ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) will not issue registration certificates of “not-for-profit association” (NPO) to the International Non-Governmental Organizations (INGOs) under the regulation policy of the INGOs.
The SECP has proposed amendments in the Companies Regulations, 2024 through a notification issued here on Friday.
The International Non-Governmental Organizations (INGOs) shall not be eligible to be registered with the Commission as “not-for-profit association” (NPO) in accordance with the Policy of the Federal Government for regulation of (INGOs) in Pakistan.
Under the proposed amendments, an International Non-Governmental Organizations (INGO) shall not be eligible to be registered with the Commission under section 42 of the Companies Act in accordance with the Policy of the Federal Government for regulation of (INGOs) in Pakistan.”
According to the SECP, a not-for-profit association (more commonly called an NGO or NPO) may be registered as company under the provisions of the Companies Ordinance, 1984 (the ‘Ordinance’).
In general terms, a not-for-profit association (company) applies its profits or income in promoting its charitable/ useful objects and prohibits the payment of any profits, income, dividend or proceeds to its members.
Before its registration as a company with the Securities and Exchange Commission of Pakistan (the ‘Commission’), any such association is required to obtain licence under Section 42 read with rule 6 of the Companies (General Provisions and Forms) Rules, 1985 (the ‘Rules’) and the relevant Circulars issued from time to time. The Commission issues licence for a period of five years, renewable for further term of five years each.
Copyright Business Recorder, 2024
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