Registration Of Local NGO In Pakistan
The legal framework governing NGOs is complex, and there are several laws under which an NGO may be registered in Pakistan. The most significant of these are:
1. Voluntary Social Welfare Agencies Registration and Control Ordinance 1961. This Ordinance defines permissible purposes within the social welfare field. Registration under this legislation is mandatory if organizations wish to receive government funding.
2. The Societies Registration Act, 1860. This Act applies to charitable societies with a wide range of public benefit purposes.
3. The Cooperative Society Act, 1925
4. The Companies Ordinance, 1984 (section 42). This section of the Ordinance applies to not-for-profit companies formed to promote ‘useful objects’
5. The Trust Act, 1882. This act applies to private trust with a wide range of purposes.
6. Income Tax Ordinance, 2001. This Act sets out the tax exemptions which NGOs are eligible for.
Registration of NGO is mandatory in order to receive local and/or foreign funding. An NGO has to be registered as a company with Securities and Exchange Commission of Pakistan (the “SECP”). Before its registration as a company with SECP, any such association is required to obtain license. Certain conditions must be met before the SECP will grant a License. These include prohibitions on any payments to members and trading; a requirement for companies to have public company and limited liability status; and provisions that prevent changes to the memorandum and articles of association or members from resigning without SEC approval. Following this they must apply for a Certificate of Incorporation from one of eight Company Registration Offices.
LOCAL NGO REGISTRATION WITH ISLAMABAD CAPITAL TERRITORY (ICT) ADMINISTRATION AND ECONOMIC AFFAIRS DIVISION TO RECIEVE FOREIGN FUNDING
The local NGO will be registered under the Voluntary Social Welfare Agencies (Registration & Control) Ordinance, 1961 with the Government of Pakistan. Approximate time for processing application is four months. As per Government of Pakistan policy to regulate the NGO’s Operating in Pakistan, all NGOs availing foreign funding are also required to get Registration/ License from EAD.
Our team at MB can help in the following legal services, including but not limited to:
• Preparation of required documentation for registration of NGO with SECP
• Applying for license under Section 42 of The Companies Act 2017
• Preparation of all required documentation for registration with ICT
• Preparation of all required documentation for registration with Economic Affairs Division (EAD)
• Approval of Commissioner Inland Revenue concerned under section 2 (36) of the Income Tax Ordinance, 2001
• Obtaining positive recommendation from Pakistan Centre for Philanthropy (PCP)
• Facilitating in getting security clearances from concerned authorities.
• Facilitating in obtaining tax exemptions