AMLAW

Company Registration in Pakistan (FAQs)

amlaw — Sat, 22 May 2010 14:45:56 +0000

Frequently Asked Questions (FAQs) about Company Law in Pakistan.

Q. What is meant by Private Company?

A. According to Companies Ordinance, 1984 private company means a company, which, by its articles, restricts the right to transfer its shares, if any. Limits the number of its members to fifty not including persons who are in the employment of the company and prohibits any invitation to the public to subscribe for the shares, if any, or debentures of the company.

Q. Which law is applicable for incorporation of companies?

A. Relevant laws are Companies Ordinance, 1984, Companies (General Provisions and Forms) Rules, 1985, Single Member Companies Rules, 2003 and Code of Corporate Governance for limited companies.

Q. How many types of Companies are there?

A. Companies Ordinance, 1984 mentions three types of companies i.e. company limited by shares, company limited by guarantee and unlimited company. Companies which may be registered in the mentioned categories in Pakistan are a single member company, a private limited company, a public limited company; which may be listed or unlisted and a foreign company.

Q. What is Minimum number of members for forming a company?

A. A public unlisted company must have at least three members/directors whereas the company listed at stock exchange must have at least seven members/directors. A private company may have only two members/directors and a single member company can be formed with one chief executive and a company secretary.

Q. According to Company Law what is Special Resolution?

A. According to Companies Ordinance, 1984 Special Resolution means a resolution which has been passed by a majority of not less than three-fourths of such members entitled to vote as are present in person or by proxy at a general meeting of which not less than twenty-one days notice specifying the intention to propose the resolution as a special resolution has been duly given. Provided that, if all the members entitled to attend and vote at any such meeting so agree, a resolution may be proposed and passed as a special resolution at a meeting of which less than twenty-one days notice has been given.

Q .What is Memorandum of Association of a company?

A. Memorandum of Association primarily specifies the framework of company’s objectives and capital boundaries. It is the constitution of a company, and is its main document. A company cannot incorporate without a memorandum of association. It provides information about a company, its financial structure, and its functions. Memorandum of Association governs a company’s business operations by highlighting clauses of what a company can do and what it cannot. It includes Name clause, Registered Office Clause, Object Clause, Liabilities Clause, and Authorized Capital Clause. The object clauses cannot be changed or enlarged without the approval of Securities and Exchange Commission of Pakistan.

Q. What is Articles of Association?

A. Articles of Association highlight internal regulations for the management of the company. It states the roles and functions of the company’s management. Articles of Association govern company management’s operations they transcribes rules for conducting its daily business in accordance with applicable laws e.g. transfer and transmission of shares, mode of alteration in capital, holding of meetings, voting, powers and duties of directors and chief executive, distribution of dividends, capitalization of profits and reserves, preparation of accounts, winding up, etc.

Q .Can Articles of Association be altered after incorporation?

A. Yes, a company can alter its articles of association anytime after passing of a special resolution by the shareholders.

Q. Can I convert my sole proprietor business into a company?

A. Yes, sole proprietor business can be converted into sole proprietor company or a private limited company.

Q. To start a small business which forms should I adopt?

A. You can adopt any one option that is; by becoming a sole proprietor, by forming a single member company, by forming a partnership and you can also form a private limited company.

Q. Can a foreigner be a director in a Pakistani Company?

A. Yes, foreigner can be a director of a Pakistani Company after compliance with the Foreign Exchange Regulations.

Q. How does a director resign from a Private Limited Company?

A. A director can resign anytime subject to the clearance of any liability against him.

Q. What is the minimum paid-up capital of a Private Limited Company?

A. The minimum paid up capital at the time of incorporation of a private limited company has to be Pakistani Rupees 1, 00,000. There is no upper limit on having the authorized capital and the paid up capital. Capital can be increased any time.

Q. What is the difference between authorized capital and paid up capital?

A. The authorized capital is the limit up to which the directors are competent to issue shares. Paid up and subscribe capital means the capital actually issued in favor of the directors/shareholders within the limits of authorized capital.

Q. In future I am thinking to increase paid-up capital of my company is it possible?

A Yes, you can increase but subject to the compliance of the requirement of the Companies Ordinance, 1984.

