Corporate Social Responsibility (CSR) is a mandatory obligation for certain companies in India under Section 135 of the Companies Act, 2013. Companies that meet the eligibility criteria are required to spend a portion of their profits on CSR activities, ranging from education and health to environmental sustainability and rural development. For transparency and compliance, these companies must also file their CSR reports online with the Ministry of Corporate Affairs (MCA). This article explains the step-by-step process of how to file CSR online while focusing on the importance of CSR funding.

Understanding CSR Filing and CSR Funding

CSR filing is the process of reporting CSR activities and CSR funding details to the MCA annually. Companies must disclose how much money they have spent on CSR initiatives and submit Form CSR-2, a specialized form introduced by the MCA. This filing ensures accountability, promotes transparency, and helps monitor the use of CSR funding across India.

Eligibility Criteria for CSR Compliance

Before we get into the process of filing CSR online, here’s a quick look at the eligibility criteria for mandatory CSR compliance:

• Companies with a net worth of ₹500 crore or more, or

• Companies with an annual turnover of ₹1,000 crore or more, or

• Companies with a net profit of ₹5 crore or more in any financial year

Such companies must allocate 2% of their average net profits of the last three financial years for CSR activities. This CSR funding must be reported accurately through the prescribed form.

Documents Required to File CSR Online

Before you begin the filing process, keep the following documents ready:

• Board resolution on CSR policy

• CSR committee details

• Activity-wise CSR funding and expenditure data

• Details of implementing agencies (if applicable)

• Financial statements and audit reports

• PAN and registration number of the implementing agency

Having these documents ready will make the filing process faster and more accurate.

Step-by-Step Process to File CSR Online

Filing CSR online involves submitting Form CSR-2 on the MCA21 portal. Here’s a step-by-step breakdown:

Step 1: Log in to the MCA Portal

Visit www.mca.gov.in and log in using your company’s registered credentials. If you don’t have an account, you’ll need to register first.

Step 2: Download Form CSR-2

Navigate to the “MCA Services” tab, then click on “Company Forms Download.” Search for “Form CSR-2” and download the latest version.

Step 3: Fill in the Required Details

You need to provide the following information in Form CSR-2:

• Corporate identity number (CIN)

• Financial year of reporting

• Details of CSR committee members

• Total amount of CSR funding required to be spent

• Amount actually spent

• Activities undertaken under CSR

• Mode of implementation: direct or through agencies

• Reason for unspent amount, if any

Ensure all details are filled accurately, especially CSR funding figures, as discrepancies can lead to legal consequences.

Step 4: Attach Supporting Documents

Attach scanned copies of board resolutions, financial statements, activity reports, and details of agencies if CSR funding was disbursed through a third party.

Step 5: Validate the Form

Use the in-built validator in the form to check for errors. Correct any issues before proceeding.

Step 6: Affix Digital Signature

A valid Digital Signature Certificate (DSC) of an authorized director or company secretary is required. Attach the DSC to authenticate the form.

Step 7: Upload Form to MCA Portal

Go back to the MCA21 portal, click on “Upload e-Forms,” and submit the validated and signed Form CSR-2.

Step 8: Pay the Fees

If any statutory filing fees apply, pay the amount online using net banking or credit/debit card.

Step 9: Acknowledgment

Once successfully uploaded, you will receive an SRN (Service Request Number) and acknowledgment. Keep this number for future reference.

Importance of Timely CSR Filing

Timely and accurate filing ensures the legal compliance of your company. Delays or errors in reporting CSR funding may result in penalties, legal notices, and a loss of goodwill. It also reflects poorly on a company’s commitment to social responsibility.

Key Tips to Ensure Smooth CSR Filing

• Maintain proper records of all CSR funding and expenses.

• Regularly update the board about CSR initiatives.

• Work only with MCA-registered NGOs and implementing agencies.

• Conduct internal audits of CSR funding utilization.

• Appoint a dedicated CSR officer or consultant.

Common Mistakes to Avoid

• Submitting incorrect or incomplete data on CSR funding

• Missing the filing deadline

• Not attaching mandatory documents

• Using an expired Digital Signature Certificate

• Overlooking Form CSR-2 altogether (many companies mistakenly assume it’s not mandatory)

Conclusion

Filing CSR online is a legal obligation that goes beyond paperwork — it reflects a company’s commitment to building a better society. Accurate reporting of CSR funding not only ensures regulatory compliance but also enhances a company’s credibility and trust in the market. With the right preparation, documents, and understanding of the MCA process, CSR filing can be completed smoothly and efficiently.

If your company falls under the mandatory CSR criteria, don’t delay the filing process. Ensure that your CSR funding efforts are properly documented, legally compliant, and socially impactful.