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Corporate Practice

The right vehicle makes good intentions last.

Sutra Law helps founders, families and organisations in Pakistan choose and register the right non-profit vehicle, whether a trust, a society or a Section 42 company, and then keep it compliant with charity, tax and funding rules.

Adv. Danish Parmar

Legally reviewed by

Adv. Danish Parmar, Advocate High Court

Reviewed

At a glance

NGO, Trust & Non-Profit Registration

Services covered
9
Jurisdiction
Pakistan
Typically for
Families setting up charitable or educational trusts · Doctors, educators and professionals starting welfare projects · Corporate groups establishing CSR foundations
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Services in detail

Our NGOs & Trusts services

Each matter is scoped to what you need. You can instruct us on a single item below or on a wider mandate.

1

Trust Formation & Trust Deeds

Drafting and registering trust deeds under the Trusts Act 1882 and applicable provincial trust laws, including private and public charitable trusts.

A trust deed is the organisation's rulebook, and gaps in it surface years later when trustees disagree or die. We draft deeds with clear objects, appointment and removal of trustees, management of property and dissolution, then register them under the Registration Act 1908 and any applicable provincial trust law.

What's included

  • Choosing between a public charitable trust and a private family trust
  • Drafting objects, trustee powers, succession and dissolution clauses
  • Registration with the sub-registrar and the provincial trust authority
  • Re-registration or updated filings for trusts formed under older rules
Discuss this service
2

Society Registration

Memorandum, rules and registration of societies under the Societies Registration Act 1860 for associations and membership bodies.

A society suits bodies built around members, such as professional associations, alumni groups and welfare committees. We prepare the memorandum and rules under the Societies Registration Act 1860, provide for elections and membership, and handle registration and objections with the registrar of societies.

What's included

  • Memorandum of association and rules setting out objects and membership
  • Provisions for elections, governing body and general meetings
  • Filing with the registrar of societies and answering objections
  • Annual lists of office bearers and later amendments to rules
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3

Section 42 Not-for-Profit Companies

Incorporation and licensing of not-for-profit companies by the SECP under Section 42 of the Companies Act 2017.

Institutional donors and corporate groups often prefer a Section 42 company because it is regulated by the SECP and files audited accounts. We prepare the licence application and constitutional documents under the Companies Act 2017, deal with the Commission's queries and set up the company's statutory registers.

What's included

  • Licence application to the SECP with objects and funding plan
  • Memorandum and articles meeting not-for-profit licence conditions
  • Incorporation through the SECP eServices portal after licence approval
  • Post-incorporation filings, board composition and licence condition compliance
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4

Provincial Charity Registration

Registration and renewals with provincial charity commissions and social welfare departments where the law requires them.

Several provinces now require charities raising funds from the public to register with a charity commission or welfare department. We confirm whether the organisation falls within the relevant law, prepare the application and supporting records, and keep renewals and returns on track.

What's included

  • Assessing whether provincial charity registration applies to the organisation
  • Applications with governing documents, office bearers and financial information
  • Responding to inspections, queries and requests from the authority
  • Renewals, annual returns and notification of changes in management
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5

Tax Exemption Approvals

Applications for approval as a non-profit organisation under the Income Tax Ordinance 2001 and related advice on donor tax credits.

Registration does not make an organisation tax exempt. We prepare the application for approval as a non-profit organisation under the Income Tax Ordinance 2001, check that accounts and governance meet the conditions, and advise on keeping approval once granted, since the rules change through Finance Acts.

What's included

  • Reviewing eligibility for approval as a non-profit organisation
  • Preparing the application with accounts, deeds and activity records
  • Advice on donor tax credits and receipts for contributions
  • Annual returns and compliance conditions for continued approval
Discuss this service
6

Governance & Board Advice

Trustee and director duties, conflict of interest policies, meeting procedures and resolving internal disputes.

Non-profits rarely fail from lack of goodwill; they stall over unclear authority, conflicts of interest and absent records. We advise trustees and directors on their duties, write policies the board will actually use, and help resolve disputes before they reach court.

