NGO Formation & Regulatory Authorities in Bangladesh<\/title> <script src=\"https:\/\/cdn.tailwindcss.com\"><\/script> <\/p>\n<style> \/* Custom styles for the Inter font and overall page aesthetics *\/ body { font-family: 'Inter', sans-serif; background-color: #f3f4f6; \/* Light gray background for a clean look *\/ color: #374151; \/* Darker gray text for readability *\/ line-height: 1.6; \/* Improved line spacing *\/ } \/* Styling for headings to ensure visual hierarchy and prominence *\/ h1, h2, h3, h4 { color: #1f2937; \/* Even darker gray for headings for strong contrast *\/ margin-bottom: 1rem; \/* Spacing below headings *\/ line-height: 1.2; \/* Tighter line height for headings *\/ } \/* Paragraph spacing *\/ p { margin-bottom: 1rem; } \/* List styling for better readability and structure *\/ ul { list-style-type: disc; \/* Standard disc bullets for unordered lists *\/ margin-left: 1.5rem; \/* Indentation for list items *\/ margin-bottom: 1rem; } ol { list-style-type: decimal; \/* Decimal numbering for ordered lists *\/ margin-left: 1.5rem; \/* Indentation for list items *\/ margin-bottom: 1rem; } li { margin-bottom: 0.5rem; \/* Spacing between list items *\/ } \/* Styling for strong\/bold text to highlight key terms *\/ strong { font-weight: 600; \/* Slightly bolder than default bold *\/ color: #111827; \/* Very dark gray for emphasized text *\/ } \/* Specific styling for highlighted terms like 'societies', 'trusts', etc. *\/ .text-blue-700 { color: #1d4ed8; \/* A distinct blue for key legal terms *\/ } <\/style>\n<p><\/head><body>  <\/p>\n<div class=\"container mx-auto px-4 py-8 max-w-4xl bg-white shadow-lg rounded-lg my-8\">  <\/p>\n<h1 class=\"text-4xl font-extrabold text-center mb-8 md:text-5xl\">NGO Formation & Primary Regulatory Authorities in Bangladesh<\/h1>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Legal Bases for NGO Formation<\/h2>\n<p> <pee class=\"mb-4\">NGOs in Bangladesh can be formed under the following key statutes, each catering to different organizational structures and purposes:<\/pee>  <\/p>\n<div class=\"space-y-6\"> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Societies Registration Act, 1860<\/h3>\n<p> <pee>This is a widely utilized act for forming <strong class=\"text-blue-700\">societies<\/strong> focused on literary, scientific, or charitable objectives. It\u2019s suitable for various social, cultural, and educational initiatives. While a society isn\u2019t a true legal person (it sues or is sued in the name of its officers), most local NGOs historically opt for this due to its simpler formation requirements, typically needing 7 or more individuals.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Trust Act, 1882<\/h3>\n<p> <pee>This Act governs the creation of <strong class=\"text-blue-700\">trusts<\/strong>, which can be for any lawful purpose, public or private. Trusts are not legal persons, and the trustee holds legal ownership of the property, bearing personal liability for breach of trust. Some NGOs, like PRIP Trust, are formed this way. No government registration is strictly required for trust creation, although certain charitable trusts might seek specific approvals.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Companies Act, 1994<\/h3>\n<p> <pee>This Act allows for the incorporation of <strong class=\"text-blue-700\">non-profit companies<\/strong> (specifically under Sections 26 and 27) for promoting commerce, art, science, religion, charity, or any other useful object. This structure provides <strong class=\"text-blue-700\">full legal personality<\/strong> and <strong class=\"text-blue-700\">limited liability<\/strong>, making it increasingly popular for NGOs seeking a more formal and robust organizational framework. These entities typically require 7 or more persons (or 2 or more for a private company) and are overseen by the Registrar of Joint Stock Companies and Firms (RJSC).<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (SWO)<\/h3>\n<p> <pee>This Ordinance mandates registration for organizations providing specific welfare services, such as those for children, youth, women, persons with disabilities, and various social work initiatives. It\u2019s administered by the <strong class=\"text-blue-700\">Department of Social Services (DSS)<\/strong> under the Ministry of Social Welfare and Human Development, granting the DSS broad discretion and control over registered agencies, including the right to suspend or dissolve them. Most NGOs providing social welfare services are registered under this Ordinance.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Religious Endowments<\/h3>\n<p> <pee>Specific laws like the <strong class=\"text-blue-700\">Waqf Ordinance of 1962<\/strong>, <strong class=\"text-blue-700\">Hindu Religious Welfare Trust Ordinance of 1983<\/strong>, <strong class=\"text-blue-700\">Christian Religious Welfare Trust Ordinance of 1983<\/strong>, and <strong class=\"text-blue-700\">Buddhist Religious Welfare Trust Ordinance of 1983<\/strong> govern the establishment and management of religious trusts and endowments.<\/pee> <\/article>\n<p> <\/div>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Key Regulatory Bodies<\/h2>\n<p> <pee class=\"mb-4\">The regulatory oversight for NGOs in Bangladesh is distributed among several government agencies:<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">NGO Affairs Bureau (NGOAB):<\/strong> This is the <strong class=\"text-blue-700\">principal regulatory authority<\/strong> for all NGOs and International NGOs (INGOs) that receive <strong class=\"text-blue-700\">foreign funds<\/strong>. Operating under the Prime Minister\u2019s Office, NGOAB\u2019s mandate is primarily derived from the <strong class=\"text-blue-700\">Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA)<\/strong>. It serves as a <strong class=\"text-blue-700\">\u201cone-stop shop\u201d<\/strong> for the registration, project approval, and monitoring of foreign-funded voluntary activities.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Department of Social Services (DSS):<\/strong> As mentioned, the DSS registers and regulates NGOs involved in specific social welfare activities under the SWO, 1961.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Registrar of Joint Stock Companies and Firms (RJSC):<\/strong> This body, under the Ministry of Commerce, is responsible for the registration of NGOs opting to be incorporated as societies or non-profit companies.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Department of Women and Children Affairs (DWCA):<\/strong> This department specifically registers and oversees organizations dedicated to the welfare of women and children.