Q. What are the requirements for a foreign company opening a branch in Pakistan?

A. Foreign company can establish a principal place of business in Pakistan after complying with the legal requirements laid down under section 452 to 460 of the Companies Ordinance, 1984.

Q. Can I change my company name after incorporation?

A. Yes, a company name can be changed any time after the incorporation, by passing a special resolution by the members and certificate of change of name is issued by the Securities and Exchange Commission of Pakistan in whose jurisdiction the registered office of the company is situated.

Q. I do not live in Pakistan Can I still set up a new company?

A. Yes, you can set up a company. If a Chief Executive/director resides outside Pakistan for more than three months then he can appoint an alternative director in his place.

Q. Can I choose any name I want for my new company?

A. You can choose any name but subject to the approval of the Securities & Exchange Commission of Pakistan.

Q. What are non-profit companies?

A. Non-profit companies are generally formed with the objective of promoting art, science, social services, etc. and the members are prohibited from receiving any dividend. Such companies are exempted from the requirements of using the word “limited” at the end of the name and are authorized to operate under a license issued by the regulator.

Q. Are there any restrictions on foreigners who wish to do business in Pakistan?

A. There is no restriction on foreigners to do business in Pakistan.

Q. Do foreigners need a Pakistani national to form a company?

A. Foreigner can form a company with 100% equity subject to the approval of Board of Investment, Government of Pakistan otherwise they must have someone from Pakistan to be a director.

Q. Does a company needs separate National Tax Number?

A. Yes, every company is assigned a national tax number without it a company cannot file its return. Documents which company requires for national tax number are photocopies of computer national identity card of all the directors or passport (in case of foreigner), incorporation certificate and application for national tax number by individual director in case they do not have national tax number.

Q. What are taxation rates for companies in the Pakistan?

A. The income tax payable by the companies in Pakistan is approximately 35% of the net profit of the company.

Q. Is it necessary to form a company or a partnership firm to start a business in Pakistan?

A. No, it is not necessary to form a company or a partnership firm to start a business in Pakistan.

Q. Can anyone be a Director in a company?

A. Yes anyone can be a company director provided he holds Computer National Identity Card and he or she is not debarred from any competent court of law to become a director.

Q. What does Limited Liability mean?

A. Limited liability means, that if a company is put into liquidation, the people who own the company will only be required to pay what they have already paid or agreed to pay towards settling its debts. Limited liability gives the owners of the company protection if the company fails. Liability of directors/members is limited to the extent of shares held by them in the company.

Q. What if I no longer need my company in Pakistan?

A. If you decide that you do not need a company that you have set up, you should consider putting it into voluntary liquidation if the company is solvent and is in a position to pay its liabilities within twelve months from the date of winding up, if the company cannot afford this and is insolvent then you may apply for its compulsory liquidation through court or to apply for it to be “struck off the register” if the company has no assets and liabilities.

Q. What are modes of Winding up a Company in Pakistan?

A. According to Companies Ordinance, 1984 modes of winding up of a company are by the Court, voluntary winding up or winding up subject to the supervision of Court and creditors winding-up.

Q. What is meant by Registered Office?

A Registered office is the official address of your company where the correspondence can be exchanged between the company and his clients.

Q. Can I change my registered office address from Karachi to Lahore?

A. A company can change the place of its registered office from province to province and from place to place in the same province.

When a company intends to shift its registered office from one province to another it must pass a special resolution, obtain confirmation of the change from the Securities and Exchange Commission of Pakistan, file a certified copy of authority’s order together with the altered memorandum with the registrar of both the provinces, notice of new location shall also be given to the registrar and every copy of memorandum and articles of association shall be amended accordingly.

The office of a company may be removed from one place to another within the same province by a special resolution and a notice to the registrar.

Q. What is meaning by unregistered company?

A. Unregistered company means a company, which is not incorporated under the Companies Ordinance, 1984.

Q. Can a Private Limited Company be converted into Public Limited Company?

A. Yes, a private company may convert its status into public limited company by altering its Articles of Association.

Q. Can a Public Limited Company be converted into Private Limited Company?

A. Yes a public limited company can be converted into private limited company subject to the approval of the Securities and Exchange Commission of Pakistan.