What's included

  • Trustee and director duties, liability and decision-making procedures
  • Conflict of interest, related party and financial control policies
  • Minutes, resolutions and record-keeping that satisfy banks and regulators
  • Resolving deadlock or disputes between trustees and governing members
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7

Foreign Funding & INGO Matters

Advice on approvals for receiving foreign contributions and the registration framework for international NGOs operating in Pakistan.

Foreign grants bring federal scrutiny, and the policy governing them has changed more than once. We advise local organisations on approvals before receiving foreign contributions and assist international NGOs with the registration framework for working in Pakistan, checking current requirements before funds are committed.

What's included

  • Current approval requirements for receiving foreign contributions
  • Registration framework for international NGOs operating in Pakistan
  • Bank documentation and source of funds queries on foreign remittances
  • Partnership agreements between international donors and local implementers
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8

Grant & Donor Agreements

Reviewing and negotiating grant agreements, MOUs with partners and restricted gift terms.

Grant terms can impose reporting, audit and repayment obligations that a small organisation cannot meet. We review and negotiate agreements before signature, flag restrictions on the use of funds, and draft MOUs with implementing partners so responsibilities are clear on both sides.

What's included

  • Reviewing grant conditions, reporting duties and termination provisions
  • Restricted and endowment gifts and their permitted use
  • MOUs and sub-grant agreements with implementing partners
  • Intellectual property, data and branding clauses in donor contracts
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9

Amendments, Conversion & Dissolution

Changing objects or trustees, converting between vehicles and winding up a non-profit with assets applied as the law requires.

Organisations change: objects widen, founders step back, or a trust outgrows its structure. We handle amendments to deeds and rules, conversion to a more suitable vehicle, and dissolution in which remaining assets pass to a similar body as the governing law and documents require.

What's included

  • Amending trust deeds, society rules or articles of association
  • Changing trustees, office bearers or directors and updating registrations
  • Converting a trust or society into a Section 42 company
  • Winding up and transfer of surplus assets to a similar organisation
Discuss this service

Overview

NGO, Trust & Non-Profit Registration in Pakistan

Sutra Law helps founders, families and organisations in Pakistan choose and register the right non-profit vehicle, whether a trust, a society or a Section 42 company, and then keep it compliant with charity, tax and funding rules.

Practice group
Corporate & Commercial
Services
9 areas of work

Pakistan has no single form for a charity. A family setting up a scholarship fund, a doctor opening a free clinic and an international donor launching a programme may each need a different vehicle. The main options are a trust under the Trusts Act 1882 or the newer provincial trust laws, a society under the Societies Registration Act 1860, and a not-for-profit company licensed by the SECP under Section 42 of the Companies Act 2017.

Each route differs in how it is governed, how easily it can be amended and how banks and donors view it. A trust is quick to establish but depends heavily on its trustees. Societies suit membership bodies, while a Section 42 company carries more scrutiny and more credibility with institutional funders. We explain those trade-offs plainly, draft the constitutional documents and handle registration with the registrar, provincial authority or SECP.

Registration is only the start. Many provinces now require charities to register with a charity commission or similar body, and banks apply close checks when opening accounts for non-profits. Approval as a non-profit organisation under the Income Tax Ordinance 2001 needs its own application and record-keeping. Organisations receiving foreign funds face further federal requirements, and international NGOs have a separate registration regime. We advise on each of these as the organisation grows.

Families setting up charitable or educational trusts
Doctors, educators and professionals starting welfare projects
Corporate groups establishing CSR foundations
Associations, alumni bodies and professional societies

When clients come to us

Questions we are often asked to resolve

  1. 1

    Should our charity be a trust, a society or a Section 42 company?

  2. 2

    We registered a trust years ago. Do we now need to register it again under the provincial law?

  3. 3

    Our bank will not open an account for the trust. What documents are missing?

  4. 4

    How do we obtain tax-exempt status so donors can claim a credit?

  5. 5

    A foreign foundation wants to fund our project. What approvals do we need first?

