How To Register NGO In Pakistan ?
In Pakistan, NGOs can be registered under several laws depending on their legal structure and nature of work. The main laws under which NGOs are registered include:
Societies Registration Act, 1860: The Societies Registration Act, 1860 provides a legal framework for the registration and functioning of societies. NGOs can register as societies to operate as non-profit organizations addressing various social issues.
Companies Act, 2017 (Section 42): Under Section 42 of the Companies Act, 2017, NGOs can register as non-profit companies. These companies are required to meet specific criteria and operate for promoting charitable or social welfare causes.
Trusts Act, 1882: NGOs can register as trusts under the Trusts Act, 1882. Trusts are suitable for organizations that intend to manage and utilize resources for charitable or social welfare purposes.
Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961: This ordinance provides a framework for the registration and regulation of voluntary social welfare agencies. NGOs involved in social welfare activities can register under this law.
Income Tax Ordinance, 2001: While not a registration law, the Income Tax Ordinance, 2001 is significant for NGOs as it outlines tax obligations, exemptions, and benefits for registered non-profit organizations. NGOs must comply with the tax regulations and obtain tax-exempt status if eligible.
Foreign Contributions Regulation Act (FCRA): The FCRA regulates the acceptance and utilization of foreign contributions by NGOs. NGOs receiving foreign funding must comply with the provisions of this law.
It is important for NGOs to carefully select the appropriate legal structure and register under the relevant law to ensure compliance with the specific regulations, reporting requirements, and benefits associated with each legal framework.
It is advisable to consult legal experts or seek professional advice to understand the specific requirements and procedures for registration under the chosen law, as regulations may vary and evolve over time.
Societies Registration Act, 1860
Certainly! The Societies Registration Act, 1860 is a prominent law under which NGOs can register as societies in Pakistan. Here’s a more detailed explanation:
The Societies Registration Act, 1860: The Societies Registration Act, 1860 provides a legal framework for the formation, registration, and governance of societies in Pakistan. It defines the rules and procedures for the establishment and functioning of non-profit organizations working for charitable, educational, literary, scientific, or social purposes.
Key Features of the Act:
Formation of Societies: The Act allows individuals who are desirous of forming a society to come together for a common charitable or social welfare objective. A minimum of three individuals is required to form a society.
Memorandum of Association (MOA): To register as a society, the founding members must draft a Memorandum of Association (MOA). The MOA should include the name, aims and objectives, registered office address, and details of the governing body.
Governing Body: Societies must have a governing body or executive committee responsible for managing the affairs of the organization. The governing body is usually elected or appointed by the members and holds key responsibilities for decision-making, financial management, and policy implementation.
Registration Process: To register a society under the Societies Registration Act, the founding members must submit the MOA, along with other necessary documents, to the office of the Registrar Joint Stock Companies (RJSC) in their respective province. The Registrar reviews the application and, if satisfied, issues a Certificate of Registration.
Legal Status: Once registered, a society obtains legal recognition as a separate entity from its members. It can acquire and hold property, enter into contracts, and sue or be sued in its own name.
Amendment and Dissolution: Societies have the flexibility to amend their MOA and by-laws, subject to compliance with the legal provisions. In case of dissolution, societies must follow the prescribed procedures outlined in the Act.
Audit and Reporting: Societies are required to maintain proper books of accounts, undergo annual audits, and submit annual reports to the concerned authorities.
Advantages of Registering as a Society:
Ease of Registration: The Societies Registration Act offers a relatively straightforward and accessible registration process compared to other legal structures.
Flexibility: Societies enjoy flexibility in terms of their internal governance, decision-making processes, and utilization of funds.
Tax Benefits: Registered societies may be eligible for tax exemptions and benefits under the Income Tax Ordinance, 2001, subject to meeting the prescribed criteria.
Credibility and Recognition: Registration under the Societies Registration Act provides legal recognition and credibility to the NGO, making it easier to access funds, collaborate with other organizations, and operate effectively.
It is essential for NGOs considering registration as societies to thoroughly understand the provisions of the Societies Registration Act, adhere to the reporting and compliance requirements, and seek legal advice if needed to ensure smooth operations and legal compliance.
