Registering an NGO in Pakistan: Section 42 company, trust or society?
Diaspora families, foundations and international charities often want a Pakistani vehicle for their giving. The structure you choose decides how you are regulated, how you raise money and how easily you can open bank accounts.
Published 26 October 2026
Section 42 company
A not-for-profit company licensed by SECP under section 42 of the Companies Act, 2017. It has corporate personality, clear governance and is the vehicle banks and international donors are most comfortable with. In exchange it faces SECP licensing, conditions on the use of income, filings and periodic scrutiny of funding sources.
Trust
Created by a trust deed and registered with the relevant registrar. Quick to set up and suited to family charities and endowments, but governance depends heavily on the deed and some banks and donors are more cautious with trusts.
Society
Registered under the Societies Registration Act, 1860 — a membership body suited to associations and community groups. Formation is simpler, but governance disputes between members are common without a careful constitution.
Provincial charity registration
Several provinces now require charities raising funds to register with a provincial charity authority — in Punjab, the Punjab Charity Commission under the Punjab Charities Act, 2018 — in addition to the entity's own registration. Fund-raising without it can lead to penalties.
Foreign funding and tax
Local organisations receiving foreign contributions face additional federal requirements and scrutiny of donors, and SECP has barred companies from accepting funds from blacklisted international NGOs. Approved non-profit status for tax purposes is a separate application to FBR. See our NPO & NGO Formation practice.
Frequently asked questions
Which structure do international donors prefer?
Usually a Section 42 company, because of its corporate governance and SECP oversight.
Do I also need to register with the Punjab Charity Commission?
If you raise charitable funds in Punjab, provincial charity registration is generally required in addition to entity registration.
Can an overseas Pakistani be a director or trustee?
Yes, subject to security clearance and documentation requirements for foreign nationals and non-residents.
This article is general information as of October 2026, not legal advice. Rules change; contact the firm about your specific matter.