Q. Can I convert my Private Limited Company into Single Member Company?

A. Yes, a private company can be converted into a single member company by passing a special resolution for change of its status and make necessary alteration in its articles of association and obtain approval of the Securities and Exchange Commission of Pakistan.

Q. Can Single Member Company be converted into Private Limited Company?

A. Yes, single member company can be converted into private limited company.

Q. Can minor be a director in Private Limited Company?

A. No, minor cannot become a director in private or public limited company.

Q. Can director of a company hold government post?

A. No, director cannot hold any office of profit.

Q. What are the requirements after establishment of place of business by foreign companies in Islamic Republic of Pakistan?

A. As per Companies Ordinance, 1984 Foreign Company incorporated outside Pakistan, is required to file the following documents to the registrar securities and exchange commission of Pakistan concerned within 30 days from the establishment of its place of business in Pakistan;

A certified copy of the charter, statute or Memorandum and Articles of the company accompanied by Form 38. The certification is to be given by:- (a) the public officer in the country where the company is incorporated to whose custody the original is committed or (b) a notary public of the country where the company is incorporated; or (c) an affidavit of a responsible officer of the company in the country where the company is incorporated. The signature or seal of the person so certifying shall be authenticated by a Pakistani diplomatic consular or consulate officer. If the document is not in English, duly certified translation in English or Urdu language is provided

- Address of registered office or principal office of the company, on Form 39;
- Particulars of directors, Chief Executive and secretary (if any) of the company, on Form 40;
- Particulars of principal officer of the company in Pakistan, on Form 41;
- Particulars of person(s) resident in Pakistan authorized to accept service on behalf of the foreign company, on Form 42 along with the certified copy of the appointment order, authority letter of board of directors’ resolution and consent of the principle officer;
- Address of principal place of business in Pakistan of the foreign company, on Form 43.
- Permission letter from the Board of Investment with a specific validity period for opening and maintaining of a branch/liaison office by a foreign company.
- Any change or alteration in particulars stated in the documents and returns filed at the time of registration is required to be filed on form 44 with the registrar concerned within 30 days of such change or alteration. Foreign company is required to file annually with the registrar concerned annual accounts in respect of its operations within Pakistan as well as its global accounts together with the list of Pakistani members and debenture holders and of places of business of the company in Pakistan within the prescribed period. Foreign company is required to submit the renewal/extension of the permission to open/maintain a branch/liaison office from the Board of Investment on the expiry of the validity period of the permission, originally granted. Foreign company is required to give notice on form 46 to the registrar concerned at least 30 days before it intends to cease to have a place of business in Pakistan and to publish a notice of such intention at least in two daily newspapers circulating in the Province or Provinces in which such place or places of business are situated.

Q. What are Additional Directors?

A. Additional directors are those directors who are not required to acquire a share qualification of a director, as they are the nominees of the financial institution who extended the credit facilities to the companies.

Q. Can a body corporate be appointed as a director of a company?

A. No. A body corporate, association or firm cannot be appointed as a director of a company, and only an individual can be appointed as a director of a company as nominee.

Q. How Chief Executive is appointed in a company?

A. All companies are required to appoint a Chief Executive Officer except for a company managed by a managing agent. The first Chief Executive Officer is appointed by the directors of the company at the date of commencement of business or within 15 days from the date of incorporation, whichever is earlier and thereafter within 14 days of the date of election of directors.

Q. What happens if accounts and annual returns of a company not filed in time?

A. Failure to deliver documents on time is an offence under the Companies Ordinance, 1984. On this failure, directors could be prosecuted and penalized.

Q. Can share holders in a Private Limited Company removes a director?

A. Yes, shares holders can remove a director by passing a resolution in a general meeting.

Q. Are shares in a company are transferable?

A. Shares in a company are freely transferable, subject to certain conditions, such that no shareholder is permanently or necessarily wedded to a company. When a member transfers his shares to another person, the transferee steps into the shoes of the transferor and acquires all the rights of the transferor in respect of those shares.