Non-profit Companies: Section 42 of the Companies Act, 2017
Certainly! The Companies Act, 2017, specifically Section 42, provides a legal framework for the registration and operation of non-profit companies in Pakistan. Here’s a more detailed explanation of this law:
Non-profit Companies: Section 42 of the Companies Act, 2017, allows organizations to register as non-profit companies. These companies are distinct from for-profit entities and operate for promoting charitable or social welfare causes. Unlike for-profit companies, non-profit companies are not primarily focused on generating profits for their members or shareholders.
Registration Process: To register as a non-profit company under Section 42, the following steps need to be followed:
a. Memorandum and Articles of Association: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) for the non-profit company. The MOA should clearly state that the company is a non-profit organization and that its profits will be utilized solely for promoting its objectives. The AOA outlines the company’s internal rules and regulations.
b. Board of Directors: Non-profit companies must have a board of directors responsible for the company’s governance. The board members are typically individuals who are dedicated to the organization’s mission and bring relevant expertise to its operations.
c. Application and Submission: Submit the application for registration, along with the required documents and fees, to the Securities and Exchange Commission of Pakistan (SECP). The application should include the MOA, AOA, details of the board of directors, and other necessary information.
Regulatory Authority: The SECP is the regulatory authority responsible for overseeing the registration and regulation of non-profit companies under Section 42. They review the application and supporting documents to ensure compliance with the law.
Tax Exemption: Non-profit companies registered under Section 42 are eligible for tax exemptions and benefits under the Income Tax Ordinance, 2001. However, they must meet certain conditions and comply with the reporting requirements specified by the Federal Board of Revenue (FBR) to maintain their tax-exempt status. This includes maintaining proper accounting records, filing annual tax returns, and adhering to transparency and governance standards.
Governance and Reporting: Non-profit companies are expected to follow good governance practices and maintain transparency in their operations. They must hold regular board meetings, maintain proper financial records, and prepare annual financial statements. Non-profit companies may also have reporting obligations to the SECP and other regulatory authorities.
Utilization of Profits: Non-profit companies registered under Section 42 are required to utilize their profits solely for promoting their objectives. These profits cannot be distributed among the members or shareholders as dividends or profits.
By registering as a non-profit company under Section 42, organizations gain legal recognition, enhanced credibility, and potential access to funding opportunities. However, it is important for non-profit companies to comply with the specific regulations, reporting requirements, and conditions set forth by the SECP and other relevant authorities to maintain their status as non-profit entities. Seeking legal advice or consulting professionals experienced in non-profit registration can ensure compliance and a smooth registration process.
The Trusts Act, 1882
The Trusts Act, 1882 provides a legal framework for the formation and operation of trusts in Pakistan. Here’s a more detailed explanation of the Trusts Act:
Trust Structure: Under the Trusts Act, NGOs can register as trusts. A trust is a legal arrangement where property or assets are held by one party (the trustee) for the benefit of another party (the beneficiaries) or a specific purpose. Trusts are commonly used by NGOs to manage and utilize resources for charitable or social welfare purposes.
Registration Process: To register as a trust under the Trusts Act, the following steps need to be followed:
a. Settlor and Trustees: A settlor (also known as the author or founder) creates the trust and transfers assets or property to the trust. The settlor appoints trustees who are responsible for managing the trust and its assets in accordance with its objectives.
b. Trust Deed: Prepare a trust deed, which is a legal document that outlines the objectives, governance structure, powers, and duties of the trustees, and the rights and entitlements of the beneficiaries. The trust deed must specify the charitable or social welfare purposes for which the trust is established.
c. Registration: Register the trust deed with the relevant authority, usually the local Registrar or Sub-Registrar, along with the prescribed fee and required documents. The trust becomes legally recognized upon registration.
Trustees’ Responsibilities: Trustees have a fiduciary duty to act in the best interests of the trust and its beneficiaries. They are responsible for managing the trust’s assets, making decisions, and ensuring that the trust’s objectives are fulfilled. Trustees must act honestly, diligently, and in accordance with the trust deed and the law.
