How to Register a Non-Profit Organization (NGO) in Pakistan

Introduction

Non-profit organizations (NPOs) or non-governmental organizations (NGOs) play a vital role in social development, education, health, disaster relief, and human rights in Pakistan. However, operating an NGO legally requires registration with the relevant authorities. The registration process can vary depending on your organization’s scope, funding sources, and governance structure. This guide explains each registration option, required documents, procedures, and compliance obligations.

Understanding Non-Profit Organizations in Pakistan

In Pakistan, “NGO” is not a single legal form. It is a general term for organizations that are not set up to earn profits for owners or shareholders. Legally, such organizations may take different forms, including:

• Societies under the Societies Registration Act, 1860

• Non-profit companies under Section 42 of the Companies Act, 2017

• Trusts under the Trusts Act, 1882

• Associations under the Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961

Each option has its own procedures, documentation, and regulatory oversight.

Legal Forms for NGOs and Their Key Features

Step-by-Step Registration as a Society

Eligibility

A minimum of seven members is typically required to register a society.

Procedure

1. Draft a Memorandum of Association stating objectives and areas of work.

2. Prepare Rules and Regulations (by-laws) for internal governance.

3. Collect CNIC copies and photographs of founding members.

4. Submit application to the Provincial Registrar of Societies with:

   • Application form

   • Two copies of Memorandum of Association

   • Two copies of Rules and Regulations

   • Proof of registered office address

5. Pay the prescribed registration fee.

6. Receive Certificate of Registration upon approval.

Compliance After Registration

• Annual filing of list of governing body members.

• Maintenance of accounts and audits.

• Inform Registrar of any amendments to rules or office address.

Step-by-Step Registration as a Non-Profit Company (Section 42)

Eligibility

A non-profit company can be formed by any number of persons for promoting commerce, art, science, religion, charity, or any other useful object, without distribution of profits.

Procedure

1. Reserve the company name on SECP’s e-Services portal.

2. Apply for a license under Section 42 by submitting:

   • Memorandum and Articles of Association

   • Detailed statement of work

   • Three-year business/activities plan

   • List of proposed directors with CNICs and profiles

   • Bank draft of license fee

3. After SECP issues the license, file incorporation documents (Form 1, 21, 29) on e-Services.

4. Obtain Certificate of Incorporation.

Compliance After Registration

• File annual returns and audited accounts with SECP.

• Ensure profits are applied solely to the organization’s objectives.

• Seek SECP approval for changes in Articles or for mergers.

Step-by-Step Registration as a Trust

Eligibility

A trust can be created by one or more persons (settlors) who dedicate property for charitable or public purposes.

Procedure

1. Draft a Trust Deed stating objectives, trustees, and property endowed.

2. Attach CNIC copies and photographs of trustees.

3. Submit the Trust Deed to the Sub-Registrar (or District Registrar) in the area of the trust property.

4. Pay registration fee and stamp duty.

5. Receive Registration Certificate.

Compliance After Registration

• Maintain proper accounts of the trust.

• Follow the terms of the Trust Deed.

• Register under tax laws for exemptions if applicable.

Step-by-Step Registration under the Voluntary Social Welfare Agencies Ordinance

Eligibility

Any organization providing welfare services in specific fields such as child welfare, women’s welfare, education, or health.

Procedure

1. Apply to the Provincial Social Welfare Department with:

   • Constitution/By-laws

   • List of office bearers

   • CNIC copies of members

   • Bank statements or funding details

2. Pay nominal registration fee.

3. Department conducts verification.

4. Certificate of Registration issued.

Compliance After Registration

• Submit annual reports and audited accounts.

• Obtain permission before receiving foreign funding.

Tax Registration and Exemptions

After registering under any of the above laws, NGOs must also register with the Federal Board of Revenue (FBR):

• Obtain a National Tax Number (NTN).

• Apply for exemption under Section 2(36) and Section 100C of the Income Tax Ordinance.

• File annual income tax returns even if income is exempt.

Foreign-funded NGOs may need to sign a Memorandum of Understanding with the Economic Affairs Division and comply with the Policy for Regulation of International NGOs.

Choosing the Right Legal Structure

Costs and Timelines

• Society: PKR 5,000–15,000, 2–6 weeks

• Section 42 Company: PKR 30,000–50,000, 4–8 weeks

• Trust: PKR 5,000–10,000 plus stamp duty, 2–4 weeks

• Welfare Agency: Minimal fee, 3–6 weeks

Costs can vary by province and by use of legal professionals.

Common Challenges and How to Overcome Them

• Incomplete Documentation: Prepare all by-laws, member CNICs, and office proof in advance.

• Foreign Funding Approvals: If receiving funds from abroad, comply with Economic Affairs Division policy early.

• Tax Exemption Delays: Engage with FBR promptly and file complete applications.

Benefits of Proper Registration

• Legal recognition and credibility with donors and stakeholders.

• Eligibility for grants and tax exemptions.

• Ability to open bank accounts and sign contracts.

• Transparency and accountability through audits and filings.

Conclusion

Registering an NGO in Pakistan involves selecting the right legal structure—society, non-profit company, trust, or welfare agency—and completing the relevant registration process with the provincial or federal authority. Although procedures differ, all require clear objectives, by-laws, and responsible governance. Proper registration not only ensures legal compliance but also builds credibility with donors, partners, and the communities you serve.