Q. Can a company delegate his powers to any person?

A. Yes. A company may by writing under its common seal, empower any person either generally or in respect of any specified matters as its attorney, to execute deeds on its behalf in any place either in or outside Pakistan and every deeds signed by such attorney on behalf of company and under his seal, where sealing is required shall bind the company and have the same effect as if it were under its common seal.

Disclaimer: The information available above is not intended to be comprehensive, and many details which may be relevant to particular circumstances have been omitted. Accordingly, it should not be regarded as being complete source of company law information, and web users are advised to seek independent professional advice before acting on anything contained herein. AMLAW will not take any kind of responsibility for the consequences of errors or omissions.

Pakistan Property & Real Estate FAQs

amlaw — Wed, 21 Apr 2010 16:48:57 +0000

Following are Frequently Asked Questions (FAQs) about Property and Real Estate in Pakistan. For property & real estate legal advise & consulting, please visit our Pakistan Property & Real Estate Laws page.

Q. What is Aks-Shajra?

A. Aks-Shajra means image of a specific piece of land/specific khasra number from the map/plan of an estate or village defining its boundaries.

Q. What is meant by Fard Malkiat?

A. Fard Malkiat also known as (Record of Rights/ Jama Bandi/Misal Haquiat/ Register Haqdaran-e-Zameen) maintained for determination/record of various types of rights in the immovable property.

Q. What is Mutation (Intiqal)?

A. Mutation is a document containing an order by a revenue officer; who must be at least an Assistant Collector of grade III, whereby an entry in the record of rights is to be altered, changed or mutated in revenue record.

Q. What is meant by Tattima Registry?

A. Tattima means “supplementary” and Tattima Registry means supplementary sale deed in specified area.

Q. What is meant by Khasra?

A. Khasra is a piece of land with specific measurements and a specific number.

Q. What is Khasra Garrdwari?

A. Register Kharsa Gardwari is a register maintained for record of possession/cultivation.

Q. What is meant by Survey?

A. A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.

Q. Is mutation is a title document?

A. No, mutation is not a title document.

Q. What is the name of the document, which creates title in immovable property?

A. Register Sale Deed (Registry /Baye-Nama) is a document, which creates a title in the immovable property.

Q. What is meant by Conveyance Deed or Sale Deed?

A. Conveyance Deed or Sale Deed is a deed document by which the title of property is conveyed by the seller to the purchaser. Conveyance is the act of transferring ownership of the property from a seller to the buyer. Deed document will help you ascertain whether the property, which you are buying, is on land belonging to any development authority, society, builder in which the property is located, whichever the case may be.

Q. From where I can obtain my house documents or title deeds of my property?

A. You can obtain your house documents or title deed documents from office/department by which title of the house was conferred or transferred.

Q. What laws generally deal with real estate in Pakistan?

A. Among the laws, which deal with real estate in Pakistan, are The Transfer of Property Act, 1882, Land Revenue Act, 1967, Stamp Act, 1899 and Registration Act, 1908.

Q. What safety precautions should I take before buying property or real estate in Pakistan?

A. Before buying property in Pakistan a complete and thorough probe in respect of title of the seller to the real estate must be carried out. A general practice is to investigate title of the current seller and any previous owner. Original title document in favor of the vendor must be obtained along with other relevant documents including mutation in favor of the vendor, a fresh copy of fard, aks shajra and no-objection certificate or non-encumbrance certificate as the case may be. If the vendor is selling the property in the capacity of an attorney of the owner then it must be ensured that the power of attorney is duly registered with the relevant sub-registrar. A holder of a forged and fabricated power of attorney is not at all able to transfer a valid title in an immovable property to a third party.

Q. In name of a Company, property is registered before purchasing it, what documents should I inspect?

A. Before purchasing property from a company you should verify from the Registrar of Companies at Securities & Exchange Commission of Pakistan that the property is not mortgaged or is not being used as a security against a loan, otherwise it will not be considered as a freehold property. In addition, check memorandum of association that who is authorized to act on behalf of company for selling the property, if resolution is required then the same must be passed and verified. Further, inspect original title documents from the selling company.

Q. Can corporate bodies use residential properties as office space?

A. It is illegal to put residential properties to commercial use. However, service-based industries are allowed to operate from residential areas.