Beneficiaries: The trust deed specifies the beneficiaries or the class of beneficiaries who will benefit from the trust’s activities. Beneficiaries can be individuals, communities, or specific target groups that the trust aims to assist or support.
Trust Property: The settlor transfers property or assets to the trust, which becomes the trust property. Trustees hold and manage the trust property for the benefit of the beneficiaries or the trust’s objectives. The trust deed should outline the rules and procedures for managing and utilizing the trust property.
Dissolution: The trust deed may provide provisions for the dissolution of the trust if its objectives are fulfilled or circumstances require its termination. The trust deed should specify the process for the distribution of the trust’s remaining assets upon dissolution.
Reporting and Compliance: Trusts are required to maintain proper accounting records and prepare annual financial statements. They may also have reporting obligations to the relevant authorities, such as the local Registrar or Sub-Registrar.
By registering as a trust under the Trusts Act, NGOs gain legal recognition and establish a transparent and accountable structure for managing their resources. However, it is important for trusts to adhere to the provisions of the Trusts Act, maintain proper records, and fulfill their fiduciary responsibilities. Seeking legal advice or consulting professionals experienced in trust registration can ensure compliance and a smooth registration process.
How to registered NGO/NPO/Church/Ministry/Society in Pakistan?
Are you passionate about making a difference in society? Registering a non-governmental organization (NGO) in Pakistan is a vital step toward bringing about positive social change. However, the legal process can be daunting and complex. That’s where our legal support services come in. We offer expert guidance and assistance to help you navigate the intricacies of NGO registration, ensuring a smooth and successful journey toward fulfilling your noble mission.
Understanding the Importance of Legal Support: Registering an NGO involves complying with specific laws, regulations, and procedures. Our team of legal professionals specializes in NGO registration in Pakistan and provides comprehensive support tailored to your unique needs. Here’s how our legal expertise can benefit you:
Expert Guidance and Consultation: Our experienced legal team will work closely with you to understand your organization’s objectives, activities, and long-term vision. We provide expert guidance and strategic advice to help you select the most suitable legal structure, whether it’s registering as a society, non-profit company, or trust. Our thorough understanding of the legal landscape ensures that your organization’s legal structure aligns seamlessly with your goals.
Document Preparation and Review: We assist you in preparing and reviewing all the necessary legal documents required for NGO registration. From drafting constitutions, Memorandum of Association (MOA), and Articles of Association (AOA) to preparing trust deeds and other relevant paperwork, our meticulous attention to detail ensures compliance with legal requirements. Our expertise in legal documentation helps convey your organization’s mission and objectives effectively.
Compliance with Regulations and Statutory Requirements: Our legal professionals are well-versed in the legal and regulatory framework governing NGOs in Pakistan. We guide you through the compliance obligations, including tax registrations, reporting requirements, and governance standards. By ensuring adherence to these regulations, we help your organization operate transparently and maintain compliance with legal obligations.
Liaison with Regulatory Authorities: Interacting with regulatory authorities can be time-consuming and complex. As your legal representatives, we act as intermediaries between your organization and the relevant regulatory bodies such as the Registrar Joint Stock Companies (RJSC), Securities and Exchange Commission of Pakistan (SECP), and others. We handle the communication, addressing any queries or concerns promptly and ensuring a smooth process from start to finish.
Ongoing Post-Registration Support: Our legal support doesn’t end with registration. We provide continued guidance on post-registration compliance, including bookkeeping, annual filings, audits, and maintaining tax-exempt status. We stay updated on evolving legal obligations and changes in the legal landscape, keeping you informed and helping you adapt to ensure continued success.
Conclusion: Embarking on the journey of registering your NGO in Pakistan is an empowering step toward making a lasting impact on society. With our dedicated legal support services, you can navigate the complexities of NGO registration with confidence and peace of mind. Our team of experienced legal professionals will be by your side, providing expert guidance, ensuring compliance with regulations, and helping you achieve your organization’s vision. Let us be your partner in bringing about positive social change through effective legal support. Together, we can make a difference.