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Government NGO Consultative Council (GNCC):<\/strong> Established to foster dialogue and cooperation between the government and NGOs, aiming to improve coordination and understanding.<\/li>\n<p> <\/ul>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">NGO Registration Process: A Step-by-Step Guide<\/h2>\n<p> <pee class=\"mb-4\">The <strong class=\"text-blue-700\">NGO registration process<\/strong> in Bangladesh varies based on the chosen legal structure and the primary regulatory authority. However, common steps for <strong class=\"text-blue-700\">legal compliance<\/strong> include:<\/pee> <\/p>\n<ol class=\"list-decimal pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Name Clearance:<\/strong> Obtain clearance for the proposed NGO name from the relevant authority (e.g., RJSC for societies\/companies, or NGOAB for foreign-funded NGOs).<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Application Submission:<\/strong> A formal application must be submitted with a comprehensive set of documents. This typically includes:\n<ul class=\"list-disc pl-5 mt-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Constitutive Documents:<\/strong> Memorandum and Articles of Association (for companies), Trust Deed (for trusts), or equivalent founding documents for societies.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Organizational Details:<\/strong> List of executive committee members\/trustees with their National ID copies, photographs, and detailed personal information.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Operational Plan:<\/strong> A clear outline of the NGO\u2019s intended activities, objectives, and operational strategies.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Financial Details:<\/strong> Information on the source of funding, proposed budget, and projected financial activities. For foreign-funded NGOs, a letter of intent from the donor and detailed information regarding the foreign donation are mandatory for submission to the NGOAB.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Registered Office Proof:<\/strong> Documentation confirming the registered office address.<\/li>\n<p> <\/ul>\n<p> <\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Payment of Fees:<\/strong> Prescribed government registration fees must be paid. For NGOAB registration, the fee is BDT 50,000 for local NGOs and USD 9,000 (or equivalent in BDT) for foreign NGOs.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Security Clearance:<\/strong> Law enforcement agencies, including the Special Branch of Police and the National Security Intelligence, conduct thorough security checks on the organization and its key members.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Review and Inspection:<\/strong> The relevant regulatory authority reviews the application. This may involve physical inspections of the proposed office premises and verification of submitted information.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Issuance of Certificate:<\/strong> If all requirements are met and clearances obtained, the registration certificate is issued. NGOAB registration certificates are initially valid for <strong class=\"text-blue-700\">10 years<\/strong> and are renewable, subject to satisfactory performance and compliance.<\/li>\n<p> <\/ol>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">NGO Governance, Compliance & Reporting<\/h2>\n<p> <pee class=\"mb-4\">Effective <strong class=\"text-blue-700\">NGO governance<\/strong> and adherence to <strong class=\"text-blue-700\">regulatory compliance<\/strong> are paramount for long-term sustainability and credibility in Bangladesh.<\/pee> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Ongoing Compliance Requirements<\/h3>\n<p> <pee class=\"mb-4\">Registered NGOs must adhere to continuous reporting and compliance obligations:<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Annual Reporting:<\/strong> NGOs are required to submit annual reports on their activities and financial statements to the respective regulatory authority. Foreign-funded NGOs must submit these reports to the NGOAB.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Financial Audits:<\/strong> Mandatory audited financial reports are required. The NGOAB specifically mandates audits by approved auditors for foreign-funded NGOs, ensuring financial transparency and accountability.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Project Approval:<\/strong> For foreign-funded NGOs operating under the FDRA, each project, including its budget and implementation plan, requires prior approval from the NGOAB. Funds can only be released upon securing this approval.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Fund Management:<\/strong> All foreign donations must be received and managed through a specifically designated \u201cmother account\u201d in a scheduled bank in Bangladesh.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Monitoring and Inspection:<\/strong> Regulatory bodies possess the authority to monitor and inspect NGO activities, projects, and financial records to ensure adherence to approved plans and legal provisions.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Restrictions:<\/strong> The FDRA imposes restrictions on fund usage, including a cap on administrative expenses (e.g., typically 20% of the approved project budget for foreign-funded initiatives). Certain entities and individuals, such as election candidates and political parties, are explicitly prohibited from receiving foreign donations.<\/li>\n<p> <\/ul>\n<p> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2 mt-6\">Internal Governance and External Accountability<\/h3>\n<p> <pee>While laws for establishment (like the Societies Act or Trust Act) might have rudimentary internal governance rules, NGOs registered with the <strong class=\"text-blue-700\">DSS or NGOAB face more stringent accountability standards<\/strong>. Non-profit companies under the Companies Act, 1994, have the most extensive requirements, mirroring those of commercial companies, including comprehensive bookkeeping, regular audits, and detailed report-filing obligations, along with explicit fiduciary responsibility rules for directors.<\/pee> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Role and Functions of the NGO Affairs Bureau (NGOAB)<\/h2>\n<p> <pee class=\"mb-4\">The NGOAB plays a central role in the <strong class=\"text-blue-700\">NGO regulatory framework<\/strong>, especially for those receiving foreign funds. Its core functions include:<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">NGO Registration and Renewal:<\/strong> Managing the initial registration and subsequent renewal process for both local and international NGOs receiving foreign donations.