Q. Can foreigners buy Property in Pakistan?

A. Yes, foreigners can buy property in Pakistan but after completing all legal formalities.

Q. What inheritance laws apply in Pakistan?

A. Inheritance laws in Pakistan depend on religious affinities, Muslim Personal Laws for the Muslims and persons other than Muslims their personal laws.

Q. Is transfer of every immovable Property needs registration in Pakistan?

A. Transfer in the case of immovable property of the value of Rs 100/- and upwards only be made by a registered sale deed.

Q. An overseas Pakistani without visiting Pakistan can buy Property?

A. Yes, without coming to Pakistan an overseas Pakistani can buy property in Pakistan.

Q. What are the documents required to legally own a house?

A. Any deed verifying transfer in your favour i.e. sale deed, allotment letter and sale certificate.

Q. How do I own a house?

A. You can own house by purchasing from a private person, private builder, by allotment or purchase from public authority i.e. any development authority (LDA, CDA, FDA, MDA etc.) and by becoming member of any co-operative housing society.

Q. What is Power of Attorney?

A. Power of Attorney is the power given to an agent by the principal to execute several acts and deeds for and on behalf of the principal. A power of attorney may also be given by a person to another to appear before any Court, Tribunal and Authority, buy sell, maintain real estate etc. When power is given in respect of a number of acts in a number of transactions, it is called General Power of Attorney and when power is given in respect of a particular act pertaining to one transaction; it is called Special Power of Attorney. General Power of Attorney must be registered.

Q. Person holding Power of Attorney can transfer property in his name?

A. No. The person who is holding Power of Attorney has a fiduciary duty to act in your interest and try to do what you would do for yourself if you were able. Third parties will presume the person is acting on your behalf.

Q. Can I revoke my Power of Attorney?

A. Yes.

Q. When would a Power of Attorney gets cancelled?

A. Power of Attorney automatically gets cancelled on the death of Executants’ and when get cancelled by the Executants’.

Q. Is my Power of Attorney effective after I die?

A. No, Power of Attorney will ends upon your death.

Q. I am going to buy a flat in a building under construction, what are the papers should I check?

A. Check approved plan of the building along with the number of floors; ensure that the floor that you are buying is approved. Check if the land on which the builder is building is his or he has undertaken an agreement with a landlord. If so, check the title of the land ownership. Check the building byelaws as applicable in that area and ensure that the building is without any violation of front setback, side setbacks, height, etc. Check specifications given in the agreement to sell and that given in the brochure and see if he is providing the same actually on the ground or not. If the builder is a company incorporated with Securities & Exchange Commission of Pakistan, it may be checked that the company is allowed to do the business of sale and purchase of real estate.

Q. Can immovable property be sold while it is mortgaged?

A. No, immovable property cannot be sold.

Q. What are important documents one should check before buying any property?

A. Check approved layout plan, approved building plan, ownership documents, ask for all the deeds of title related to the property to be purchased, examine the deeds, ascertain the survey number, check previous encumbrances and loans, if any, on the property, request vendor(seller) to obtain, if applicable, consent permission, sanction, no objection certificate of various authorities, tax receipts and bills, measure the land etc.

Q. What is stamp duty and who is liable to pay the stamp duty, the buyer or seller?

A. Stamp duty is a fee/tax levied by the government on transfer of property and must be paid in full and on time. A stamp paid document considered proper and legal document. The liability of paying stamp duty is that of the buyer unless there is any commitment to the contrary.

Q. How to get approved building plan and why it is necessary.

Raising construction without having a building plan approved from the concerned agency is a violation of rules of the concerned Building Control Authority and can lead to demolition of construction. Therefore, for all practical purposes i.e. before raising construction approval for the same is mandatory.

Q. In Pakistan who maintains Land Record?

A. In Pakistan land records are maintained by district administration revenue department for deciding ownership and boundaries of land or property.

Q. I am a co-sharer in a property can I sell the said property?

A. Yes, you can sell the property but only to the extent of your share in the property and without specific boundaries unless consented expressly by the other co-sharer or co-sharers.

