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Company Law

CSR Advisory & Form CSR-2 Filing

CSR advisory for companies crossing the s.135 threshold — policy drafting, committee constitution, Schedule VII activity identification, expenditure accounting, and Form CSR-2 MCA filing.

Starting from Discuss with usTypical timelineCSR Advisory

Companies crossing the s.135 threshold — net worth ₹500 crore, turnover ₹1,000 crore, or net profit ₹5 crore — must spend 2% of average net profits on Schedule VII activities and file Form CSR-2.

What is included
  • Applicability check against the s.135(1) thresholds
  • CSR policy drafting and CSR committee constitution support
  • Schedule VII activity identification and spend planning
  • 2% spend computation from average net profits of the preceding 3 years
  • Form CSR-2 preparation and MCA filing
  • Unspent CSR account guidance under s.135(6)
Documents required
  • Audited financial statements for the last 3 financial years
  • Net worth, turnover, and net profit computation
  • Existing CSR spend details and implementing agencies, if any
  • Board resolution for the CSR policy and committee
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • Section 135 of the Companies Act 2013
  • Schedule VII of the Companies Act 2013
  • Rule 3 and Rule 4 of the Companies (CSR Policy) Rules 2014

Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Applicability

Run the applicability check

We test the company against the s.135(1) thresholds — net worth, turnover, and net profit — for the relevant financial year.

Step 2Computation

Compute the spend

We compute 2% of the average net profits of the preceding three financial years, the base for the CSR obligation.

Step 3Policy

Draft policy and committee

We draft the CSR policy, identify Schedule VII activities, and support the board resolution constituting the CSR committee.

Step 4Spend

Plan and execute the spend

We help you select implementing agencies, register projects (Form CSR-1 where applicable), and track the spend during the year.

Step 5File

File Form CSR-2

We prepare and file the annual CSR report with the MCA and confirm the unspent CSR account position under s.135(6).

AEO summary

A company meeting the s.135 threshold — net worth ₹500 crore, turnover ₹1,000 crore, or net profit ₹5 crore — must spend 2% of its average net profits on Schedule VII activities and file Form CSR-2 annually. We run the policy, spend, and filing.

CSR is an obligation, not a donation

The 2% spend under s.135(5) is a statutory requirement, not an optional donation — the board must adopt a CSR policy, and the spend must be on Schedule VII activities through an eligible structure. The annual report of CSR activities is filed with the MCA, and the unspent amount mechanism under s.135(6) keeps the obligation alive across years.

The practical work is planning: picking Schedule VII activities that fit the company's business, structuring the spend through eligible implementing agencies, and keeping the evidence trail that the report and any scrutiny will require.

  • 2% of average net profits of the preceding 3 years (s.135(5))
  • Spend restricted to Schedule VII activities
  • Unspent CSR transferred to the Unspent CSR Account (s.135(6))

The reporting trail

The CSR obligation ends in a filing, not a handshake: the annual report on CSR activities is filed with the MCA in Form CSR-2, and the spend is scrutinised against the policy the board adopted. A company that spent generously but cannot document the Schedule VII linkage has a compliance problem, not a CSR story.

Our role is to make the documentation part of the spend — each rupee traceable to a policy, an activity, and an implementing agency — so the filing and any future inquiry close cleanly.

  • Form CSR-2 filed annually with the MCA
  • Spend evidence built into the process, not after
  • Policy and committee resolutions in place before spend

Government fees

Fee breakdown

ItemFeeNotes
CSR-2 MCA filing feeAs per MCA scheduleFiling fee follows the Companies (Registration Offices and Fees) Rules 2014.

Timeline

Typical turnaround

Typical timeline usually means a 1–3 weeks turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

There is no standalone government fee; the professional fee covers policy drafting, spend computation, and the CSR-2 filing.

FAQ

Frequently asked questions

Does the CSR obligation apply to my company?
It applies if the company's net worth is ₹500 crore or more, or its turnover is ₹1,000 crore or more, or its net profit is ₹5 crore or more, in any financial year (s.135(1)). Crossing any one threshold triggers the obligation for that year.
How is the 2% spend calculated?
The company must spend at least 2% of the average net profits made during the three immediately preceding financial years (s.135(5)). The net profit base and the treatment of each year follow the explanation to s.135(5) and the CSR Policy Rules.
What happens if we don't spend the full amount?
Under s.135(6), unspent CSR amounts must be transferred to an Unspent Corporate Social Responsibility Account within 30 days of the financial year end, to be spent within three years. Failure to comply attracts the penalty route under s.135(7) — the company and its officers can be penalised.
What should you send us before we start?
Send the audited financial statements for the last three years, the net worth and turnover position, and details of any CSR activity already done. That is enough for us to confirm applicability, compute the spend, and plan the filing.

Canonical reference: https://www.pvtltd.co/services/csr-advisory

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Ready to move this filing forward?

We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.