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Project and Fund Approval:<\/strong> Reviewing and approving project proposals, including budgets and detailed implementation plans, and authorizing the release of foreign funds.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Expatriate Personnel Approval:<\/strong> Granting permission for the appointment of foreign officials and consultants and determining their tenure.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Financial Oversight:<\/strong> Scrutinizing and evaluating financial statements and reports, ensuring adherence to financial regulations and proper utilization of funds.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Monitoring & Evaluation:<\/strong> Regularly monitoring and evaluating NGO projects and activities to assess their progress and impact.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Information Gathering:<\/strong> Collecting information on foreign travel by NGO personnel and other relevant activities.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Compliance Enforcement:<\/strong> Taking appropriate action, including imposing penalties, for non-compliance with the FDRA and other relevant regulations.<\/li>\n<p> <\/ul>\n<p> <pee class=\"mt-4\">To register with NGOAB, an NGO typically needs approval from the Home Ministry and at least one line ministry, along with a detailed five-year plan. Each foreign grant requires a project proposal and a letter of intent from the donor. Banks holding NGO accounts are mandated to report comprehensive financial details to the Bangladesh Bank, which in turn reports to the NGOAB, ensuring a robust financial monitoring system.<\/pee> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Penalties and Enforcement for NGOs<\/h2>\n<p> <pee class=\"mb-4\">Non-compliance with the legal and regulatory framework in Bangladesh can lead to significant penalties for NGOs, varying depending on the specific law violated:<\/pee> <\/p>\n<div class=\"space-y-6\"> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Societies Act, 1860<\/h3>\n<p> <pee>This Act does not explicitly provide for fines, penalties, or involuntary dissolution for non-compliance. Enforcement typically relies on civil remedies or actions under other applicable laws.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Non-Profit Companies (Companies Act, 1994)<\/h3>\n<p> <pee>Like other companies, non-profit companies can be wound up if they cannot meet their debts or fail to file required reports. The government can also revoke their privilege to omit \u201climited\u201d from their name after due notice.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Trusts Act, 1882<\/h3>\n<p> <pee>A beneficiary can petition a court to enforce a trustee\u2019s duty or seek their removal. Trusts may be dissolved if their purposes become unlawful or impossible, though the \u201ccy pres\u201d doctrine may apply to preserve charitable trusts by reforming their objectives as close as possible to the original intent.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Social Welfare Organizations (SWOs) (Ordinance, 1961)<\/h3>\n<p> <pee>The Director of Social Welfare (DSW) holds substantial power, including the ability to <strong class=\"text-blue-700\">suspend the governing body<\/strong> of an SWO for financial irregularities, maladministration, or non-compliance. The DSW can also recommend dissolution to the government for violations prejudicial to public interest. Penalties for individuals or officers include fines or imprisonment for up to six months for contravening the Ordinance or making false statements.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA)<\/h3>\n<p> <pee>The NGOAB has extensive powers under the FDRA. For \u201creason to be recorded in writing,\u201d NGOAB can <strong class=\"text-blue-700\">inspect or seize accounts and documents<\/strong>. After providing a reasonable opportunity to be heard, NGOAB can <strong class=\"text-blue-700\">cancel an NGO\u2019s registration<\/strong> or halt its activities for failing to submit required declarations, submitting false declarations, or any other contravention. Individuals or NGOs that receive or use foreign donations in contravention of the FDRA are liable for a fine of <strong class=\"text-blue-700\">double the donation amount or imprisonment for up to three years<\/strong>.<\/pee> <\/article>\n<p> <\/div>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Fiscal Framework for NGOs: Taxation & VAT<\/h2>\n<p> <pee class=\"mb-4\">Understanding the <strong class=\"text-blue-700\">fiscal framework<\/strong> is crucial for NGOs to ensure <strong class=\"text-blue-700\">tax compliance<\/strong> and maximize available exemptions.<\/pee> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Income Tax Exemption under the Income Tax Act, 2023<\/h3>\n<p> <pee class=\"mb-4\">The <strong class=\"text-blue-700\">Income Tax Act, 2023<\/strong> (which repealed the Income Tax Ordinance, 1984) is the primary legislation governing <strong class=\"text-blue-700\">NGO taxation<\/strong> in Bangladesh. While NGOs are generally considered taxable entities, significant exemptions apply, particularly for donations and income used for charitable purposes.<\/pee> <\/p>\n<h4 class=\"text-xl font-semibold mb-2\">Exemption on Donations and Grants:<\/h4>\n<p> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Clause 12 of Part 1 of the Sixth Schedule of the Income Tax Act, 2023<\/strong> explicitly states that any donation or grant received by a religious institution or an organization operating for charitable purposes, <strong class=\"text-blue-700\">approved by the Tax Commissioner<\/strong>, and spent for religious or charitable purposes, shall be <strong class=\"text-blue-700\">deducted from total income<\/strong>, effectively making it non-taxable.<\/li>\n<p> <\/p>\n<li>Similarly, voluntary contributions, grants, or donations received by any person <strong class=\"text-blue-700\">approved by the NGO Affairs Bureau (NGOAB)<\/strong> and utilized for their intended purpose are also <strong class=\"text-blue-700\">tax-exempt<\/strong>.<\/li>\n<p> <\/ul>\n<p> <pee class=\"italic mt-4 mb-2\">Important Note: Sub-sections (5) and (6) of Section 76 of the Income Tax Act, 2023, concerning undisclosed income, are always applicable, emphasizing the need for transparent financial records.