Q. Whether a sale deed drafted by a Wasiqa Nawees/Arzi Nawees is reliable?

A. No, sale deed must be drafted by a lawyer having knowledge of the relevant laws regarding transfer of property.

Q. What are essentials of Gift?

A. Essentials of gift are 1. Offer by the Donor (owner) 2. Acceptance by the Donee (to whom gift is being made) and 3. Delivery of possession.

Q. Can gift be revoked?

A. Yes, gift can be revoked except if made in favor of a person who falls in prohibited degree i.e. a person with whom marriage cannot be contacted.

Q. What are distinguishing features of gift from those of will?

A. Gift always can be made in the lifetime and it become effective at the very moment when it is complete, whereas will only can take effect after death of its maker. Other distinguishing feature is that an owner of property can make gift of his entire property in favor of a legal heir of him/her in his life time but he cannot make a will whereby the whole property is intended to be given to one legal heir. He/she can make will to the extent of 1/3rd of his/her holding in favor of any who is not legal heir and if made in favor of a legal heir then requires agreement/consent of other legal heirs.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice.

For competent & detailed legal advice please contact us.

Property & Real Estate Law

amlaw — Thu, 22 May 2008 15:09:59 +0000

AMLAW is involved in providing services and assistance to our valued clients in buying and selling of both movable and immovable properties & real estate in Pakistan. We also provide our services to facilitate the required permissions, etc. for setting up various industries, factories, commercial complexes, industrial and residential estates, etc. across Pakistan.

AMLAW offers a broad spectrum of services in property & real estate in Pakistan including following:

Investigate & verify title documents of the property
Investigate & verify mutation in favor of the vendor
Obtain a fresh copy of Fard (فرد) from relevant sub-registrar
Obtain a certified copy of Aks-Shajra (map)
Obtain a certified copy of Tatima/Supplementary Map of the property
Demarcation details
Drafting of the documents
Registration of conveyance deed
Transfer of title
Entries in relevant government record
Obtain a NOC, if necessary
Verification of the Power of Attorney of the vendor, if any
Verification of other documents e.g lease deeds, mortgage deeds, gift deeds etc., if any

Please do not hesitate to contact us for any property or real-estate related legal services in Pakistan.

Business Setup: Sole Proprietorship

amlaw — Thu, 15 Jan 2009 10:37:21 +0000

In a Sole Proprietorship business in Pakistan, an individual on his/her own account carries out the business or profession. The business assets of the sole proprietor are legally treated as his own. No formal procedure or formality is required for setting up a sole proprietary concern in Pakistan nor prior registration of it is required from any government authority or department.

Please Contact Us for further consultation.

Contact Us

amlaw — Sun, 04 Nov 2007 14:13:33 +0000

AMLAW Advocates & Legal Consultants
120-E/1, Hali Road, Gulberg III, Lahore, Pakistan.

Contact: Muhammad Tanssir Hafeez, Advocate & Legal Consultant
Telephone: +92.42.7060127
Mobile: +92.31.44191234
E-mail: info@amlaw.pk

amlaw — Thu, 15 Jan 2009 11:36:25 +0000

AMLAW is a firm comprising experienced, competent & dedicated group of professionals. We provide legal and business consultancy as per international standards and litigation under one roof across all courts & related organizations in Pakistan.

Our team consists of qualified lawyers and business consultants. We have the knowledge and resources to deliver a broad scope of quality legal services required to both national and international clients. We provide legal services to local organizations, companies, individuals as well as global and multinational companies.

The firm has dealt with almost all the areas of civil and criminal laws particularly the up coming fields of Intellectual Property Rights (IPR), World Trade Organization (WTO), Sales and Excise Tax (ST), Information Technology (IT) Rights and Liabilities apart from the conventional civil and criminal practice including cases under Companies and Banking law, Building and Engineering Contracts, Arbitration, Environment etc.