  6. 6

    Two trustees have fallen out and the deed says nothing about removal. What now?

How we help

A considered, practical approach

  1. 01

    Purpose and structure

    We start with what the organisation will do, who will run it and where the money will come from, then recommend the vehicle that fits.

  2. 02

    Constitutional documents

    We draft the trust deed, memorandum and rules, or articles of association with clear objects, decision-making and succession of trustees or directors.

  3. 03

    Registration and approvals

    We file with the sub-registrar, the registrar of societies, the provincial charity authority or the SECP, and follow up on objections.

  4. 04

    Ongoing compliance

    After registration we help with tax exemption, annual filings, board records, donor agreements and amendments as the work expands.

Key considerations

What to weigh before you act

  • 1Trusts, societies and Section 42 companies differ in governance, amendment and dissolution, so the choice is hard to undo cheaply.
  • 2Provincial trust and charity laws have changed in recent years, and older trusts may need to register or update their records.
  • 3Tax exemption is not automatic on registration; it needs a separate approval and continued compliance with its conditions.
  • 4Banks apply enhanced checks to non-profits, so clean records of trustees, donors and the source of funds save time.
  • 5Foreign funding and INGO activity sit under a federal regime that changes through policy, and should be checked before money moves.

Connected expertise

Related services

01

Company Incorporation

SECP registration of private, single-member and public companies, LLPs and foreign company offices.

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02

Regulatory Compliance

SECP and sector regulator compliance, licences, show-cause notices and compliance programmes.

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03

Tax Advisory

Written opinions, transaction advice, treaty and cross-border questions, and reviews of existing structures.

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04

Corporate & Commercial Law

Boards, shareholders, transactions and contracts: corporate advice for companies doing business in Pakistan.

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05

Legal Documentation

Deeds, affidavits, powers of attorney, undertakings and declarations, with stamping and attestation advice.

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Insights

Relevant insights

All insights

FAQ

NGOs & Trusts: common questions

Answers to the questions clients ask most often. Every matter turns on its facts.

Still have a question?

Speak with Sutra Law directly.

Request a consultation +92-336-3014759
1What is the difference between a trust, a society and a Section 42 company?

They are three different legal vehicles. A trust is created by a deed and run by trustees. A society is a membership body registered under the Societies Registration Act 1860. A Section 42 company is incorporated and licensed by the SECP under the Companies Act 2017 and has a board and annual filing duties. The right choice depends on funding sources, control and how much scrutiny the organisation expects.

2Does a trust need to be registered in Pakistan?

In practice, yes. A trust deed concerning property is generally registered under the Registration Act 1908, and several provinces now have their own trust laws requiring registration with a designated authority. Banks and donors will also ask for a registered deed. Older trusts should check whether the newer provincial rules require them to re-register or file updated information.

3Is a registered NGO automatically exempt from income tax?

No. Registration as a trust, society or Section 42 company does not by itself give tax exemption. The organisation must apply for approval as a non-profit organisation under the Income Tax Ordinance 2001 and meet the conditions, including proper accounts and use of funds for its stated objects. Approval also matters to donors seeking a tax credit. The rules change through Finance Acts, so we check them at the time of application.

4Can a Pakistani NGO receive money from foreign donors?

It can, but approvals are usually needed first. Organisations receiving foreign contributions are subject to a federal framework, and international NGOs need their own registration to work in Pakistan. Banks will also ask questions before releasing funds. Because the policy has changed over time, we confirm the current requirements before a grant agreement is signed or money is transferred.

5How long does it take to set up a Section 42 company?

It usually takes longer than an ordinary company. The SECP reviews the objects, the promoters and the proposed funding before granting the licence, and may ask for clearances or further information. Timing depends on how complete the application is and how quickly queries are answered. We prepare the file thoroughly at the start, which tends to reduce back-and-forth with the regulator.

This page gives general information about NGO, Trust & Non-Profit Registration in Pakistan. It is not legal advice. The law and procedures change, and every matter turns on its own facts, so please speak to us about your situation. Reading this page does not create a lawyer–client relationship.

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