A practical comparison of common nonprofit legal structures in Pakistan.
Society
A society is a membership-based structure. For Islamabad, ICT Administration publishes the procedure under the Societies Registration Act, 1860 and currently requires at least 20 members including at least seven office bearers, together with constitutional and office records.
Voluntary social welfare agency
ICT Administration also publishes a separate registration route for voluntary social welfare organisations. The required Form B, constitution and registration record differ from the society route even where the organisation’s activities may be similar.
Trust
A trust is structurally different from a membership-based society. The appropriate trust law depends on jurisdiction, and the proposed trustees, property arrangements and charitable objects should be considered before the trust instrument is finalised.
Section 42 company
A Section 42 company is a corporate not-for-profit structure regulated by SECP. SECP states that the Section 42 licence must be obtained before incorporation and that income or profits must be applied to the approved objects rather than distributed to members.
How to choose
The structure should follow the organisation’s objects, governance, founders, geographic scope and expected funding. See NPO Registration and NGO / NPO Registration in Islamabad.
Official references
General information only. It is not legal advice for a specific organisation or matter. Laws, policies, forms and regulator procedures can change; the current official position should be checked before action is taken.