SECP Registration (Section 42 Company)
In Pakistan, most reputable foundations are registered under Section 42 of the Companies Act, 2017. This gives your foundation the status of a limited liability company without the “Limited” suffix, adding professional prestige and institutional permanence.

• Licensing: Handling the application for a license from the SECP to operate as a non-profit.
• Documentation: Drafting the Memorandum and Articles of Association tailored to your specific charitable goals.
• Compliance: Ensuring all promoters meet the “Fit and Proper” criteria required by the commission.

FBR Tax Exemptions (NPO Status)
A foundation’s success often depends on its ability to maximize resources. We bridge the gap between registration and tax efficiency.

• 100% Tax Credit: Assisting in the application for NPO status under Section 2(36) of the Income Tax Ordinance.
• Donation Approvals: Helping your foundation obtain approval under Section 61, allowing your donors to claim tax credits on their contributions—a vital tool for fundraising.
• NTN: Handling basic tax registration and ongoing filing requirements.

Since the 18th Amendment, “charity” is a provincial subject. Even if you are registered with the federal SECP, you must register with the Charity Commission of each province where you intend to have an office or conduct activities.

Note: If you plan to work nationwide, you will essentially need to register on the online portals of all four provinces plus Islamabad. These commissions monitor your “Collection of Funds” (donations) and ensure they are spent on the declared objectives

While SECP and FBR provide the legal and tax framework, PCP Certification is the mark of excellence that separates high-impact organizations from the rest. At CBM Consultants, we assist NPOs in navigating the rigorous evaluation process of the Pakistan Centre for Philanthropy (PCP) to unlock institutional funding and enhanced tax benefits.

Why Pursue PCP Certification?

PCP is the only FBR-authorized agency for the performance evaluation of NPOs in Pakistan. Obtaining this certification provides:

• Donor Confidence: It acts as a “seal of approval” for local and international donors, proving your organization is transparent and well-governed.
• FBR Tax Exemptions: Certification is a key requirement for obtaining long-term tax credits under Section 100C and Section 2(36) of the Income Tax Ordinance.
• Global Recognition: Your organization is listed in the PCP Directory, making you visible to the global philanthropic network.

Our Comprehensive PCP Consultancy Services

The PCP evaluation is exhaustive, covering three main pillars. We ensure your foundation is prepared for each:

• Internal Governance: * Reviewing Board of Directors/Trustees composition.
• Formalizing minutes of meetings and policy manuals (HR, Procurement, Gender, etc.).
• Financial Management: * Ensuring financial statements are audited by reputable external firms.
• Verifying internal controls and transparent fund utilization.
• Program Delivery: * Documenting the measurable impact of your charitable activities.

In Pakistan, registration with theEconomic Affairs Division (EAD) is not a “choice”—it is a mandatory legal gateway for any foundation or NGO that wants to operate using international resources.

The Legal Mandate (Foreign Funding)

Under the“Policy for Regulation of Organizations Receiving Foreign Contribution,” any foundation intending to utilize foreign aid, donations, or materials must sign a Memorandum of Understanding (MoU) with the EAD.

• Without an EAD MoU: You cannot legally receive money from an international donor into your foundation’s bank account.

• Banking Restrictions: In 2026, Pakistani banks are under strict “Anti-Money Laundering” (AML) and “Counter-Terrorism Financing” (CTF) protocols. Banks will freeze or reject incoming foreign remittances if they are not backed by an active EAD-approved project.