<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Approval is Key:<\/strong> For income from donations and grants to be tax-exempt, the organization must be <strong class=\"text-blue-700\">approved by the Tax Commissioner or the NGO Affairs Bureau<\/strong>.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Utilization of Funds:<\/strong> The exemption is strictly contingent on the received donations and grants being spent <strong class=\"text-blue-700\">exclusively for religious or charitable purposes<\/strong>. Diversion of funds to other activities may result in the income becoming taxable.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">NGOs Defined as Companies:<\/strong> The National Board of Revenue (NBR) clarifies that NGOs are considered \u201ccompanies\u201d under the Income Tax Act, 2023. However, tax authorities acknowledge that NGOs may not necessarily face the same corporate tax rates as other companies, especially regarding income from micro-credit operations and donations for social welfare and development.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Income from Microcredit:<\/strong> Income derived from microcredit operations may be tax-exempt, provided it is maintained in a revolving fund and used solely for microcredit activities. Any diversion of these funds to other business ventures can render them taxable.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Tax on Other Income:<\/strong> It is critical to note that while donations and grants for charitable purposes may be exempt, <strong class=\"text-blue-700\">other income sources<\/strong> of an NGO, such as revenue from commercial activities, bank interest, or rent from facilities like conference halls, are generally <strong class=\"text-blue-700\">subject to taxation<\/strong>.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Reporting Requirements:<\/strong> NGOs registered with the NGOAB are required to file annual <strong class=\"text-blue-700\">income tax returns<\/strong>, ensuring ongoing financial transparency to the NBR.<\/li>\n<p> <\/ul>\n<p> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2 mt-6\">Deductibility of Donations for Donors<\/h3>\n<p> <pee class=\"mb-4\">Under specific conditions, donations made to charitable NGOs in Bangladesh can be <strong class=\"text-blue-700\">deductible for the donor<\/strong> from their taxable income, as per the Income Tax Act, 2023.<\/pee> <\/p>\n<h4 class=\"text-xl font-semibold mb-2\">For the Donor: Donations to the following types of institutions can be deductible:<\/h4>\n<p> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Charitable Hospitals:<\/strong> Hospitals established outside city corporation areas within one year prior to the donation and approved by the NBR.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Organizations for Persons with Disabilities:<\/strong> Entities established for the welfare of persons with disabilities, operational for at least one year prior to the donation, and approved by both the Department of Social Welfare and the NBR.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Zakat Fund\/Charitable Funds:<\/strong> Amounts paid as Zakat to the Zakat Fund or as donations to any charitable fund established under the Zakat Fund Management Act, 2023.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Public Welfare\/Educational Institutions:<\/strong> Grants to any public welfare or educational institution approved by the government.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Specific Approved Institutions:<\/strong> Certain historically approved institutions, such as the Liberation War Museum, Aga Khan Development Network, Ahsania Cancer Hospital, Asiatic Society, ICDDR\u2019B, and Centre for the Rehabilitation of the Paralysed (CRP), typically enjoy tax-exempt status for donations.<\/li>\n<p> <\/ul>\n<p> <\/p>\n<h4 class=\"text-xl font-semibold mb-2 mt-4\">Important Considerations for Deductibility:<\/h4>\n<p> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Approval is Crucial:<\/strong> The recipient NGO or institution must be approved by the relevant authority (Tax Commissioner, NBR, or DSS) for the donation to be deductible.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Documentation:<\/strong> Donors must maintain proper receipts and documentation to claim deductions.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Limits:<\/strong> There may be statutory limits on the amount that can be claimed as a deduction, often expressed as a percentage of the donor\u2019s taxable income.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Income Tax Act, 2023:<\/strong> The new Act reinforces the necessity of approval for the receiving organization for the donation to be deductible.<\/li>\n<p> <\/ul>\n<p> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2 mt-6\">VAT Exemption<\/h3>\n<p> <pee class=\"mb-4\">Bangladesh has a standard <strong class=\"text-blue-700\">Value Added Tax (VAT)<\/strong> rate of 15%. There isn\u2019t a blanket VAT exemption for all NGOs. However, certain goods and services are VAT-exempt as per the <strong class=\"text-blue-700\">First Schedule of the Value Added Tax and Supplementary Duty Act, 2012<\/strong>.<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Standard VAT Rate:<\/strong> The general VAT rate is 15% on most goods and services.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">VAT Exemptions:<\/strong> If an NGO\u2019s activities involve the supply or import of goods or services listed in the First Schedule of the VAT Act, 2012, those specific transactions would be VAT-exempt. Examples include certain agricultural products, healthcare services, and educational services. The exemption is typically based on the <strong class=\"text-blue-700\">nature of the good\/service<\/strong>, not the entity itself.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">VAT Deduction at Source (VDS):<\/strong> Notably, NGOs approved by the NGO Affairs Bureau or the Directorate General of Social Welfare are designated as <strong class=\"text-blue-700\">withholding entities<\/strong> responsible for VAT Deduction at Source (VDS). This means they are required to deduct VAT at source when making payments to vendors for taxable supplies and remit it to the government treasury. This is a collection mechanism, not an exemption for the NGO.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">No General Exemption Based on NGO Status:<\/strong> The VAT law does not provide a general exemption for all activities or purchases made by NGOs solely due to their non-profit status.