07-01-2006, 05:10 AM
It is not mendatory on NGOs to get registered under the companies ordinance.
But the companies ordinance offer special previleges to NGOs registered under the companies ordinance. But it also prohibits the distribution of profits of NGOs to any of its members.
So, it is not mendatory but an NGO can be registered under the companies ordinance as a guarantee limited company having or not having share capital, and after getting a certificate under section 42 it can get some special previleges.
Plus registering with SECP increases the credibility of the company in the eyes of donor agencies.
which is one of the main source of funding 4 NGOs.
Plus u can get the tax exemption under section 153 very easily after registering under the companies ordinance.
so quite some uses. but one drawback is the hell of filing and other requirements under the companies ordinance.
But once again i wud say it is not mendatory to be registered under the companies ordinance.
u r welcome to ask any questions.
I was quite busy so a late reply.
But the companies ordinance offer special previleges to NGOs registered under the companies ordinance. But it also prohibits the distribution of profits of NGOs to any of its members.
So, it is not mendatory but an NGO can be registered under the companies ordinance as a guarantee limited company having or not having share capital, and after getting a certificate under section 42 it can get some special previleges.
Plus registering with SECP increases the credibility of the company in the eyes of donor agencies.
which is one of the main source of funding 4 NGOs.
Plus u can get the tax exemption under section 153 very easily after registering under the companies ordinance.
so quite some uses. but one drawback is the hell of filing and other requirements under the companies ordinance.
But once again i wud say it is not mendatory to be registered under the companies ordinance.
u r welcome to ask any questions.
I was quite busy so a late reply.
