Build a compliant, transparent and sustainable nonprofit organisation
Formation, governance, taxation, donor reporting and operational support for charities, foundations, associations and social-impact organisations in Pakistan.
Choose the right nonprofit structure
Nonprofit and charitable activities in Pakistan may be organised through a Section 42 company, society, trust, social-welfare agency or another structure permitted by the applicable federal or provincial law. The appropriate form depends on the organisation’s objects, geographic scope, funding sources, governance model and intended tax treatment.
A Section 42 company is licensed by the Securities and Exchange Commission of Pakistan before incorporation. Its income and profits must be applied toward its stated not-for-profit objects and cannot be distributed to members as dividends.
Section 42 company
A formal SECP-licensed company structure for charitable and other not-for-profit objects, with corporate governance and continuing filing obligations.
Society
A membership-based structure often used for education, welfare, culture, professional and community purposes, subject to the relevant registration authority.
Trust
A trustee-based structure used to hold and administer assets or funds for stated charitable purposes.
Social-welfare agency
A voluntary-welfare registration route governed by the relevant federal or provincial framework.
SECP licensing, incorporation and continuing compliance
CBMC assists with the proposed name, objects, promoter information, constitutional documents, governance arrangements, licence application, incorporation and post-incorporation registrations. We also support annual returns, statutory records, financial statements, audit coordination, board documentation and compliance with licence conditions.
Pre-application review
Review of objects, promoters, governance, expected funding, operating model and documentation readiness.
Licence application
Preparation and review of required applications, declarations, profiles, undertakings and constitutional clauses.
Incorporation support
Company registration after licence approval, followed by tax and operational registrations.
Compliance calendar
Board meetings, annual filings, financial statements, audit, licence renewal and other recurring requirements.
FBR compliance, section 100C and PCP certification
Legal registration and tax recognition are separate processes. Formation as a Section 42 company, society, trust or welfare agency does not automatically provide exemption or a tax credit.
Eligible organisations may seek the tax treatment available to nonprofit organisations under the Income Tax Ordinance, 2001, including section 100C, subject to the conditions, approvals, filing obligations, application-of-income rules and restrictions applicable at the relevant time.
The Pakistan Centre for Philanthropy (PCP) is designated by the Federal Board of Revenue as a certification agency. PCP certification assesses governance, financial management and programme delivery. Certification can support credibility and the relevant NPO-status process, but final tax recognition and treatment remain governed by FBR law, approvals and continuing compliance.
FBR registration and returns
NTN, annual income-tax returns, withholding statements, reconciliations and response to notices.
Section 100C readiness
Eligibility assessment, review of governing documents, application of funds, spending conditions and annual evidence.
PCP certification support
Readiness review, governance records, policies, financial information, programme evidence and certification coordination.
Donor tax documentation
Supporting records, utilisation reports, confirmations and reconciliations required by donors and regulators.
Protect the mission, funds and public trust
CBMC helps establish practical controls suited to the organisation’s scale, funding and risk profile.
Board governance
Board calendars, agendas, minutes, committees, reserved matters and conflict-of-interest declarations.
Financial controls
Budgets, delegated authority, procurement, banking, payments, expenses and asset safeguards.
Grant management
Restricted-fund accounting, project budgets, cost allocation, utilisation reporting and donor conditions.
Policies and risk
Anti-fraud, whistleblowing, safeguarding, data protection, risk registers and incident escalation.
Produce transparent, donor-ready financial information
We provide bookkeeping, chart-of-accounts design, fund and project accounting, management reporting, payroll, year-end accounts and audit support. Reports may be structured by donor, programme, grant, location, funding restriction and cost centre.
Fund accounting
Separate unrestricted, restricted, designated and project funds with clear audit trails.
Management reports
Budget comparisons, programme spending, cash flow, grant balances and management dashboards.
Audit support
Schedules, confirmations, reconciliations, supporting records and control documentation.
Payroll and HR records
Contracts, attendance, payroll calculations, deductions, benefits and personnel documentation.
Current-law verification
This page is general information and not a legal opinion, tax ruling or confirmation of NPO status. Requirements vary by legal form, jurisdiction, activities, funding and current law. CBMC verifies the current SECP, FBR, PCP and relevant provincial requirements before undertaking an engagement.