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Project-Based Exemptions (Possible but not guaranteed):<\/strong> In specific cases, particularly for projects funded by international donors or focused on critical social welfare, <strong class=\"text-blue-700\">project-specific VAT exemptions<\/strong> might <strong class=\"text-blue-700\">be granted through Special Regulatory Orders (SROs) issued by the NBR<\/strong>. These are not automatic and require explicit approvals.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Import VAT:<\/strong> Unless a specific exemption is officially notified, the import of goods by NGOs is generally subject to 15% VAT, payable at the time of import.<\/li>\n<p> <\/ul>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Top Law Firms in Dhaka for NGO Legal & Regulatory Support<\/h2>\n<p> <pee class=\"mb-4\">Navigating the intricacies of <strong class=\"text-blue-700\">NGO law in Bangladesh<\/strong>, including <strong class=\"text-blue-700\">NGO registration<\/strong>, <strong class=\"text-blue-700\">governance<\/strong>, <strong class=\"text-blue-700\">tax matters<\/strong>, and <strong class=\"text-blue-700\">regulatory compliance<\/strong>, demands specialized legal expertise. Several law firms in Dhaka are highly regarded for their robust practice in this sector:<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">LegalSeba LLP:<\/strong> With a demonstrated focus on NGO registration, governance, and tax matters, Legal Seba LLP offers comprehensive legal services tailored to non-profit organizations. Their expertise extends to navigating the complexities of the Foreign Donations (Voluntary Activities) Regulation Act, 2016, and the Income Tax Act, 2023, providing crucial support for both local and international NGOs. Their website indicates strong experience in <strong class=\"text-blue-700\">NGO formation and legal advisory (LegalSeba)<\/strong>.<\/li>\n<p> <\/ul>\n<p> <pee class=\"mt-4\">When selecting a law firm, it\u2019s vital for NGOs to prioritize firms with proven experience in <strong class=\"text-blue-700\">NGO registration Bangladesh<\/strong>, deep understanding of the <strong class=\"text-blue-700\">FDRA 2016<\/strong>, expertise in <strong class=\"text-blue-700\">NGO tax exemptions<\/strong> under the Income Tax Act, 2023, and a strong track record in ensuring <strong class=\"text-blue-700\">regulatory compliance<\/strong> with the NGOAB and other authorities. This ensures comprehensive <strong class=\"text-blue-700\">legal protection<\/strong> and seamless operations for your organization.<\/pee> <\/section>\n<p> <\/div>\n<p><\/body><\/html>[\/et_pb_code][et_pb_code _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<!DOCTYPE html><html lang=\"en\"><head> <meta charset=\"UTF-8\"> <meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\"> <title>NGO Legal & Regulatory Framework in Bangladesh<\/title> <script src=\"https:\/\/cdn.tailwindcss.com\"><\/script> <link href=\"https:\/\/fonts.googleapis.com\/css2?family=Inter:wght@400;600;700&display=swap\" rel=\"stylesheet\"> <\/p>\n<style> body { font-family: 'Inter', sans-serif; background-color: #f0f4f8; \/* Light blue-gray background *\/ color: #333; } .container { max-width: 1200px; margin: 0 auto; padding: 1rem; } .card { background-color: #ffffff; border-radius: 12px; box-shadow: 0 4px 12px rgba(0, 0, 0, 0.08); padding: 1.5rem; margin-bottom: 1.5rem; transition: transform 0.2s ease-in-out; } .card:hover { transform: translateY(-5px); } .section-title { color: #1a73e8; \/* Google Blue *\/ font-weight: 700; margin-bottom: 1rem; text-align: center; } .sub-section-title { color: #3f51b5; \/* Indigo *\/ font-weight: 600; margin-top: 1rem; margin-bottom: 0.5rem; } .list-item { display: flex; align-items: flex-start; margin-bottom: 0.5rem; } .list-icon { color: #4caf50; \/* Green checkmark *\/ margin-right: 0.5rem; font-size: 1.2em; line-height: 1.5; \/* Align with text *\/ } .bullet-point { color: #1a73e8; \/* Blue bullet *\/ margin-right: 0.5rem; font-size: 1.2em; line-height: 1.5; } .text-small { font-size: 0.9em; color: #555; } .note { background-color: #fff3e0; \/* Light orange for notes *\/ border-left: 4px solid #ff9800; \/* Orange border *\/ padding: 0.75rem; border-radius: 4px; margin-top: 1rem; font-size: 0.9em; color: #664a00; } .footer-note { font-size: 0.85em; color: #666; text-align: center; margin-top: 2rem; padding-top: 1rem; border-top: 1px solid #e0e0e0; } \/* Responsive adjustments *\/ @media (min-width: 640px) { \/* Small screens and up *\/ .grid-cols-1-sm-2 { grid-template-columns: repeat(2, minmax(0, 1fr)); } } @media (min-width: 1024px) { \/* Large screens and up *\/ .grid-cols-1-lg-3 { grid-template-columns: repeat(3, minmax(0, 1fr)); } } <\/style>\n<p><\/head><body class=\"p-4\"> <\/p>\n<div class=\"container\"> <\/p>\n<h1 class=\"text-3xl md:text-4xl font-bold text-center text-gray-800 mb-6 section-title\"> Navigating NGO Law in Bangladesh: A Comprehensive Infographic <\/h1>\n<p> <pee class=\"text-center text-gray-600 mb-8 max-w-2xl mx-auto\"> Understanding the multifaceted legal and regulatory environment is crucial for Non-Governmental Organizations (NGOs) operating in Bangladesh. This infographic provides a detailed overview of the key aspects. <\/pee>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Primary Regulatory Authorities<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 lg:grid-cols-3 gap-6\"> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">NGO Affairs Bureau (NGOAB)<\/h3>\n<p> <pee class=\"text-sm\">Primary body under Prime Minister’s Office for NGOs receiving foreign funds. Governed by **Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA)**. Acts as a “one-stop shop”.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Dept. of Social Services (DSS)<\/h3>\n<p> <pee class=\"text-sm\">Under Ministry of Social Welfare. Registers NGOs providing welfare services (children, women, disabled). Governed by **Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (SWO)**.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">RJSC & Firms<\/h3>\n<p> <pee class=\"text-sm\">Registrar of Joint Stock Companies and Firms (Ministry of Commerce). Registers NGOs as societies (**Societies Registration Act, 1860**) or non-profit companies (**Companies Act, 1994**).<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">DWCA<\/h3>\n<p> <pee class=\"text-sm\">Department of Women and Children Affairs (Ministry of Women and Children Affairs). Registers organizations working for women and children’s welfare.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">GNCC<\/h3>\n<p> <pee class=\"text-sm\">Government NGO Consultative Council. Fosters dialogue and cooperation between government and NGOs.