachments made must be verified from the certified/ original records which are maintained by the applicant/ Company before the digital signature is done for the certification of the CSR-1 Form.
• It should be ensured that the records have been prepared properly and signed by the authorised representatives/ the required officers of the entity. Not only this, the records must be preserved in order.
• Ensuring every required attachment is attached to the CSR-1 Form completely and in a legible manner is required.
• For any kind of wrong certification, the Practicing Professional is supposed to be held liable for these actions under section 448 of the Companies Act, 2013.

Company Bio:

The Prakash K Prakash is a Chartered Accountants firm registered under Chartered Accountant Act, 1949. This firm is dotted in New Delhi, offering their services since 1977. Along with a host of other services, like Tax Consultancy, Accounting and Auditing Services, Financial and Corporate Advisory, and other services, they render Company Law Services as well. This firm caters to all the requirements of the clients that help them keep up with the changing scenario.

This firm is an alliance of experienced and professionally qualified persons. They try to optimize the benefits and add value to their clients. They also stay ahead in this vibrantly changing economy by providing quality services with consistency and promptness.

This firm on the present day is specialised in services regarding Company Laws to its esteemed clients. The team of PKP Consults possess complete knowledge regarding the Companies Act and thereafter capable of resolving any issues in this regard.

The views expressed above are solely for information purpose and it does not constitute any professional advice.

You can also reach out PKP Consult at +91-11-23388753 or pgupta@pkpconsult.com