NGO Registration with SECP License 42: A Path to Credibility and Compliance
Starting a non-governmental organization (NGO) in Pakistan is a powerful way to make a positive impact on society. However, to operate legally and access institutional funding, NGOs must be registered under the appropriate legal framework. One of the most credible and effective ways to establish an NGO is through License 42 from the Securities and Exchange Commission of Pakistan (SECP). At PCP Adviser we provide end-to-end support for NGO registration under SECP License 42, ensuring a smooth and compliant process.
What is SECP License 42?
SECP License 42 is a certification under Section 42 of the Companies Act, 2017, allowing the formation of Not-for-Profit Companies. These organizations operate with a focus on charitable, social, educational, or cultural objectives rather than profits.
An NGO registered under License 42 is recognized as a legitimate non-profit company, enhancing credibility and access to funding opportunities.
Benefits of Registering with SECP License 42
- Legal Recognition: Your NGO is recognized as a legal entity with a formal corporate structure.
- Enhanced Credibility: Builds trust with donors, partners, and stakeholders.
- Access to Funding: Many national and international donors prefer organizations with SECP License 42.
- Tax Benefits: Eligible for tax exemptions under Section 2(36) of the Income Tax Ordinance, 2001.
Key Requirements for SECP License 42
To obtain SECP License 42, your NGO must meet specific criteria, including:
1. Organizational Structure
- A Board of Directors with at least three members, including professionals with relevant expertise.
- Clearly defined roles and responsibilities for directors and officers.
2. Legal Documentation
- Memorandum and Articles of Association, outlining the objectives, governance, and operational framework of the NGO.
- Proof of the Registered Office Address.
3. Financial Viability
- A minimum initial capital requirement, typically PKR 200,000, as seed money.
- Submission of a Business Plan demonstrating the financial sustainability of the NGO.
4. Governance and Compliance
- Details of the proposed programs and projects, including expected outcomes.
- Establishment of proper accounting and auditing mechanisms to ensure transparency.
How We Help with SECP License 42 Registration
At PCP Adviser we specialize in guiding NGOs through the entire SECP License 42 registration process:
- Document Preparation: Assistance in drafting the Memorandum and Articles of Association, business plan, and required forms.
- Application Submission: We handle the application process with SECP, ensuring all legal and regulatory requirements are met.
- Compliance Management: Our experts provide guidance on maintaining compliance post-registration, including annual reporting and audits.
- Advisory Services: We offer strategic advice to help your NGO achieve its mission effectively and sustainably.
Take the First Step Towards Legal Compliance Today!
Obtaining SECP License 42 can transform your NGO’s operations, providing a solid legal foundation and enhanced credibility. Let our experienced team help you navigate the process seamlessly.
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