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Legal Foundations & Formation<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 lg:grid-cols-3 gap-6\"> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Societies Registration Act, 1860<\/h3>\n<p> <pee class=\"text-sm font-semibold\">Most Common NGO Formation<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>For literary, scientific, charitable purposes.<\/li>\n<p> <\/p>\n<li>Requires 7+ individuals\/legal persons.<\/li>\n<p> <\/p>\n<li>Not a true legal person (sues in officers’ names).<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Trust Act, 1882<\/h3>\n<p> <pee class=\"text-sm font-semibold\">For Charitable Trusts<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>For any lawful purpose (private\/public).<\/li>\n<p> <\/p>\n<li>No government registration required.<\/li>\n<p> <\/p>\n<li>Trustee is legal owner, personally liable for breach.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Companies Act, 1994 (Sec. 26 & 27)<\/h3>\n<p> <pee class=\"text-sm font-semibold\">Non-Profit Companies<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>For promoting commerce, art, science, religion, charity, etc.<\/li>\n<p> <\/p>\n<li>7+ persons (2+ for private company).<\/li>\n<p> <\/p>\n<li>**Full legal personality & limited liability** (increasingly popular).<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">FDRA, 2016<\/h3>\n<p> <pee class=\"text-sm font-semibold\">Main Law for Foreign Funds<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Mandates registration with NGOAB.<\/li>\n<p> <\/p>\n<li>Requires project approval & fund management rules.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">SWO, 1961<\/h3>\n<p> <pee class=\"text-sm font-semibold\">For Welfare Services<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Mandatory registration with DSS for specific welfare activities.<\/li>\n<p> <\/p>\n<li>DSS has broad discretion and control.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Other Religious Ordinances<\/h3>\n<p> <pee class=\"text-sm\">Waqf Ordinance 1962, Hindu\/Christian\/Buddhist Religious Welfare Trust Ordinances 1983.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">NGO Registration Process Highlights<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 lg:grid-cols-3 gap-6\"> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">1. Name Clearance<\/h3>\n<p> <pee class=\"text-sm\">Obtain approval for the proposed name from the relevant authority (e.g., RJSC, NGOAB).<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">2. Application Submission<\/h3>\n<p> <pee class=\"text-sm\">Submit formal application with required documents:<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Constitutive documents (MoA, Trust Deed, etc.)<\/li>\n<p> <\/p>\n<li>Executive committee\/trustee details (NID, photos)<\/li>\n<p> <\/p>\n<li>Operational plan & activities report<\/li>\n<p> <\/p>\n<li>Source of funding & budget<\/li>\n<p> <\/p>\n<li>Proof of registered office address<\/li>\n<p> <\/p>\n<li>For foreign-funded: Donor letter of intent & foreign donation details (for NGOAB).<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">3. Payment of Fees<\/h3>\n<p> <pee class=\"text-sm\">Pay prescribed government registration fees:<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Local NGO (NGOAB): **BDT 50,000**<\/li>\n<p> <\/p>\n<li>Foreign NGO (NGOAB): **USD 9,000** (or BDT equivalent)<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">4. Security Clearance<\/h3>\n<p> <pee class=\"text-sm\">Law enforcement agencies (Special Branch, NSI) conduct checks on the organization and key members.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">5. Review & Inspection<\/h3>\n<p> <pee class=\"text-sm\">Relevant authority reviews application and may conduct physical inspections.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">6. Certificate Issuance<\/h3>\n<p> <pee class=\"text-sm\">Upon meeting requirements, registration certificate is issued. NGOAB certificate valid for **10 years**, renewable.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Compliance & Reporting<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 lg:grid-cols-3 gap-6\"> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Annual Reporting<\/h3>\n<p> <pee class=\"text-sm\">Submit annual reports on activities & financial statements to relevant authority (NGOAB for foreign-funded).<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Financial Audits<\/h3>\n<p> <pee class=\"text-sm\">Provide audited financial reports. NGOAB requires audits by approved auditors for foreign-funded NGOs.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Project Approval<\/h3>\n<p> <pee class=\"text-sm\">Each foreign-funded project requires approval from NGOAB (including budget and implementation plans).<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Fund Management<\/h3>\n<p> <pee class=\"text-sm\">Foreign donations must be received and managed through a designated “mother account” in a scheduled bank.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Monitoring & Inspection<\/h3>\n<p> <pee class=\"text-sm\">Regulatory authorities can monitor and inspect NGO activities and financial records.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Restrictions<\/h3>\n<p> <pee class=\"text-sm\">Cap on administrative expenses (e.g., **20% for foreign-funded projects**). Prohibited from receiving foreign donations: election candidates, political parties, etc.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Penalties for Non-Compliance<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 gap-6\"> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Societies Act, 1860<\/h3>\n<p> <pee class=\"text-sm\">No explicit provisions for fines, penalties, or involuntary dissolution within the Act itself.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Non-Profit Companies (Companies Act, 1994)<\/h3>\n<p> <pee class=\"text-sm\">May be wound up for inability to pay debts or default on filing required reports.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Trusts Act, 1882<\/h3>\n<p> <pee class=\"text-sm\">Beneficiary can seek court order to fulfill duty or remove trustee. Trusts may be wound up if purposes become unlawful\/impossible.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Voluntary Social Welfare Agencies Ordinance, 1961 (SWO)<\/h3>\n<p> <pee class=\"text-sm\">DSS can **suspend governing body** or recommend **dissolution**. Fines or **imprisonment up to 6 months** for contravention or false statements.