The NGOs has played a significant role in reduction of poverty , social and welfare development, improvement in education , health sectors. Non-Government organizations achievements are recognized internationally and in Pakistan also. In addition, the role of NGOs in contributing to solve the problems of social-economic, rural development, poverty alleviation is vital. In Pakistan, these NGOs are required to meet the regulatory framework. Generally speaking, NGO Registration can be made under the following laws.
The Companies Act 2017
For NGO Registration under this law, It is mandatory requirement to apply for the grant of license to SECP and must be registered as public limited company. The license can be obtain for single or multiple objectives and promoters must have sufficient qualification and experience for this purpose. License Granted is valid for three years.
Covenants, Conditions, and Restrictions
In addition to the above, the following requirements are required to be meet along with others.
- Charity, property or revenue is restricts to the promotion of its objectives in other words money can only be use to promote its objectives and not for any other purposes.
- The organization registered under this law is only Public Ltd. and Promoters liability is also be limited but cannot be less than 100,000. Promoters are also required to contribute a minimum amount of 200,000.
- Involvements in any Trade activities or politics are not permissible.
- The used of any surplus or profit of the company is only for the welfare of the society and cannot be distributed to members or its closed relatives.
- Memorandum and articles of association can only changed with the permission of SECP.
- Uses of any Profit from the activities is restricts only to the promotion of organizations objectives and cannot pay any bonus or other incentives to the members.
- No foreign sources donation or charity can be receive or nor any request for such purposes is allowed without the prior approval from the concerned authority.
- All transactions should be made through a banking channel
- Separate register of books of accounts in the respective of donors are required to maintain which contained Donor’s names, address, donations receives whether in kind or cash and purposes of donations.
- Lastly Expenditures and income statements contains complete details of grants, contributions, or funds from locals and foreigners. Accounts prepare on Monthly basis and must be report to SECP.
Social Welfare Agencies
The main objectives of these types of NGOs are the welfare of the population. Their work is restricted to the welfare of children, Women, Youth, Family planning, Social education, prisoners who are released, and rehabilitation of patients. The application for NGO Registration can be filed with the Social welfare department of the provisional government. The procedure is simple. The first step is to constitute a general body of at least Twenty members, held their general meeting, and select members of the executive body (Minimum Seven). And finally Draft the Constitution, the minutes of the First meeting, and filing of NGO Registration all documents must be signed by all members.
The Trust Act, 1882
The trust can be created for various welfare objects, it easier to register and the main condition is that the person must transfer its immovable or movable property to the trust. This type of NGO s is more suitable for those persons who work individually because there are no requirements of members. The main document required for NGO Registration is Trust Deed. Lastly and most importantly all NGOs must submit their Progress Report, Audit Accounts, Details of Bank Accounts, Books of Accounts to the relevant authority annually.