(Corporate Social Responsibility) CSR Registration

CSR Registration in India, helps you to register your entity under MCA.

Connection with communities

Necessary to file CSR-1 form

Ensures environmental sustainability

Simple & Secure Online Process

Get Registration in 7-10 Days

Introduction of CSR Registration

A management concept known as "Corporate Social Responsibility," or CSR, describes how a firm makes a positive difference in the social and environmental well-being of communities and society. CSR is essential to how consumers and other members of a brand's target market view it. Additionally, it might aid in attracting customers and investors who support the CSR objectives the business has established for it.

CSR activities help maintain a kind impact on the environment. It is the responsibility that companies have towards the community and the environment. CSR gives companies a chance to act kindly and show their sincere responsibility to society.

Legal Window provides seamless services for CSR Registration due to our team of dedicated professionals. You may contact us at 072407-51000 or email admin@legalwindow.in for 80G registration and compliance services.

Importance of CSR Registration

The reasons below show why CSR Registration is important:

CSR increases the value of a company's brand by building socially strong relationships with customers.

CSR improves public image by promoting efforts for a better society and increasing their chances of becoming favourable in the eyes of consumers.

CSR helps companies differentiate themselves from the competition when companies are involved in any kind of community.

Benefits of CSR Registration

The benefits of CSR Registration are:

Improves the image of the company- ·        CSR tasks have a positive impact on the image of the company. When you apply CSR principles in your company, it increases your good reputation.

CSR attracts and protects potential workers- Companies that engage in serious CSR activities are particularly well-known. This makes it much easier for your business to bring in potential leads who are looking for a job opportunity.

Good regulatory publications- The role of regulators is to scrutinize the operations of various companies. However, when your business starts doing CSR tasks on a large scale, these regulators will become much less aggressive in the direction of your business.

Attract new financiers- Improve your company's image with CSR programs.

Increases profit- The CSR strategy focuses on energy efficiency techniques, such as waste reuse, which can reduce operating costs while benefiting the atmosphere.

Eligibility for Conducting CSR Activities

Under section 135 of the Companies Act 2013, it is mandatory for every company that has either;

net worth of at least Rs 500 crore or more, or

a turnover of at least Rs 1000 crore or more, or

net profit of at least Rs 5 crore or more

A committee should be established during the previous financial year. This committee is responsible for activities in the field of corporate social responsibility. The process of these activities is regulated by law. Every company mentioned above must comply with the provisions of the Act.

Committee and Policy for CSR

Spending at least 2% of the average net earnings for the last three fiscal years must go into CSR initiatives for all qualified enterprises obliged to have a CSR committee. Additionally, the qualifying business must have a board of directors committee (CSR committee) made up of three or more directors. The CSR Committee is responsible for developing and recommending to the Board of Directors a policy outlining the required actions (CSR Policy); defending the budget allotted for the required activities, and overseeing the CSR policy as it relates to the company. The CSR Committee's recommendations will be taken into consideration by the Board of Directors, who will also support the company's CSR policy.

The form needs to be filed during CSR Registration

It is mandated to file eform CSR-1 for all CSR projects by April 2021. The NGO should register with the central government to undertake CSR activities that are being funded by companies. This registration helps in monitoring CSR spending in the country. As per Section 135 of the Companies Act, 2013, every registered society, Section 8 Company, and registered public trust must need to file Form CSR-1 to undertake CSR activities.

