NGOs mean Non-Governmental Organizations which is established for the sole purpose to ensure community work and social welfare. There are numerous NGOs established in in Pakistan including national and international organizations. In Pakistan, NGOs are required to undergo registration process before initiating its operations. Considerable growth has recently been seen in the non-profit sector in Pakistan as the government has learnt the importance and value of NGO’s in the development and improving the life of citizens of Pakistan. NGOs in Pakistan in recent years have attained a lot of attention following several crises and natural disasters that occurred in Pakistan where NGOs have had engaged for the welfare of society. However, a large proportion of the NGOs are informal and unregistered with any government agency.
NGO registration in Pakistan is not difficult but can become confusing. This article is focused on providing the guidelines on how to register NGO in Pakistan and what are the various factors influencing this process are provided for understanding. If you are looking forward to participate in the welfare of the society or a group of people affected by some crises or disaster etc. and you have group of people accompanied having a similar object than you should opt to register NGO in Pakistan.
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:
- 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
Limited Company purpose of which is not profit can be registered under section 42 of the Companies Act, 2017 with 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 public or for mutual benefit of certain group or class of people. The main objects of such company as required is for promoting commerce, art, science, religion, sports, social services, charity or any other useful object, and intends to apply its profits or other income in promoting its objects. In order to register an association for non-profit under Act 2017, the very first step is to obtain License from SECP. Application can be processed both online and offline, however, SECP promotes filing online applications and allow 50% reduction in the filing fee to any person applying through online process. It is important to note that at the time of applying for license 2 important factors are the name and object of the Association. After the name and object has been approved and License has been granted, second step requires to apply for registering the Association. Detail of members, their resume showing their experience etc are to be provided to SECP in the prescribed manners.
DOCUMENTS REQUIRED FOR NGO REGISTRATION UNDER THE COMPANY ACT, 2017
- Apply for availability of name
- Bank challan of Rs. 25,000 for registration
- Bank challan of Rs. 25,000 for license
- List of Promoters of the Association with their detailed particulars
- Scanned Cnic of Promoters
- Detail of NGO and other entities in which promotor holds or previously held a position.
- Undertaking from each promoter for payment of initial donation in the Association
- There must be atleast 3 promoters of the company who must have sufficient skills, expertise and resources to accomplish object of the proposed company
- Mission statement and statement of work to be done under the company
- Provide estimate / projections of the future incomes
- Resume of promoters
THINGS TO BE MAINTAIN
- Audit Reports, projects completed, projects under process, bank accounts and list of office bearers / members along with contact numbers must be provided to Register every year.
- Article of Association signed by minimum three Office Bearers or the as the case may be.
- Patronage of any government or authority, express or implied, shall not be claimed unless such government or authority has signified its consent thereto in writing.
- The company shall not engage in industrial and commercial activities in any manner or function as a trade organization.
- The income and any profits of the company, shall be applied solely towards the promotion of objects of the company only and not to its promoters by any means whatsoever.
- The company shall comply with all terms and conditions imposed by law or by regulator.
Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961
A voluntary social welfare agency is registered under the Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961. It is an entity, association or undertaking established by persons of their own free will for the purpose of rendering welfare services in any one or more of the following fields:
- 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
- Welfare and rehabilitation of released prisoners
- Welfare of juvenile delinquents
- Welfare of the socially handicapped
- Welfare of the beggars and destitute
- Welfare and rehabilitation of patients
- Welfare of the aged and infirm
- Training in social work
- Co-ordination of social welfare agencies
Such entity registered under the law in any of the above field is depending for its resources on public subscription, donations or Government aid. The law provides that that no voluntary Social welfare agency can be established without registration and provide a procedure for registration, dissolutions, remedy of appeal for refusal to grant registration and penalty for violation of the conditions imposed in the law.
DOCUMENTS REQUIRED FOR NGO REGISTRATION UNDER VOLUNTARY SOCIAL WELFARE AGENCIES ORDINANCE, 1961
- 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
- Property papers or lease agreement of the office premises
Societies Registration Act, 1860
Societies which are registered under The Societies Registration Act, 1860 are 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. Minimum seven (7) members are required to join for the purpose to register a society under the Act, 1860. Society under the law can be registered by giving an application for registration on the prescribed form and in prescribed manner to the Registrar of Societies.
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 office bearers list with mobile number signed by each office bearer
- Members list of Society along with contact numbers, valid email addressess of all members
- Property papers or lease agreement of the office premises
The Trust Act, 1882
A public charitable trust can be created for the benefit of society or for certain sections of society. 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 considered lawful unless it is (a) forbidden by law, or (b) is of such a nature that, if permitted, it would defeat the provisions of any law, or (c) is fraudulent, or (d) involves or implies injury to the person or property of another, or (e) the Court regards it as immoral or opposed to public policy. Trust can be of Movable or Immovable property as the case may be yet there are condition to be complied without which the trust under the Act 1882 is declared to be considered void. Act provides rights, obligations, duties of parties in Trust including that of Trustee and beneficiary. Trust can be permanent or for a specific period of time depending on the terms and condition of Trust deed as may be executed.
DOCUMENT REQUIRED FOR NGO REGISTRATION UNDER THE TRUST ACT, 1882
- Trust deed provides the detail of properties, objectives & other details with reference to Trust
- Particulars of documents creating the trust
- Detail particulars of the trustees and the beneficiaries
- Ownership proof along with other documents to prove ownership of property.
How can Hamza & Hamza Law Associates help?
To decide which entity to form depends on facts and circumstances of each case. If you are looking to establish NGO or NPO in Pakistan depends not only on the purpose, object and scope of association, society or agency but also on the donators. Hamza and Hamza has extensive experience in registering NGO, NPO and Trust in Pakistan and can legal assist you not only in choosing the favorable 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.