Non-Governmental Organization Registration in Pakistan

NGOs, or "non-governmental organizations", are organizations that are not run by the government but are instead established for the primary purpose of ensuring community work and social welfare. In Pakistan alone, there are many national and international NGOs that have been registered in order to begin their operations. We've seen a considerable amount of growth in the non-profit sector recently as the Pakistani government has begun to learn more about the importance and value of having NGOs present in order to help with the development and improve the quality of life for its citizens.

NGOs in Pakistan have been gaining attention in recent years due to their involvement in relief efforts for various crises and natural disasters. However, many of these NGOs are informal and unregistered with any government agency.

Registering your NGO in Pakistan is a simple process that can be completed in a few easy steps. This article provides guidelines on how to register an NGO in Pakistan and what the various factors influencing this process are. If you are looking to participate in the welfare of the society or help a group of people affected by some crises or disaster, then you should register your NGO in Pakistan. Registering your NGO will allow you to work more efficiently and effectively towards your goals, as well as provide you with certain legal protections.

LAWS AND REGULATIONS TO REGISTER NGO IN PAKISTAN

The laws regulating the business and framework of NGO and its registration is different from entity that works for profit in Pakistan. NGO can be registered under different’s law and can function in consonance to the different set of provisions provided for in those laws. Different laws under which NGO can be registered in Pakistan are as follow:

In Pakistan, the laws regulating businesses and NGOs differ from those regulating entities that work for profit. NGOs can be registered under different laws and can operate according to the different sets of provisions laid out in those laws. Some of the different laws under which NGOs can be registered in Pakistan are as follows:

-The Companies Act, 2017

-The Voluntary Social Welfare Agencies (Registration & Control) Ordinance, 1961

-The Societies Registration Act, 1860

-The Trust Act, 1882

COMPANY NOT FOR PROFIT UNDER COMPANIES ACT, 2017:

This type of NGO can be registered as a company under the Companies Act, 2017. It will have to comply with the provisions laid out in this act, which include having at least three members and having objects that are not for profit. A non-profit Limited Company can be registered under section 42 of the Companies Act, 2017 with the Security Exchange Commission of Pakistan. A non-profit association under the umbrella of Limited Company can be either an organization formed for the purpose of serving the public or for mutual benefit of certain group or class of people.

DOCUMENTS REQUIRED FOR NGO REGISTRATION UNDER THE COMPANY ACT, 2017

In order to register your company, you will need to submit an application for the availability of the name, a bank challan for the registration fee of Rs. 25,000, and a list of promoters with their detailed particulars. The promoters must also provide scanned copies of their CNICs and an undertaking for the payment of initial donations. There must be at least three promoters, who must have the sufficient skills, expertise and resources to accomplish the objectives of the company. Additionally, you will need to provide a mission statement and a statement of work detailing the activities that will be carried out under the company.

THINGS TO BE MAINTAIN

The company must provide the Register with an annual Audit Report, a list of projects completed and projects in progress, bank account details, and a list of office bearers/members along with contact numbers. The Article of Association must be signed by three office bearers or members, as the case may be. The company should not claim patronage from any government or authority unless it has received written consent from such government or authority. The company shall not engage in industrial or commercial activities or function as a trade organization.

VOLUNTARY SOCIAL WELFARE AGENCIES (REGISTRATION AND CONTROL) ORDINANCE, 1961

A voluntary social welfare agency is a non-profit organization that is registered and regulated by the government. Voluntary agencies are created by people who want to help others without expecting anything in return. These agencies provide services to the community such as:
- Health care
- Education
- Housing
- Social work
- Counselling

Various types of welfare that social work covers:

-Child welfare
-Youth welfare
-Women Welfare
-Welfare for mentally and physically handicapped
-Family planning
-Recreational programmes intended to keep people away from anti-social activities
-Social education aimed at developing sense of responsibility among people

DOCUMENTS REQUIRED FOR NGO REGISTRATION UNDER VOLUNTARY SOCIAL WELFARE AGENCIES ORDINANCE, 1961

The following documents are required for the constitution of the Agency:
- Form B signed
- Attested cnic copies of all members
- The 1st minute of meeting of the members of Agency
- Registered address of the Agency along with Correspondence email address, Correspondence
telephone and Website of Agency.
- Letterhead of the Agency stamped and sealed
- Office bearers list with mobile number
- Member list of general body along with contact numbers and valid email addresses of all members

SOCIETIES REGISTRATION ACT, 1860

Societies which are registered under The Societies Registration Act, 1860 include but are not limited to Charitable societies, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge [the diffusion of political education], the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of painting and other works of art, collections of natural history, mechanical and philosophical inventions, instruments, or designs.

DOCUMENTS REQUIRED FOR NGO REGISTRATION UNDER SOCIETIES ACT 1860

The Memorandum of Association
The Articles of Association
Attested CNIC copies of all members of organization
The 1st minute of meeting of Members of Society
Registered address, Correspondence email address, Correspondence telephone and website address of Society.
Application for registration must be given on Letterhead accompanied by prescribed forms available at office of Registrar Societies.

THE TRUST ACT, 1882

A public charitable trust can be created for the benefit of society or for certain sections of society. It's important to note that Trust and Waqf may seem similar but in Waqf is made for religious purposes while Trust is created to give benefit to general or certain class of people in society. Trust property vests in Trustees, but waqf property vests in Almighty Allah. The purpose of a trust is only considered lawful if it is (a) not forbidden by law, (b) not the kind of thing that would go against any law if it were allowed, (c) not done as part of a fraud, (d) not likely to cause harm to another person or their property, or (e) not something that the Court would see as being morally wrong or against what is good for society.

