Wednesday 8 February 2012

Laws Related to NGOs & NPOs in Pakistan


 Laws Related to NGOs & NPOs in Pakistan


In the Islamic Republic of Pakistan there are numbers of laws for registration of non-profit Organisations including the prominent Acts and Ordinances as The Societies Registration Act, 1860, The Trusts Act, 1882, Companies Ordinance, 1984, The Co-operative Societies Act, 1925, Trade Organisations Ordinance, 2007, etc.
You may also want to review details pertaining to:
§  FAQs: Registration of a non-profit (NPO / NGO) under Societies Act, 1860
§  FAQs: Registration of a non-profit (NPO / NGO) under Companies Ordinance, 1984
Please contact AMLAW for advise on which type of NGO / NPO best suites your needs.
Societies or NPO’s which are registered under The Societies Registration Act, 1860 are for the promotion of literature, science or the fine arts or for the diffusion of useful knowledge, the diffusion of political education or for charitable purposes. Any seven or more persons associated for any literary, scientific, charitable purpose, the diffusion of useful knowledge, the foundation or maintenance of libraries or reading rooms for general use, public museums, galleries of paintings or works of art, collections of natural history, mechanical and philosophical inventions, instruments or designs, management, overseeing, monitoring and providing supervisory cover to local institutions such as primary schools, middle schools, high schools, dispensaries, basic health units and rural centres and other health institution, population welfare facilities, water supply and sanitation faculties may form themselves into a society under the Act subscribing their names to a memorandum of association filing the same with the Registrar of Societies.
The Trust Act, 1882
A public charitable trust is a trust which is created for the benefit of society generally or for certain sections of society. The said Act extends to the whole of Pakistan but nothing contained in the Act affects the rules of Muslim law as to waqf. A waqf under Muslim law is generally made with a pious, charitable or religious purpose. As a Trust property vests in Trustees, but waqf property vests in Almighty Allah. A trust may be created for any lawful purpose like advancement of religion, advancement of knowledge, advancement of health and safety of public, advancement of any other beneficial to making etc. The purpose of a trust is lawful unless it is forbidden by law, or is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies injury to the person or property of another, or the Court regards it as immoral or opposed to public policy. According to the Trust Act, 1882, no trust in relation to immovable property is valid unless declared by a non-testamentary instrument in writing signed by the author of the trust or the trustee and registered, or by the will of the author of the trust or of the trustee and Trust in relation to movable property is valid unless declared as aforesaid, or unless the ownership of the property is transferred to the trustee. A Trust may be established by a deed of settlement and rules there-under under the Trusts Act, 1882.
Company not for profit under Companies Ordinance, 1984
Associations not for profit are formed under section 42 of the Companies Ordinance, 1984 the said ordinance envisages two types of associations established for non-profit basis. An Association not for profit is an organization formed for the purpose of serving public or for mutual benefit other than pursuit of benefits. According to Section 42 of the Companies Ordinance, 1984 the main objects of the Association are for promoting commerce, art, science, religion, sports, social services, charity or any other useful object, and applies or intends to apply its profits, if any, or other income in promoting its objects. The Association shall on registration enjoy all the privileges of a limited company and be subject to all its obligations, except those of using the words Limited, Private Limited or Guarantee Limited. To get registered an Association for non-profit purposes first is to obtain license under Section 42 of the Ordinance from Securities & Exchange Commission of Pakistan and thereafter to register the Association as a company. The association is generally a guarantee limited company having no share capital.
Trade Organisations Ordinance, 2007
The said ordinance extends to whole of Pakistan for the registration and regulation of trade organisations. No trade organisation shall be registered under the Ordinance or such other law unless it holds a license granted by the Federal Government authorizing it to be so registered. A trade organistaion holding a license shall be registered under the ordinance as a company with limited liability.
The Co-operative Societies Act, 1925
This Society is a form of organisation where persons join together voluntarily on a basis of equality of a common economic need.
Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961
A Voluntary Social Welfare Agency is an organization, 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 fields mentioned below and depending for its resources on public subscriptions, donations or Government aid. A voluntary social welfare agency is registered under the Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961. The fields in which welfare services can be rendered according to Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 are child welfare; youth welfare; women’s welfare; welfare of the physically and mentally handicapped; family planning; recreational programs intended to keep people away from anti-social activities; social education of adults aimed to develop the sense of civic responsibility, 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; and coordination of social welfare agencies. The said Ordinance prohibits the establishment or continuation of voluntary Social welfare agency without registration.
AMLAW offers a broad spectrum of legal services to NGOs/NPOs in Pakistan including registration with relevant Government authorities.


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