This document discusses laws related to non-profit organizations (NPOs) in Pakistan. It outlines the key laws that NPOs can register under, including the Societies Registration Act of 1860, Trust Act of 1882, and Companies Ordinance of 1984. It also describes the registration procedures and benefits of registering an NPO, such as tax exemptions. Specifically, NPOs that are approved are exempt from income tax and minimum tax on their income from donations, grants, investments and other approved sources. However, the document notes that Pakistan would benefit from more clarification and simplification of the registration process for NPOs, as well as additional tax benefits, in order to better support their operations.

1. NPOs related Laws in Pakistan:
An Analysis and Need for a
Comprehensive Law
Presenter:
Tabeer Iftikhar
FA15-MPA-075

2. NGOs
Registrations
In Pakistan
By: Synergy Business Consulting

3. Summary of Article:
▪NGOs
▪Benefits of Registration of NPO under Pakistanai Law
▪Procedure to gain the discussed benefits
▪Appropraite Laws
▪Societies Registration Act 1860
▪Trust Act 1882
▪Companies Ordinance 1984
▪Approval of a Non-Profit Organization
▪Heads of Income Exempted from Tax For NPO & Trust
▪Conclusion

4. ▪ A charitable institution or NGO is
established for the benefit of society.
Profit of NGO is not used for personal
benefits.

5. Benefits of Registration of
NPO under Pakistanai Law
Tax Exemption under Income Tax Ordinance
2001 & Income Tax Rules 2002
Tax Relaxations For Donors
Artificial legal person, hence assets owned
shall be held in perpetuity & recognition as a
bona fide foundation

6. Procedure to gain the discussed benefits
Organization should be
registered under any of
relevant laws
Separate application form for
approval as NPO & Tax
exemption under Income Tax
law

7. Appropraite Laws
Under
Companies
Ordinance
1984
Under
Societies
Registration
Act 1860
Under
Voluntary
Social
Welfare
Organizations
Ordinance
1961
Under Trusts
Act 1882

8. NPOs in Pakistan
Registered By:
Society
Trust
Non profit
company with
limited liability
Social Welfare
Agencies

9. Societies
Registration Act
1860
Society is
established
under
Societies
Registration
Act 1860
Minimum 7
members, 3
members
from
Managing
Committee
Memorandum
and Rules
and
Regulations
of Association
in printed
Clauses
explaining
objectives &
methods of
operations

10. Societies
Registration Act
1860
Dissolution
The manner of elections and removal of officers
Notices for meetings
Procedures relating to accounting and audit
General Body and Managing Committee
Membership
Rules and Regulations, certified by at least 3 members of the Managing Committee & contain clauses:
Memorandum of Association & Rules and Regulations laid and filed with registrar

11. Trust Act 1882
Trust can be
established
under Trust
Act 1882
Trustee &
Beneficiary
are involved
Conditions
governing
public
charitable &
private trusts
are equal
Trust must
declare some
property,
whether in
cash or in
capital assets
(land or
buildings)
Trust’s
objectives
must be
charitable or
for the benefit
of society

12. Application of
Registration For
Trust
Preparation of
Trust Deed
Particulars of
documents
creating Trust
Particulars of
Trustees &
Beneficiaries
Details about
Trust Property

13. Companies
Ordinance 1984
NPO is registered
under section 42
of Companies
Ordinance 1984
Directs profits or
any income
generated for
achieving its
objectives.
Disallows payment
of profits to
members
Registered
through SECP

14. Approval of a Non-
Profit Organization
Tax benefits are examined according to Income Tax Ordinance
2001 & Income Tax Rules 2002
“2(36) “non profit organization” means any person
established for religious, charitable or educational purposes
or for the promotion of amateur sport
Commissioner has issued a ruling certifying that the person is
a nonprofit organization & registered under law as NPO
None of the income or assets of the person confers, or may
confer a private benefit on any other person

15. Tax Benefits
Tax rebate to
charitable donations
Charities approved
are exempted from
levy of minimum tax
of 0.50% of turnover

16. Heads of Income
Exempted from Tax For
NPO & Trust
Income
from property
Voluntary
contributions
including
donations
and
subscriptions
Foreign
grants
Profit on
debt from
scheduled
banks
Grants
received from
Federal,
Provincial or
District
Governments

17. Conclusion:
Registration process is
explained under all relevant
laws
Need more clarification and
simple process to get the NPOs
registered
More tax benefits should be
provided to further smoothening
the operations of NPOs

18. THANKS!