ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) will not issue registration certificates of “not-for-profit associations” (NPO) to the International Non-Governmental Organizations (INGOs) under the regulation policy of the INGOs.
The SECP has issued S.R.O.1221(I)/2024 to amend Companies Regulations, 2024 here on Saturday.
Previously, the draft amendments to the Companies Regulations, 2024.was circulated vide notification S.R.O. 882(I)/2024 dated May 23.
SECP will not issue registration certificate of ‘NOP’ to INGOs
The International Non-Governmental Organizations (INGOs) will not be eligible to be registered with the Commission as a “not-for-profit association” (NPO) in accordance with the Policy of the Federal Government for regulation of (INGOs) in Pakistan.
Under the 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.
In table of applications, the SECP has added two new applications i.e. Application for Change in Chief Executive Officer/Directors of a Company Licensed under Section 42 of the Act and Application for Change in Object Clause of Memorandum of Association of a Company Licensed under Section 42 of the Companies Act.
Copyright Business Recorder, 2024
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