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NPO registration in Pakistan as a section 42 not-for-profit company — SECP licence, requirements, process, foreign donor clearance and compliance.
Last updated 30 October 2026
Speak with our professional team about NPO Registration in Pakistan and schedule an appointment. Contact our team to confirm the appropriate office city and appointment arrangements. Office directions are shared via WhatsApp when your appointment is confirmed.
Call +92 333 1127834Corporate Legal Team
Senior Corporate And Taxation Lawyer
40+ Years Of Professional Legal, Tax And Corporate Experience
Syed Mohsin Ali Shah provides senior review for company structures, SECP filings, shareholder and director matters, corporate taxation, business documentation and higher-risk corporate issues across Pakistan.
Professional Profile
Advocate · Corporate Taxation Consultant
10+ Years Of Professional Tax And Corporate Experience
Sobia Mohsin assists with company-registration documentation, corporate taxation consultation, post-incorporation compliance review and professional coordination for business clients across Pakistan.
Professional ProfileNPO registration in Pakistan through SECP begins with a licence under section 42 of the Companies Act, 2017. The first step is to settle the organisation's not-for-profit objects, its subscribers and directors, and how it will be funded. Only then can the memorandum and articles be drafted and the licence application be assessed responsibly.
Speak to our team on 0333 1127834 before drafting the memorandum — SECP reads the objects first.
WhatsApp or call 0333 1127834 to discuss NPO registration in Pakistan with our SECP team.
In the corporate sense, NPO registration in Pakistan means forming a not-for-profit company licensed by the Securities and Exchange Commission of Pakistan (SECP) under section 42 of the Companies Act, 2017. Section 42 requires an association formed for a lawful charitable or not-for-profit purpose to obtain a licence from SECP before it can be incorporated as a company. The current procedure is read with regulations 4 and 5 of the Companies Regulations, 2024. Such a company must apply its income and profits only to its objects and cannot pay dividends or distribute profits to its members.
The section number has not changed. Under the repealed Companies Ordinance, 1984, not-for-profit associations were also licensed under section 42, read with rule 6 of the Companies (General Provisions and Forms) Rules, 1985. The Companies Act, 2017 kept the same section number, so older documents that refer to "section 42" remain relevant, although the procedure and regulations have since changed.
| Point | Section 42 company (NPO) | Society / social welfare agency | Trust |
|---|---|---|---|
| Law | Companies Act, 2017, section 42 | Societies Registration Act, 1860 / Ordinance, 1961 | Provincial Trusts Act, 2020 |
| Regulator | SECP (federal) | Provincial registrar / Social Welfare Department | Provincial trusts registrar |
| Control | Board of directors and members | Elected managing committee | Named trustees |
| Scope | National | Provincial base | Provincial base |
| Reporting | Highest — audited accounts and statutory returns | Moderate | Moderate |
| Donor perception | Strongest for institutional and foreign donors | Good | Good |
For provincial routes, see our NGO registration in Pakistan and trust registration in Pakistan guides.
NPO registration in Pakistan under section 42 suits organisations that need formal corporate governance and credibility with large donors. It is usually the right choice for:
SECP states that three or more persons may form a company, so NPO registration in Pakistan needs at least three subscribers to the memorandum and articles of association. The application follows the format, checklist and enclosures set out in the Companies Regulations, 2024. In practice the file for NPO registration in Pakistan includes:
| Step | What happens |
|---|---|
| 1. Structure review | We confirm that a section 42 company is the right route and settle objects, subscribers and directors. |
| 2. Name reservation | Proposed name reserved with SECP. |
| 3. Drafting | Memorandum and articles drafted with not-for-profit objects and non-distribution clauses. |
| 4. Licence application | Application for NPO registration in Pakistan filed with SECP under section 42 with the prescribed enclosures. |
| 5. Scrutiny and clearance | SECP review, follow-up on observations, and security clearance where foreign donors or directors are involved. |
| 6. Licence and incorporation | Licence granted; the company is then incorporated and receives its certificate. |
| 7. Post-incorporation | NTN, bank account, statutory registers and first filings; provincial charity enlistment where funds are raised in a province. |
The licence stage is the longest part of NPO registration in Pakistan, because SECP reviews the objects, the people behind the organisation and its funding plan before incorporation.
SECP's filing fees for NPO registration in Pakistan are prescribed by the Commission and confirmed at the time of filing. Our professional fee for NPO registration in Pakistan is fixed for standard cases; cases with foreign donors or directors, conversions and annual retainers are quoted after review.
| Service | Scope | Professional fee |
|---|---|---|
| Documentation only | Name, memorandum and articles, licence application and enclosures prepared; filing follow-up by the client | PKR 75,000 |
| Complete service and support | Structure advice, documentation, licence application, SECP follow-up through to licence and incorporation | PKR 150,000 |
| Foreign donor / director cases | Additional documentation and security clearance follow-up | Quoted on review |
| Conversion of an existing NGO or trust | Review and transfer of an existing organisation into a section 42 company | Quoted on review |
| Annual compliance retainer | Annual return, audited accounts, board minutes and SECP filings | Quoted on review |
A section 42 company carries continuing duties after NPO registration in Pakistan:
Because section 42 is a federal SECP route, we handle NPO registration in Pakistan for organisations based anywhere in Pakistan, including Karachi, Islamabad, Rawalpindi, Lahore, Hyderabad and Faisalabad.
Reviewed by: Syed Mohsin Ali Shah, Senior Advocate
Published by: Taxocrate (Pvt) Limited
Last updated: 30 October 2026
Section 42 of the Companies Act, 2017, read with the Companies Regulations, 2024. The repealed Companies Ordinance, 1984 also used section 42 for not-for-profit associations.
The Securities and Exchange Commission of Pakistan (SECP) grants the section 42 licence before the company is incorporated.
At least three subscribers to the memorandum and articles of association.
No. Its income and profits must be applied only to its objects, and no dividend may be paid to members.
No. Approval as a non-profit organisation under section 2(36) of the Income Tax Ordinance, 2001 is a separate application to FBR.
Security clearance is required for foreign donors and foreign directors under SECP's framework for not-for-profit companies.
Yes, an existing organisation can be restructured as a section 42 company, but its assets, donors and governance need to be reviewed first.
Our professional fee is PKR 75,000 for documentation only and PKR 150,000 for complete service and support through to incorporation. SECP fees are charged separately as prescribed.
No. It is a federal structure and can operate across Pakistan, subject to any provincial charity requirements where it raises funds.