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Foreign Donations Act, 2016 (FDRA)<\/h3>\n<p> <pee class=\"text-sm\">NGOAB can **inspect\/seize documents**, **cancel registration**, or stop activities. Fine of **double the donation amount** or **imprisonment up to 3 years** for contravention.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Fiscal Framework for NGOs<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 lg:grid-cols-2 gap-6\"> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Income Tax (Income Tax Act, 2023)<\/h3>\n<p> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>**Exemption on Donations\/Grants**: Tax-exempt if received by approved religious\/charitable institutions (approved by Tax Commissioner\/NGOAB) and spent for stated purposes (**Clause 12, Part 1, Sixth Schedule**).<\/li>\n<p> <\/p>\n<li>**Other Income**: Income from commercial activities, bank interest, rent, etc., is generally **taxable**.<\/li>\n<p> <\/p>\n<li>**Microcredit Income**: May be tax-exempt if kept in a revolving fund for microcredit activities.<\/li>\n<p> <\/p>\n<li>**Reporting**: Annual income tax returns must be filed with NBR.<\/li>\n<p> <\/p>\n<li>**NGOs as Companies**: NBR defines NGOs as companies, but tax rates may differ for certain income.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Deductibility of Donations (Income Tax Act, 2023)<\/h3>\n<p> <pee class=\"text-sm font-semibold\">For Donors:<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Deductible for donations to approved charitable hospitals, disability organizations, Zakat Fund, public welfare\/educational institutions.<\/li>\n<p> <\/p>\n<li>**Crucial**: Recipient NGO must be approved by relevant authority (Tax Commissioner, NBR, DSS).<\/li>\n<p> <\/p>\n<li>Proper receipts and documentation required.<\/li>\n<p> <\/p>\n<li>Subject to certain limits (e.g., percentage of donor’s taxable income).<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg col-span-1 lg:col-span-2\"> <\/p>\n<h3 class=\"sub-section-title\">VAT Exemption (VAT & Supplementary Duty Act, 2012)<\/h3>\n<p> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>**Standard VAT Rate**: 15% on most goods and services.<\/li>\n<p> <\/p>\n<li>**No Blanket Exemption**: NGOs are not automatically VAT-exempt.<\/li>\n<p> <\/p>\n<li>**Specific Exemptions**: Certain goods\/services listed in the **First Schedule** are VAT-exempt (e.g., agricultural products, healthcare, education).<\/li>\n<p> <\/p>\n<li>**VAT Deduction at Source (VDS)**: NGOs approved by NGOAB\/DSS are designated as **withholding entities** responsible for deducting VAT from vendor payments.<\/li>\n<p> <\/p>\n<li>**Project-Based Exemptions**: Possible through specific **Special Regulatory Orders (SROs)** from NBR for certain projects.<\/li>\n<p> <\/p>\n<li>**Import VAT**: Generally 15% on imported goods, unless specifically exempted.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p> <\/p>\n<div class=\"note\"> <pee class=\"font-semibold\">Disclaimer:<\/pee> <pee class=\"text-sm\">This infographic provides a general overview and is not legal advice. The legal and regulatory landscape can change, and specific situations may require tailored guidance. It is highly advisable for NGOs to consult with qualified legal and tax professionals in Bangladesh to ensure full compliance with all applicable laws and regulations.<\/pee> <\/div>\n<p> <pee class=\"footer-note\"> Infographic created based on the Legal & Regulatory Framework for NGOs in Bangladesh. <\/pee> <\/div>\n<p><\/body><\/html>[\/et_pb_code][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n<h3>\u00a0<\/h3>\n<h3><span style=\"color: #000000;\"><strong>Different Types of Non-profit Organizations in Bangladesh<\/strong><\/span><\/h3>\n<p><span style=\"color: #000000;\">Any group of individuals intending to establish a charitable organization in Bangladesh for social welfare may opt for one of the following legal entities, based on their specific objectives, long-term goals, and operational capacities, as stipulated under the relevant laws:<\/span><\/p>\n<ol>\n<li><span style=\"color: #000000;\"><strong>As a Society or Foundation<\/strong>: Register under the Societies Registration Act, of 1860, suitable for organizations focused on social, cultural, and educational activities.\u00a0<a style=\"color: #000000;\" href=\"https:\/\/legalseba.com\/bd-services\/foundation-registration-process-in-bangladesh-with-rjsc\/\">See detail guide><\/a><\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>A Charitable Trust<\/strong>:\u00a0Established under the Trust Act, of 1882, appropriate for entities aiming to provide financial assistance, healthcare, and educational support.\u00a0<a style=\"color: #000000;\" href=\"https:\/\/legalseba.com\/bd-services\/trust-registration-in-bangladesh-a-comprehensive-guideline\/\">See detail guide><\/a><\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>As a Social Welfare Organization<\/strong>: Register under Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (Ord. No. XLVI of 1961).\u00a0<a style=\"color: #000000;\" href=\"https:\/\/legalseba.com\/bd-services\/registering-social-welfare-organization-in-bangladesh\/\">See detail guide><\/a><\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>A Non-profit Trade Association<\/strong>:: Incorporated under the Companies Act, 1994, suitable for non-profit organizations intending to operate on a larger scale without issuing shares.\u00a0<a style=\"color: #000000;\" href=\"https:\/\/legalseba.com\/bd-services\/how-to-establish-a-trade-association-in-bangladesh\/\">See detail guide><\/a><\/span><\/li>\n<\/ol>\n<h3>\u00a0<\/h3>\n<h3><span style=\"color: #000000;\">Contact Us<\/span><\/h3>\n<p><span style=\"color: #000000;\">For more information or to begin the process of setting up a non-profit organization in Bangladesh, contact LegalSeba LLP today. Our team is ready to provide you with tailored assistance to ensure a seamless setup.<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">\ud83d\udcde\u00a0<strong>Phone\/WhatsApp:<\/strong>\u00a0+8801753718223<\/span><br \/><span style=\"color: #000000;\">\ud83d\udce7\u00a0<strong>Email:<\/strong>\u00a0support@legalseba.com<\/span><br \/><span style=\"color: #000000;\">\ud83c\udf10 <strong>Book A Meeting:<\/strong>\u00a0<a style=\"color: #000000;\" href=\"https:\/\/www.legalseba.com\/book-now\">LegalSeba.com\/book-now<\/a><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">Choose LegalSeba LLP for expert guidance and support in establishing your charitable organization in Bangladesh. Our comprehensive services will ensure that you meet all legal requirements efficiently and effectively. Contact us today to get started on your journey to establishing a successful presence in Bangladesh.