How To Register NGO In Pakistan ?

Registering an NGO in Pakistan: A Step-by-Step Guide

Establishing a Non-Governmental Organization (NGO) in Pakistan is a noble way to contribute to social welfare. Many NGOs operate in areas such as healthcare, education, and charity, playing a crucial role in serving society. If you’re planning to start your own non-profit organization, this guide will walk you through the registration process seamlessly.

Types of NGO Registration in Pakistan

In Pakistan, you can choose between two types of registration for your organization:

Non-Profit Organization: Register with the Ministry of Social Welfare and Bait-ul-Maal (SWB).
Charitable Organization: Register with the Securities and Exchange Commission of Pakistan (SECP).

How to Register an NGO in Pakistan

Registering an NGO in Pakistan involves several steps and adherence to specific legal requirements. Here’s a detailed process:

Procedure for NGO Registration

Obtain the Model Constitution:
- Pay the requisite fee and get a receipt.
- Collect the Model Constitution and necessary application forms from the Deputy Director of Social Welfare and Bait-ul-Maal in your district.
Visit the Area Office:
- Submit your application to the appropriate Area Office as directed.
Feasibility Report Preparation:
- An area officer will visit your NGO’s headquarters to prepare a feasibility report.
Submission to Deputy Director:
- The area officer submits the registration case to the Deputy Director of Social Welfare and Bait-ul-Maal.
Special Recommendation:
- The Deputy Director visits your NGO, prepares a report, and if satisfied, recommends your case to the concerned Divisional Director, Social Welfare and Bait-ul-Maal.
Divisional Director’s Review:
- The Divisional Director reviews the registration application. If satisfied, they provide a Special Recommendation and forward it to the Directorate General of Social Welfare and Bait-ul-Maal, Punjab. If not, they communicate their concerns to the Deputy Director.
Verification by Special Branch of Police:
- The Divisional Director may instruct the Deputy Director to verify information about NGO members with the Special Branch of Police.
Deputy Director’s Submission:
- The Deputy Director (NGOs) reviews the paperwork and submits the case.
Approval or Disapproval:
- The Director General of Social Welfare and Bait-ul-Maal, Punjab approves or disapproves the NOC application based on the findings.
Issuance of NOC:
- Upon approval, the Deputy Director (NGOs) issues the NOC and submits the registration case.
Issuance of Registration Certificate:
- The Deputy Director issues a registration certificate under the specified format.
Record Keeping:
- A copy of the registration certificate and verified documents is sent to the Divisional Director and the Deputy Director (NGOs) for records.

Documents Required for Registration

List of Members
Financial Statements (SECP)
Audited Accounts (SECP)
Copy of By-Laws
Proof of Address
Copies of Permits

Legal Framework for NGO Registration in Pakistan

Different laws govern the registration of NGOs in Pakistan, including:

The Societies Registration Act, 1860

Purpose: Charitable activities, promotion of science, literature, fine arts, and maintenance of libraries and museums.
Requirements: Minimum of seven members.

The Voluntary Social Welfare Agencies Ordinance, 1961

Purpose: Voluntary social services including child welfare, youth welfare, and women’s welfare.
Dependence: Government aid and donations.

The Trust Act, 1882

Purpose: Creation of public charitable trusts, either movable or immovable, temporary or permanent.

The Companies Act, 2017

Purpose: Serving the public, mutual benefit of a group, promoting arts, science, religion, sports, social services, and charity.

Required Documents for Registration Under Respective Acts

Act	Required Documents
The Societies Registration Act, 1860	Memorandum of Association, Articles of Association, Attested CNIC copies of all members, Correspondence email, phone, website, list of office bearers, property papers or lease agreement.
The Voluntary Social Welfare Agencies Ordinance, 1961	Constitution of the Agency, Form B signed, Attested CNIC copies, first meeting minutes, registered address, correspondence details, list of members, property papers.
The Trust Act, 1882	Trust deed, property details, objectives, particulars of trustees and beneficiaries, ownership proof.
The Companies Act, 2017	Name, bank challans for registration and license, list of promoters and their CNICs, NGO details, promoters’ undertakings, mission statement, resumes of promoters.

Departments Involved in the Registration Process

Two main departments oversee the registration and monitoring of NGOs in Pakistan:

The Ministry of Social Welfare and Special Education
The Provincial Social Welfare Department

In Karachi, the Securities and Exchange Commission (SEC) issues licenses to NGOs. While many NGOs operate without registration, it is advisable to get your NGO registered to enjoy the benefits and avoid potential inconveniences.

By following these steps and ensuring compliance with the relevant legal requirements, you can successfully register your NGO in Pakistan and start making a meaningful impact in your chosen field of social welfare.

How To Calculate Zakat

Understanding Zakat: A Guide to Calculating Your Obligatory Charity

Islam, the religion of love and ease, fosters social harmony, brotherhood, and a shared commitment to supporting one another. One of the key ways Islam promotes social welfare is through Zakat, a mandatory act of charity that aids those in need.

If you are among the fortunate chosen by the Almighty to bring ease to others, do not neglect to pay Zakat. It is essential to understand the amount you are obligated to give and to purify your wealth accordingly. However, calculating Zakat can sometimes be confusing, as the amount varies based on individual circumstances. This guide will walk you through the entire process of determining the amount you need to pay, known as nisab.

