Registration of CSR Agencies

Introduction

Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 enables eligible companies to contribute towards social and developmental initiatives. To ensure transparency and accountability in the utilization of CSR funds, the Ministry of Corporate Affairs (MCA) introduced mandatory registration of CSR implementing agencies through e-Form CSR-1.

In accordance with Rule 4(1) and Rule 4(2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 , every eligible implementing agency intending to undertake CSR activities on behalf of a company is required to register with the Central Government by filing Form CSR-1 before receiving CSR funds.

Upon successful registration, the MCA issues a unique CSR Registration Number, which is mandatory for receiving CSR contributions from companies.

Who is Eligible for CSR-1 Registration?

As per Rule 4(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014, the following entities are eligible to register as CSR implementing agencies:

1. A Section 8 Company incorporated under the Companies Act, 2013 and engaged in charitable or social activities.
2. A Registered Public Trust.
3. A Registered Society registered under the Societies Registration Act, 1860 or any other applicable law.
4. A Trust, Society or Section 8 Company established by the Central Government or any State Government.
5. An entity established under an Act of Parliament or a State Legislature.

Further, where the implementing agency is not established by the Central Government or State Government, it must have an established track record of at least three years in undertaking similar charitable activities.

Conditions for Registration

The implementing agency should satisfy the following conditions:

• The entity should be legally registered.
• Permanent Account Number (PAN) of the entity should be available.
• The proposed activities should fall within the permissible CSR activities specified under Schedule VII of the Companies Act, 2013 .
• Registration details should be consistent across all supporting documents.
• A valid email address and mobile number should be available for OTP verification.

Documents Required for CSR-1 Registration

Common Documents

• PAN Card of the entity.
• Valid email address and mobile number.
• Registration/Incorporation Certificate.
• Details of Directors, Trustees or Governing Body Members.
• Digital Signature Certificate (DSC) of the authorised signatory.
• PAN and DIN (where applicable) of Directors/Trustees.

Additional Documents

For Trust

• Trust Deed.
• Registration Certificate.
• PAN Card of the Trust.

For Society

• Society Registration Certificate.
• Memorandum of Association (MOA).
• Rules & Regulations/Bye-laws.
• PAN Card of the Society.

For Section 8 Company

• Certificate of Incorporation.
• Memorandum of Association (MOA).
• Articles of Association (AOA).
• PAN Card of the Company.

CSR Registration Number

Upon successful filing and approval of Form CSR-1, the MCA generates a unique registration number in the following format:

CSRXXXXXXXX

The CSR Registration Number is mandatory for an implementing agency to receive CSR funds from companies.

Penalties and Consequences

For the Implementing Agency

The Companies Act, 2013 does not prescribe a separate monetary penalty specifically for failure to obtain CSR-1 registration.

However:

• An entity without a valid CSR Registration Number cannot act as an implementing agency for CSR projects undertaken by companies under Section 135.
• Companies are prohibited from routing CSR expenditure through an unregistered implementing agency where CSR-1 registration is mandatory.

For the Company

If a company undertakes CSR expenditure through an ineligible or unregistered implementing agency, such expenditure may not be regarded as valid CSR expenditure under Section 135 read with Rule 4 of the CSR Rules.

Further, Section 135(7) of the Companies Act, 2013 provides penalties where a company fails to comply with its CSR obligations, including failure to transfer unspent CSR amounts as required under the Act:

• Company: Penalty of twice the amount required to be transferred to the Fund specified in Schedule VII or the Unspent CSR Account, as applicable, or ₹1 crore, whichever is less.
• Every officer in default: Penalty of one-tenth of the amount required to be transferred or ₹2 lakh, whichever is less.

Accordingly, companies should ensure that CSR funds are deployed only through eligible and duly registered implementing agencies to remain compliant with the provisions of the Companies Act, 2013 and the CSR Rules.