How to register an NGO in Pakistan

In Pakistan, registering a non-governmental organization (NGO) is essential for gaining legal recognition, attracting funding, and ensuring credibility with stakeholders. NGOs in Pakistan play a vital role in supporting development, education, healthcare, and social welfare. Whether you’re setting up a charitable foundation, a community-based society, or a national-level not-for-profit company, the registration process involves several legal and administrative steps. This article provides a complete guide on how to register an NGO in Pakistan, covering all possible registration routes, required documents, timelines, and post-registration compliance requirements.

Understanding What an NGO Is
An NGO is a non-profit, non-governmental entity that operates independently from the state and is established for social, educational, charitable, cultural, or religious purposes. It does not aim to generate profit for distribution but uses all income for achieving its objectives. NGOs in Pakistan can be small community-based initiatives or large organizations with national and international operations.

Legal Frameworks for NGO Registration in Pakistan
Pakistan offers multiple legal options for registering NGOs. Each framework has its own benefits and registration procedures, depending on the organization’s scope and operational objectives.

1. Societies Registration Act, 1860

• Best for: Cultural, literary, scientific, or charitable societies

• Minimum members: 7

• Registration authority: Registrar of Societies (provincial level)

2. Trusts Act, 1882

• Best for: Religious or charitable trusts with property or assets

• Managed by: Board of Trustees

• Registration authority: Sub-Registrar or Deputy Commissioner

3. Companies Act, 2017 – Section 42

• Best for: Large-scale, national or international NGOs

• Governed by: Board of Directors

• Registration authority: Securities and Exchange Commission of Pakistan (SECP)

4. Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961

• Best for: Social welfare organizations focused on local community development

• Registration authority: Department of Social Welfare

Step-by-Step Guide to Registering an NGO in Pakistan

Step 1: Define Your Objectives and Select the Legal Structure
Start by clarifying your NGO’s goals, mission, target beneficiaries, and intended activities. Based on this, select the most appropriate legal structure.

• Choose Society for education, community uplift, or research

• Choose Trust for asset-based philanthropy or religious purposes

• Choose Section 42 company for large-scale operations or international donor involvement

Step 2: Choose a Name and Get Approval (if required)
For a Section 42 company, you must reserve your NGO’s name through SECP’s eServices portal. The name should not be identical to an existing organization or violate national naming guidelines. For societies and trusts, name clearance is usually less formal but must still avoid duplication.

Step 3: Prepare Your Governing Documents
Each type of NGO requires different constitutional documents:

• Society: Memorandum of Association (MoA) and Rules & Regulations

• Trust: Trust Deed (signed and notarized)

• Section 42 Company: MoA and Articles of Association

These documents should clearly state the NGO’s purpose, scope, membership rules, governance structure, financial management policies, and dissolution clauses.

Step 4: Assemble the Founding Members
Founders must be adult citizens with valid CNICs. Minimum membership requirements are:

• 7 members for societies

• 2 or more trustees for trusts

• 3 directors for Section 42 companies

Foreign nationals may also be part of the governing body but will need additional documents such as passport copies and a No Objection Certificate (NOC) from the Ministry of Interior.

Step 5: Choose a Registered Office
You must have a registered address for the NGO where notices and legal correspondence can be delivered. Valid proof includes a utility bill, rental agreement, or ownership document.

Step 6: File Application with the Appropriate Authority

For Society Registration
Submit your application to the Registrar of Societies in your district or province. Documents required:

• MoA and Rules & Regulations

• CNICs of members

• Office address proof

• Minutes of the formation meeting

• Fee payment receipt

• NOC from police (in some cases)

For Trust Registration
File your documents with the Sub-Registrar or Deputy Commissioner’s Office. Required documents include:

• Trust Deed (on stamp paper)

• Trustee CNICs

• Address proof

• Passport-size photos of trustees

• Witnesses for deed execution

For Section 42 Company Registration
Apply online through the SECP eServices portal. Steps include:

• Name reservation through eServices

• Preparation and submission of MoA and Articles

• Form 1, Form 21, and Form 29

• Undertakings for not distributing profits

• Director profiles

• Payment of license and incorporation fees

For Social Welfare Agency Registration
Apply at the Social Welfare Department with:

• Constitution or charter

• List of governing members

• CNICs and photographs

• Address verification

• Detailed project and activity plan

Step 7: Obtain Registration Certificate or License
After successful submission and review of documents:

• A Society gets a Registration Certificate

• A Trust receives a registration document for its deed

• A Section 42 Company gets a License and then a Certificate of Incorporation

• A Social Welfare Agency is issued a Certificate of Registration

Step 8: Register with the Federal Board of Revenue (FBR)
After registration, apply for a National Tax Number (NTN) via FBR’s online portal (IRIS). This is mandatory for bank account operations and tax compliance. NGOs can also apply for tax exemptions under Section 2(36) and Section 100C of the Income Tax Ordinance, 2001.

Step 9: Open a Bank Account in the NGO’s Name
To open a bank account, you’ll need:

• Registration Certificate

• Board Resolution or Trust Resolution

• NTN certificate

• CNICs of authorized signatories

• Account opening form

Some banks may require additional compliance checks under AML/CFT laws, especially for organizations receiving foreign funding.

Step 10: Fulfill Post-Registration Requirements
Once your NGO is registered, you must comply with ongoing legal and regulatory requirements, including:

• Annual submission of financial reports

• Renewal of licenses or SECP approvals

• Tax return filings with FBR

• Donor reporting and fund utilization tracking

• Intimating changes in governing body or office address

Receiving Foreign Funding
If your NGO plans to receive donations from international donors, you must register with the Economic Affairs Division (EAD) of the Ministry of Finance. After signing an MoU with EAD, you must:

• Maintain separate foreign currency accounts

• File quarterly and annual reports on fund usage

• Comply with donor agreement conditions

Challenges in NGO Registration in Pakistan

1. Complex Documentation
The drafting of legal documents like MoA, trust deeds, and articles requires legal expertise and alignment with applicable laws.

2. Regulatory Delays
Processing times at SECP, Registrar offices, and Social Welfare Departments can vary and may delay the registration process.

3. Bank Account Restrictions
Due to stringent AML regulations, banks often delay opening accounts until detailed due diligence is completed.

4. Tax Compliance Requirements
NGOs must maintain accounting records, get annual audits, and ensure timely filing to retain their tax-exempt status.

Why Register an NGO Legally in Pakistan?

• Legal Protection: Allows the organization to own assets, enter contracts, and have legal standing

• Credibility: Increases trust among donors, beneficiaries, and government agencies

• Funding Access: Enables you to apply for local and international grants

• Tax Benefits: Eligible for income tax exemptions and deductible donations

• Operational Scale: Provides a formal structure for expanding operations across districts or countries

How Sterling.pk Helps with NGO Registration
At Sterling.pk, we offer end-to-end support for registering NGOs across all legal frameworks in Pakistan. Our services include:

• Drafting of all legal documents

• Submission and follow-up with SECP or relevant registrars

• Tax registration and NTN application

• Bank account setup support

• Ongoing compliance advisory

Our team ensures that your NGO starts with a strong legal foundation and remains fully compliant with evolving regulatory requirements.

Conclusion
Registering an NGO in Pakistan involves navigating legal frameworks, preparing detailed documentation, and fulfilling compliance standards. Whether you opt for a society, trust, or Section 42 company, legal registration is the key to operating transparently, accessing funding, and building credibility. With professional guidance from Sterling.pk, you can streamline the registration process and focus on making a social impact through your NGO’s mission