DOCUMENT REQUIRED FOR NGO REGISTRATION UNDER THE TRUST ACT, 1882

A trust deed provides the detail of properties, objectives & other details with reference to Trust. It's a document that outlines the particulars of the trust, trustees and beneficiaries. The ownership proof along with other documents to prove ownership of property is included in the trust deed.

How Burhan & Associates Can help?

There is no one-size-fits-all answer when it comes to deciding which entity to form. The best way to decide is by looking at the facts and circumstances of each case. If you are looking to establish an NGO or NPO in Pakistan, it depends not only on the purpose, object and scope of association, society or agency, but also on the donators. Burhan & Associates has extensive experience in registering NGO, NPO and Trust in Pakistan and can legal assist you not only in choosing the favourable entity for your object, but also can get your entity registered and running hassle-free and efficiently while you can focus your energy on material and crucial issues pertaining to business.

FAQs

To register an NGO in Pakistan, you need to:
1. Decide the type of NGO (Society, Trust, or Non-Profit Company).
2. Choose a unique name for the NGO.
3. Prepare the required documents, including the Memorandum of Association, Articles of Association, and CNIC copies of founding members.
4. Apply with the relevant authority: the Society Registration Act for Societies, the Trust Act for Trusts, or SECP for Non-Profit Companies.
5. After submission, the authority reviews and issues a registration certificate if all requirements are met.

Required documents for NGO registration in Pakistan include:
o Memorandum of Association (MoA) and Articles of Association (AoA)
o CNIC copies of the founding members
o Proof of address for the NGO’s office
o Minutes of the founding meeting
o Resolution by the founders to form an NGO
o In some cases, NOC (No Objection Certificate) from the relevant district administration Additional documents may be required based on the type of NGO and the registration authority.

In Pakistan: o A Society is typically registered under the Societies Registration Act, 1860 for cultural, educational, and charitable purposes.
o A Trust is established under the Trusts Act, 1882 and is commonly used for family-run or private charitable projects.
o A Non-Profit Company is registered with the SECP under Section 42 of the Companies Act, 2017, for NGOs focused on broader social causes and requiring corporate governance. Each type has specific legal and operational requirements, so the choice depends on the NGO’s goals and structure.

The registration time varies depending on the type of NGO and the specific authority. Registering a Society or Trust typically takes 1-2 months, while registering a Section 42 company with the SECP may take longer, around 2-4 months, due to more stringent documentation and review processes. Delays can occur if documents need correction or additional information is requested.

Registering an NGO in Pakistan provides legitimacy, allowing it to receive donations, apply for grants, and sign formal contracts. Registered NGOs can also qualify for tax exemptions under certain conditions, build public trust, and increase their capacity to work with government or international agencies. It also helps in better transparency and accountability.

Yes, foreigners can participate in registering an NGO in Pakistan, usually in collaboration with local Pakistani citizens. Foreign participation may require additional approvals and security clearances from relevant authorities. It’s recommended that foreigners consult a lawyer or expert in NGO registration to navigate specific regulations and compliance requirements.

A Section 42 company in Pakistan is a type of non-profit organization registered with the Securities and Exchange Commission of Pakistan (SECP) under Section 42 of the Companies Act, 2017. These companies are formed for promoting social welfare, charity, education, or cultural activities. Unlike societies or trusts, Section 42 companies require corporate governance, audited financial statements, and regular reporting to the SECP.

Yes, there are fees involved in registering an NGO, which vary depending on the type and the registration authority. For example, registering a Section 42 company with SECP has application and licensing fees, which are generally higher than fees for societies or trusts. Additionally, there may be costs for document preparation, legal fees, and government levies.

9. How can an NGO obtain tax exemption in Pakistan?

NGOs in Pakistan can apply for tax exemption by registering with the Federal Board of Revenue (FBR) after obtaining their registration certificate. The NGO must prove its non-profit status and comply with financial and reporting requirements. Exemptions are granted to organizations working in charity, education, health, and welfare and can reduce tax liability on donations and revenue.

Answer: To maintain registration, NGOs must comply with regulatory requirements, including:
o Submitting annual financial statements or audit reports.
o Holding regular board or general body meetings and maintaining records.
o Renewing registration periodically (for societies).
o Filing updates with SECP (for Section 42 companies). Non-compliance may lead to penalties or suspension of the NGO’s registration.

You can check the registration status of an NGO by contacting the respective registration authority. For societies, contact the Provincial Registrar of Societies; for trusts, the District Registrar; and for Section 42 companies, the SECP’s online portal or office. These authorities maintain public records and can confirm the registration status and compliance of NGOs.

Registered NGOs in Pakistan can receive funding through various sources, including:
o Donations from individuals, corporations, and philanthropists.
o Grants from local or international organizations.
o Government funding for approved social projects.
o Partnerships with local businesses or international NGOs. Registered NGOs may also be eligible to apply for tax-exempt status, making donations more attractive to potential donors.

Yes, most registered NGOs in Pakistan are required to submit annual reports or audited financial statements. Section 42 companies, in particular, must file annual returns with the SECP. This transparency helps ensure accountability and compliance with the regulations. Societies and trusts may have similar requirements depending on their provincial regulations.

While it’s legally possible to operate informally, unregistered NGOs face limitations, such as an inability to receive formal donations, enter contracts, or qualify for grants and tax exemptions. Registration provides legal recognition, protects the organization’s name, and allows it to operate with transparency and accountability, which is crucial for building trust with donors and the public.

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Non-Governmental Organization Registration in Pakistan

COMPANY NOT FOR PROFIT UNDER COMPANIES ACT, 2017: