MCA Unveils New CSR-1 e-Form to Streamline Corporate Social Responsibility in India

Simplifying CSR Compliance with Enhanced Transparency and Accountability

NEW DELHI (India CSR): The Ministry of Corporate Affairs (MCA) announced a significant update to the Companies (Corporate Social Responsibility Policy) Rules, 2014, through Notification No. G.S.R. 452(E). Effective from July 14, 2025, a revamped CSR-1 e-Form will redefine how agencies register to undertake CSR activities in India. This move aims to bring clarity, curb misuse of funds, and foster trust in corporate social responsibility (CSR) initiatives. For companies, NGOs, and communities, this amendment is a step toward ensuring that CSR funds create meaningful impact while adhering to strict compliance standards.

Why the New CSR-1 e-Form Matters

The updated CSR-1 e-Form is designed to address gaps in the previous system, making the registration process more robust and transparent. Under Section 135 of the Companies Act, 2013, companies meeting specific financial thresholds—such as a net worth of Rs 500 crore, turnover of Rs 1,000 crore, or net profit of ₹5 crore—are mandated to allocate 2% of their average net profits toward CSR activities. The new form ensures that only verified and eligible entities, such as NGOs, Trusts, Societies, or Section 8 Companies, receive these funds.

Key Objectives of the Amendment

• Simplified Registration: The revised form streamlines the process, reducing bureaucratic hurdles for agencies.
• Enhanced Due Diligence: It enables the MCA to verify the legitimacy and track record of agencies.
• Improved Fund Tracking: The system ensures CSR funds are used for their intended purpose, boosting accountability.

This reform reflects India’s commitment to aligning corporate giving with national development goals, such as education, healthcare, and environmental sustainability.

Who Must File the New CSR-1 e-Form?

The updated CSR-1 e-Form is mandatory for entities seeking to implement CSR projects on behalf of companies. Eligible entities include:

• Section 8 Companies: Non-profits established under the Companies Act, 2013, focused on social welfare.
• Registered Public Trusts: Trusts recognized under state or central laws.
• Registered Societies: Societies registered under the Societies Registration Act, 1860.
• Entities Established by Law: Organizations set up under an Act of Parliament or State Legislature.

These entities must complete the registration process before receiving CSR funds, ensuring only compliant organizations participate in CSR initiatives.

What’s New in the CSR-1 e-Form?

The revamped CSR-1 e-Form introduces a structured framework to collect critical information, ensuring transparency and compliance. Key requirements include:

• Basic Information: Entity name, registration number, PAN, address, and email (verified via OTP).
• Entity Type: Specification as a Section 8 Company, Trust, Society, or statutory body.
• Tax Exemption Proof: Valid documentation under Section 10(23C) or 12A with 80G approval of the Income Tax Act.
• Experience Verification: Evidence of at least three years of engagement in similar activities.
• Leadership Details: PAN/DIN and email addresses of Directors, Trustees, CEOs, or authorized representatives.
• Supporting Documents: Registration certificate, PAN card copy, and a board resolution for authorization.
• Digital Declaration: A digitally signed statement by an authorized person (Director, Trustee, or CEO).
• Professional Certification: Verification by a practicing CA, CS, or CMA to confirm the accuracy of submitted details.

This comprehensive data collection ensures that only credible entities handle CSR funds, minimizing risks of mismanagement.

Benefits for Stakeholders

The new CSR-1 e-Form brings tangible benefits for companies, agencies, and communities:

For Companies

• Assurance that funds are channeled to legitimate, registered entities.
• Simplified due diligence, reducing compliance burdens.
• Enhanced reputation through association with transparent CSR initiatives.

For Agencies

• Streamlined registration process, enabling faster onboarding for CSR projects.
• Increased credibility through MCA-verified status.
• Access to a broader pool of corporate partners seeking compliant agencies.

For Communities

• Greater assurance that CSR funds are used effectively for social impact.
• Support for initiatives aligned with India’s developmental priorities, such as rural development and women’s empowerment.

How Agencies Can Prepare

To comply with the new CSR-1 e-Form requirements, agencies should take the following steps:

1. Verify Eligibility: Confirm registration status and tax exemptions under the Income Tax Act.
2. Gather Documentation: Collect PAN, registration certificates, and proof of three years of relevant experience.
3. Authorize Representatives: Pass a board resolution to designate authorized signatories.
4. Engage Professionals: Work with a CA, CS, or CMA for certification of the form.
5. File Promptly: Submit the CSR-1 e-Form before engaging in CSR projects to avoid delays.

Agencies that proactively adapt to these requirements will position themselves as trusted partners for corporate CSR initiatives.

A New Era for CSR in India

The MCA’s amendment to the CSR Policy Rules marks a pivotal moment for corporate social responsibility in India. By introducing the revised CSR-1 e-Form, the government is fostering a culture of accountability and impact. This change not only strengthens the CSR ecosystem but also aligns with India’s broader vision of sustainable development. As companies and agencies adapt to the new system, the focus remains on creating lasting, positive change for communities across the nation.

Addendum: Key Details from the Official MCA Notification

On July 7, 2025, the Ministry of Corporate Affairs published Notification No. G.S.R. 452(E) in the Gazette of India, formalizing the amendments to the Companies (Corporate Social Responsibility Policy) Rules, 2014. Effective from July 14, 2025, the revised CSR-1 e-Form is now mandatory for entities seeking to undertake CSR activities under Section 135 of the Companies Act, 2013. Below are critical details from the notification to further clarify the process and requirements.

Structure of the New CSR-1 e-Form

The updated e-Form CSR-1, as outlined in the notification, is designed to standardize and streamline the registration process for entities. Key fields include:

• Entity Nature: Specifies whether the entity is a Section 8 Company, Registered Public Trust, Registered Society, or an organization established under an Act of Parliament or State Legislature.
• Mandatory Attachments: Entities must submit a copy of their Certificate of Registration and PAN card, ensuring authenticity and traceability.
• Declaration and Verification: A resolution number authorizing the filing must be provided, along with a declaration signed by an authorized representative (e.g., Director, Trustee, or CEO). The form also requires certification by a practicing professional (CA, CS, or CMA).

Implementation Timeline

The notification confirms that the new CSR-1 e-Form takes effect from July 14, 2025. Entities must complete their registration through the MCA portal before engaging in CSR projects to ensure compliance. This timeline underscores the urgency for NGOs, Trusts, and other eligible bodies to prepare their documentation and align with the new requirements promptly.

Enhancing CSR Integrity

The revised form strengthens the MCA’s oversight by mandating detailed disclosures, such as the entity’s tax exemption status and experience in CSR-related activities. This ensures that only credible organizations handle CSR funds, aligning with the government’s goal of maximizing the social impact of corporate contributions.

Next Steps for Compliance

Entities are encouraged to refer to the MCA’s official instruction kit for filing the e-Form CSR-1, available on the MCA portal. Consulting with compliance professionals can further simplify the process, ensuring all required documents and certifications are in place before the deadline.

This amendment reinforces India’s commitment to transparent and impactful CSR practices, fostering trust among companies, implementing agencies, and the communities they serve.

(India CSR)