NGO/NPO Registration in Pakistan

amlaw — Sat, 03 Oct 2009 16:49:17 +0000

AMLAW provides comprehensive legal services to non-profit organizations and associations in the Islamic Republic of Pakistan. We provide services to businesses, institutions, educational, social, religious, individuals and families seeking to accomplish non-profit objectives. In Pakistan there are numbers of laws for registration of non-profit organizations including the prominent Acts and Ordinances as The Societies Registration Act, 1860, The Trusts Act, 1882, Registration of non-profit Companies under section 42 of the Companies Ordinance, 1984, The Co-operative Societies Act, 1925, Trade Organisations Ordinance, 2007, Non-Profit Public Benefit Organisations (Governance and Support) Act, 2003, Mussalman Waqf Act, 1923, Charitable Endowments Act, 1923.

AMLAW offers a broad spectrum of legal services to NPOs in Pakistan including following:

Registration of Non-profit Organizations/Non Governmental Organisations
Preparation of documents
Advising non-profit board members of their duties & responsibilities
Advising individuals and entities with respect to charitable giving matters
Advising NPO’s in obtaining tax exemptions
Representing & defending all types of NPO’s in mediation, arbitration, litigation & similar matters
Advising on real estate transactions, environmental etc. issues
Advice NGO’s in their fund raising efforts
Advising on Intellectual property issues, applying for and protecting copyrights or trademarks and obtaining licenses to use copyrighted materials
Drafting of employment agreements
Dissolution of NPOs/NGOs

You may also want to review details pertaining to laws related to NGOs/NPOs in Pakistan.

Please contact AMLAW for any matter related to non-profit organisations in Pakistan.

Laws related to NGOs / NPOs in Pakistan

amlaw — Sat, 03 Oct 2009 17:06:36 +0000

In the Islamic Republic of Pakistan there are numbers of laws for registration of non-profit organisations including the prominent Acts and Ordinances as The Societies Registration Act, 1860, The Trusts Act, 1882, Companies Ordinance, 1984, The Co-operative Societies Act, 1925, Trade Organisations Ordinance, 2007, Non-Profit Public Benefit Organisations (Governance and Support) Act, 2003, etc.

The Societies Registration Act, 1860

Societies or NPO’s which are registered under The Societies Registration Act, 1860 are for the promotion of literature, science or the fine arts or for the diffusion of useful knowledge, the diffusion of political education or for charitable purposes. Any seven or more persons associated for any literary, scientific, charitable purpose, the diffusion of useful knowledge, the foundation or maintenance of libraries or reading rooms for general use, public museums, galleries of paintings or works of art, collections of natural history, mechanical and philosophical inventions, instruments or designs, management, overseeing, monitoring and providing supervisory cover to local institutions such as primary schools, middle schools, high schools, dispensaries, basic health units and rural centres and other health institution, population welfare facilities, water supply and sanitation faculties may form themselves into a society under the Act subscribing their names to a memorandum of association filing the same with the Registrar of Societies.

The Trust Act, 1882

A public charitable trust is a trust which is created for the benefit of society generally or for certain sections of society. The said Act extends to the whole of Pakistan but nothing contained in the Act affects the rules of Muslim law as to waqf. A waqf under Muslim law is generally made with a pious, charitable or religious purpose. As a Trust property vests in Trustees, but waqf property vests in Almighty Allah. A trust may be created for any lawful purpose like advancement of religion, advancement of knowledge, advancement of health and safety of public, advancement of any other beneficial to making etc. The purpose of a trust is lawful unless it is forbidden by law, or is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies injury to the person or property of another, or the Court regards it as immoral or opposed to public policy. According to the Trust Act, 1882, no trust in relation to immovable property is valid unless declared by a non-testamentary instrument in writing signed by the author of the trust or the trustee and registered, or by the will of the author of the trust or of the trustee and Trust in relation to movable property is valid unless declared as aforesaid, or unless the ownership of the property is transferred to the trustee. A Trust may be established by a deed of settlement and rules there-under under the Trusts Act, 1882.