“You shall observe the Salah and give the obligatory charity (Zakat), and bow down with those who bow down.”
(Qur’an 2:43)

Ibn Umar narrated, “Whoever earns any money, he is not liable to pay zakat until the period of a year has passed (while still possessing the same amount of money).”
[Tirmidhi]

The Importance of Zakat

Zakat is not just a financial obligation; it is a means of purifying your wealth and soul, ensuring that your earnings are used for the betterment of society. It helps bridge the gap between the rich and the poor, promoting a sense of community and mutual support.

Calculating Your Zakat: Step-by-Step

1. Determine the Nisab

Nisab is the minimum amount of wealth one must possess before they are liable to pay Zakat. This threshold varies based on current market values of silver or gold. As of today, nisab is calculated using either:

Gold: Equivalent to 87.48 grams of gold.
Silver: Equivalent to 612.36 grams of silver.

2. Assess Your Total Wealth

Calculate your total assets, including:

Cash in hand and in bank accounts.
Savings.
Gold and silver (jewelry and bullion).
Investments (stocks, bonds, etc.).
Business inventory and profits.
Property owned for investment purposes.
Debts owed to you (loans you’ve given).

3. Deduct Liabilities

Subtract any liabilities from your total wealth, including:

Immediate household expenses.
Debts payable within the next year.
Bills due (utilities, rent, etc.).

4. Calculate the Zakat Payable

If your total wealth after deducting liabilities meets or exceeds the nisab threshold, you owe Zakat. Zakat is typically 2.5% of your total qualifying wealth. Use this formula:

$Wealth−Liabilities40\text{Zakat} = \frac{\text{Total Wealth} – \text{Liabilities}}{40}$

5. Pay Your Zakat

Distribute your Zakat to those who qualify as recipients according to Islamic principles, such as the poor, the needy, and those in debt. Ensure your Zakat reaches those in genuine need and is utilized effectively.

Why Pay Zakat?

Paying Zakat is not only a religious duty but also a means of cleansing your wealth and contributing to the welfare of society. It reflects your gratitude for the blessings you have received and ensures that you are fulfilling your responsibilities towards those less fortunate.

Follow this guide to accurately calculate your Zakat and avoid any inconvenience. By adhering to these steps, you can ensure that your wealth is purified and that you are playing a vital role in upholding social justice and equity within your community.

Embrace the spirit of Zakat, and let it be a testament to your commitment to love, ease, and support for your fellow beings.

A Comprehensive Guide to Zakatable Assets and Zakat Calculation

Zakatable Assets: What You Need to Know

Before you begin calculating Zakat, it’s crucial to identify which assets are subject to this obligation. Zakat isn’t limited to just money; it also includes various types of assets. Here is a breakdown of assets on which Zakat is due:

#	Assets	Zakat
1	Gold	Due on 87.48 grams of pure gold. (Note: Jewelry is exempt)
2	Silver	Due on 612.36 grams
3	Business Assets	Appraised at current market value: <br>- Finished goods: Retail sale price <br>- Unfinished products: Expected sale value
4	Money Invested in Trade	Zakat due after one lunar year. Profit earned is also subject to Zakat when the original amount’s Zakat is due.
5	Stocks and Investments	Zakat is applicable
6	Cash Savings	2.5% of the total savings
7	Startups	2.5% of the total zakatable assets of the company
8	Investment Property	Zakat is required on rental proceeds, not on the property’s worth
9	Money in Banks	Zakat on capital and profit for funds in Islamic banks. For interest-based banks, Zakat is due only on the capital deposits.

Understanding Nisab and How to Calculate It

Nisab is the minimum amount of wealth a Muslim must possess to be liable for Zakat. It represents a specific financial threshold and is typically calculated based on the value of 85 grams of gold.

Nisab Calculation: Each year, the Nisab value can fluctuate. It is determined by local Islamic authorities based on the average price of 85 grams of gold over the previous year.
Zakat Rate: If your net assets exceed the Nisab threshold, you are required to pay Zakat, which is 2.5% of your wealth that has been in your possession for more than one lunar calendar year.

Step-by-Step Zakat Calculation

Calculating Zakat might seem daunting, but it’s straightforward if you follow these steps:

Sum Up Your Assets
Add up all the assets you have owned for the past year, including those listed above.
Total Your Living Expenses
Calculate your total living expenses for the year.
Determine Zakatable Wealth
Subtract your total living expenses from your net income to find your Zakatable wealth.
Compare With Nisab Threshold
Check the current cash value of your Nisab threshold based on the value of gold or silver. If your Zakatable wealth exceeds this threshold, you need to proceed with the calculation.
Calculate Your Zakat Amount
Multiply your Zakatable wealth by 2.5% to determine the total Zakat you need to pay for the year.

Simplify Your Calculation with a Zakat Calculator

For a more convenient and precise calculation, consider using a Zakat calculator. This tool can help you quickly determine the exact amount of Zakat you owe, ensuring accuracy and saving time.

Conclusion

By understanding which assets are Zakatable and following a clear calculation process, fulfilling your Zakat obligation becomes simpler and more manageable. Calculating and paying your Zakat not only purifies your wealth but also contributes to the welfare of those in need. Embrace this annual act of charity, and let your contributions make a meaningful difference in the lives of others.