As per Rule 4(2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014, a Company could undertake CSR activities through a registered trust or a registered society or a company established under Section 8 of the Companies Act, 2013 (“the Act”), either singly or along with its holding or subsidiary or associate company, or along with any other company or holding or subsidiary or associate company of such other company.
The Ministry of Corporate Affairs (“MCA”) has vide Notification No G.S.R 540 (E) dated 23 May 2016, amended the aforesaid Rule to provide that the Board of a Company may decide to undertake its CSR activities approved by CSR Committee, through:
a) a Company established under Section 8 of Companies Act, 2013 (“the Act”) / registered trust / registered society, established by the Company, either singly or along with any other Company; or
b) a Company established under Section 8 of the Act / registered trust / registered society, established by the Central Government or State Government or any other entity established under the Act of Parliament or a State Legislature
Further, the amendment provides that the Company may undertake CSR activities under Section 8 of the Act or a registered trust or a registered society other than those listed above, provided such company or trust or society has a track record of three years in undertaking similar projects or programs.
To read the Notification, please visit the below link:http://www.mca.gov.in/Ministry/pdf/Notification_CSR_30052016.pdf