Company not for profit under Companies Ordinance, 1984

Associations not for profit are formed under section 42 of the Companies Ordinance, 1984 the said ordinance envisages two types of associations established for non-profit basis. An Association not for profit is an organization formed for the purpose of serving public or for mutual benefit other than pursuit of benefits. According to Section 42 of the Companies Ordinance, 1984 the main objects of the Association are for promoting commerce, art, science, religion, sports, social services, charity or any other useful object, and applies or intends to apply its profits, if any, or other income in promoting its objects. The Association shall on registration enjoy all the privileges of a limited company and be subject to all its obligations, except those of using the words Limited, Private Limited or Guarantee Limited. To get registered an Association for non-profit purposes first is to obtain license under Section 42 of the Ordinance from Securities & Exchange Commission of Pakistan and thereafter to register the Association as a company. The association is generally a guarantee limited company having no share capital.

Trade Organisations Ordinance, 2007

The said ordinance extends to whole of Pakistan for the registration and regulation of trade organisations. No trade organisation shall be registered under the Ordinance or such other law unless it holds a license granted by the Federal Government authorizing it to be so registered. A trade organistaion holding a license shall be registered under the ordinance as a company with limited liability.

The Co-operative Societies Act, 1925

This Society is a form of organisation where persons join together voluntarily on a basis of equality of a common economic need.

Non-profit Public Benefit Organisations (Governance and Support) Act 2003

The said Act extends to the whole of Pakistan to provide for governance and support of non-profit public benefit organisations. Whereas non-profit public benefit organisations engaged in diverse fields, including social welfare, development, research, rights awareness and advocacy, are making significant contributions to the social and physical capital of the country, it is desirable that an enabling legislative framework be provided that promotes transparency and strengthens the capacity of such organisations while respecting the right of free association in the furtherance of lawful. The Act defines “Public Benefit Organisation” includes a society, agency or any other association of persons, natural or juristic, not controlled by any government, by whatever name described that is nonprofit, voluntary and is set up for one or more public benefit purposes and includes local branches of foreign organisations but excludes such foreign organisations operating in Pakistan to whose charter Government of Pakistan is a signatory or where a protocol exists between the Government of Pakistan and an organization. According to section 28 of the said ActThe Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (XLVI of 1961) is repealed.

AMLAW offers a broad spectrum of legal services to NGOs/NPOs in Pakistan including registration with relevant Government authorities.

Electronic / Cyber Crimes Ordinance Promulgated in Pakistan

amlaw — Wed, 10 Dec 2008 12:10:52 +0000

The new law “Prevention of Electronic Crimes Ordinance, 2008″ (same as Prevention of Electronic Crimes Ordinance, 2007) is in force now, which was promulgated by the President of Pakistan. The “Prevention of Electronic Crimes Ordinance, 2008″ extends to the whole of Pakistan.

The “Prevention of Electronic Crimes Ordinance, 2008″ will apply to every person who commits an offence under the said Ordinance irrespective of his nationality or citizenship whatsoever or in any place outside or inside Pakistan, having detrimental effect on the security if Pakistan or its nationals or national harmony or any property or any electronic system or data located in Pakistan or any electronic system or data capable of being connected , sent to, used by or with any electronic system in Pakistan.

The ordinance i.e. “Prevention of Electronic Crimes Ordinance, 2008″ gives exclusive powers to the Federal Investigation Agency (FIA) to investigate and charge cases against such crimes.

The ordinance covers provision for illegal and criminal acts such as data access, data damage, system damage, electronic fraud, electronic forgery, spamming, spoofing, cyber terrorism etc.

Chapter II of the “Prevention of Electronic Crimes Ordinance, 2008″ deals with the Offences and Punishments. Punishments range from two years to death penalty. For the general guidance offences and punishments are mentioned below:

Section 3 of the “Prevention of Electronic Crimes Ordinance, 2008″ deals with criminal access: The said section states

Criminal Access: Whoever intentionally gains unauthorized access to the whole or any part of an electronic system or electronic device with or without infringing security measures, shall be punished with imprisonment of either description for a term which may extend to two years or with fine not exceeding three hundred thousand rupees, or with both.

Criminal Data Access is an Offence and Punishable.

Section 4 of the” Prevention of Electronic Crimes Ordinance, 2008“, states,

Criminal data access: Whoever intentionally causes any electronic system or electronic device to perform any function for the purpose of gaining unauthorized access to any data held in any electronic system or electronic device or on obtaining such unauthorized access shall be punished with imprisonment of either description for a term which may extend to three years or with fine or with both.