Activities falling under CSR Activities

Activities to achieve its CSR commitments include:
  • Eradication of hunger, poverty, and malnutrition; promotion of health care, including preventive health care and hygiene, and contribution to the Swach Bharat Kosh established by the Central Government to promote hygiene and make safe drinking water available.
  • Support for education, including special education and job skills that enhance professional skills, especially for children, women, the elderly, and people with various disabilities, and projects to improve livelihoods.
  • Promotion of gender equality, empowerment of women, establishment of homes and hostels for women and orphans; establishment of homes for the elderly.
  • Ensuring environmental sustainability, ecological balance, the preservation of flora and fauna, animal welfare, agroforestry, the preservation of natural resources, and the preservation of the quality of the soil, the air, and the water, including contributions to the Clean Ganga Fund established by the Central Government for the rejuvenation of the Ganga River.
  • Protection of the nation's artistic, cultural, and historical legacy, including the restoration of works of art, historical structures, and monuments; creation of public libraries; and encouragement of traditional crafts and arts.
  • Measures to assist veterans of the armed forces, war widows and their dependents, veterans of the Central Armed Police Force (CAPF) and Central Paramilitary Forces (CPMF), including widows.
  • Training to support rural sports, nationally recognized sports, Paralympic sports, and Olympic sports.
  • Donation to the PM CARES Fund, the PM National Humanitarian Fund, or any other fund established by the Central Government for the socio-economic development, relief, and welfare of scheduled caste, tribal, and other underprivileged classes, minorities, and women.
  • Contribution to incubators or initiatives for scientific, technology, engineering, and medical research and development that are supported by the federal government, a state government, or a public sector enterprise.
  • Donations to publicly supported institutions of higher learning, the Indian Institute of Technology (IIT), national laboratories, and autonomous organizations established by the Department of Atomic Energy (DAE), the Institute of Biotechnology (DBT), the Defense Research and Development Organization (DRDO), the Institute of Science and Technology (DST), the Department of Medicines, the Indian Council of Agricultural Research (ICAR), the Indian Council of Medical Research (ICMR), and the Ministry of Ayurveda, Yoga, and Naturopathy
  • Rural development projects.
  • Development of slum area.
  • Disaster management

Why choose Legal Window for CSR Registration?

Legal Window ensures seamless services to the end-user. Our professionals are specialized in legal matters and assist our clients. You might be wondering what we offer to our clients.

In case of any query regarding CSR, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at admin@legalwindow.in.

FAQs on CSR Registration

Are the CSR provisions applicable to a company under Section 8 if it meets the criteria of Section 135(1) of the Act? 

Section 8 companies are also required to comply with CSR provisions.

In which accounting year does compliance with Section 135 of the Act, i.e. corporate social responsibility, apply?

Compliance with CSR provisions under the Companies Act, 2013, i.e. establishment of a CSR committee, formulation of CSR policy, and spending of the required amount on CSR activities, came into effect in April 2014.

Can a company's CSR expenses be claimed as business expenses?

The amount spent by the company on CSR cannot be claimed as a business expense.

What are the tax benefits as part of CSR?

No special tax exemptions have been extended to CSR expenditures as such. The Finance Act 2014 also clarifies that CSR expenditure does not form part of business expenditure. Although no special tax exemption has been extended to expenditures incurred on CSR,

For what reason are impact analyses of CSR initiatives provided?

An impact analysis is used to evaluate the societal impact of a particular CSR activity. Before implementing CSR, organizations are urged to make educated decisions and evaluate the impact of their CSR investment.

Is displaying the company's CSR policy on the company's website mandatory or not?

The board of directors of the firm must approve its CSR policy by Section 135(4) of the Companies Act, considering the CSR committee's recommendations. If the company has a website, it should also be shown online. The details of this policy should be included in the corporate report.

Is the criterion of "average net profit" in Section 135(5) net profit before tax or net profit after tax? 

The calculation of net profit for section 135(5) is as per section 198 of the Companies Act 2013 which is mainly profit before tax (PBT).

How is the CSR committee structured?

If an independent director is present, the CSR Committee must have a minimum of 3 or more directors; however, if the nomination of an independent director is not necessary, the minimum number of directors is 2.

Is the requirement to create a CSR committee mandatory in all cases?

No, a committee does not need to be constituted if the CSR budget is under Rs. 50 lakhs; the board can handle this task on its own.

Can expenses spent on employees exclusively appointed by companies for the implementation of the company's CSR activities be included in the expenses designated for CSR activities?

Salary paid by the companies to regular CSR employees as well as employees rendering their services for CSR will be part of administrative overhead and should not exceed 5% of total CSR expenditure.