<\/span><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Different Types of Non-profit Organizations in Bangladesh Any group of individuals intending to establish a charitable organization in Bangladesh for social welfare may opt for one of the following legal entities, based on their specific objectives, long-term goals, and operational capacities, as stipulated under the relevant laws: As a Society or Foundation: Register under […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[157],"tags":[],"class_list":["post-982","post","type-post","status-publish","format-standard","hentry","category-non-profit-organization","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"yoast_head":"\n<title>NGO Formation & Primary Regulatory Authorities in Bangladesh - 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{"id":982,"date":"2025-07-09T18:29:20","date_gmt":"2025-07-09T18:29:20","guid":{"rendered":"https:\/\/legalseba.com\/bd-articles\/?p=982"},"modified":"2025-07-29T21:09:01","modified_gmt":"2025-07-29T21:09:01","slug":"ngo-formation-primary-regulatory-authorities-in-bangladesh","status":"publish","type":"post","link":"https:\/\/legalseba.com\/bd-articles\/ngo-formation-primary-regulatory-authorities-in-bangladesh\/","title":{"rendered":"NGO Formation & Primary Regulatory Authorities in Bangladesh"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_code _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″] NGO Formation & Regulatory Authorities in Bangladesh<\/title> <script src=\"https:\/\/cdn.tailwindcss.com\"><\/script> <\/p>\n<style> \/* Custom styles for the Inter font and overall page aesthetics *\/ body { font-family: 'Inter', sans-serif; background-color: #f3f4f6; \/* Light gray background for a clean look *\/ color: #374151; \/* Darker gray text for readability *\/ line-height: 1.6; \/* Improved line spacing *\/ } \/* Styling for headings to ensure visual hierarchy and prominence *\/ h1, h2, h3, h4 { color: #1f2937; \/* Even darker gray for headings for strong contrast *\/ margin-bottom: 1rem; \/* Spacing below headings *\/ line-height: 1.2; \/* Tighter line height for headings *\/ } \/* Paragraph spacing *\/ p { margin-bottom: 1rem; } \/* List styling for better readability and structure *\/ ul { list-style-type: disc; \/* Standard disc bullets for unordered lists *\/ margin-left: 1.5rem; \/* Indentation for list items *\/ margin-bottom: 1rem; } ol { list-style-type: decimal; \/* Decimal numbering for ordered lists *\/ margin-left: 1.5rem; \/* Indentation for list items *\/ margin-bottom: 1rem; } li { margin-bottom: 0.5rem; \/* Spacing between list items *\/ } \/* Styling for strong\/bold text to highlight key terms *\/ strong { font-weight: 600; \/* Slightly bolder than default bold *\/ color: #111827; \/* Very dark gray for emphasized text *\/ } \/* Specific styling for highlighted terms like 'societies', 'trusts', etc. *\/ .text-blue-700 { color: #1d4ed8; \/* A distinct blue for key legal terms *\/ } <\/style>\n<p><\/head><body>  <\/p>\n<div class=\"container mx-auto px-4 py-8 max-w-4xl bg-white shadow-lg rounded-lg my-8\">  <\/p>\n<h1 class=\"text-4xl font-extrabold text-center mb-8 md:text-5xl\">NGO Formation & Primary Regulatory Authorities in Bangladesh<\/h1>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Legal Bases for NGO Formation<\/h2>\n<p> <pee class=\"mb-4\">NGOs in Bangladesh can be formed under the following key statutes, each catering to different organizational structures and purposes:<\/pee>  <\/p>\n<div class=\"space-y-6\"> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Societies Registration Act, 1860<\/h3>\n<p> <pee>This is a widely utilized act for forming <strong class=\"text-blue-700\">societies<\/strong> focused on literary, scientific, or charitable objectives. It\u2019s suitable for various social, cultural, and educational initiatives. While a society isn\u2019t a true legal person (it sues or is sued in the name of its officers), most local NGOs historically opt for this due to its simpler formation requirements, typically needing 7 or more individuals.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Trust Act, 1882<\/h3>\n<p> <pee>This Act governs the creation of <strong class=\"text-blue-700\">trusts<\/strong>, which can be for any lawful purpose, public or private. Trusts are not legal persons, and the trustee holds legal ownership of the property, bearing personal liability for breach of trust. Some NGOs, like PRIP Trust, are formed this way. No government registration is strictly required for trust creation, although certain charitable trusts might seek specific approvals.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Companies Act, 1994<\/h3>\n<p> <pee>This Act allows for the incorporation of <strong class=\"text-blue-700\">non-profit companies<\/strong> (specifically under Sections 26 and 27) for promoting commerce, art, science, religion, charity, or any other useful object. This structure provides <strong class=\"text-blue-700\">full legal personality<\/strong> and <strong class=\"text-blue-700\">limited liability<\/strong>, making it increasingly popular for NGOs seeking a more formal and robust organizational framework. These entities typically require 7 or more persons (or 2 or more for a private company) and are overseen by the Registrar of Joint Stock Companies and Firms (RJSC).<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (SWO)<\/h3>\n<p> <pee>This Ordinance mandates registration for organizations providing specific welfare services, such as those for children, youth, women, persons with disabilities, and various social work initiatives. It\u2019s administered by the <strong class=\"text-blue-700\">Department of Social Services (DSS)<\/strong> under the Ministry of Social Welfare and Human Development, granting the DSS broad discretion and control over registered agencies, including the right to suspend or dissolve them. Most NGOs providing social welfare services are registered under this Ordinance.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Religious Endowments<\/h3>\n<p> <pee>Specific laws like the <strong class=\"text-blue-700\">Waqf Ordinance of 1962<\/strong>, <strong class=\"text-blue-700\">Hindu Religious Welfare Trust Ordinance of 1983<\/strong>, <strong class=\"text-blue-700\">Christian Religious Welfare Trust Ordinance of 1983<\/strong>, and <strong class=\"text-blue-700\">Buddhist Religious Welfare Trust Ordinance of 1983<\/strong> govern the establishment and management of religious trusts and endowments.<\/pee> <\/article>\n<p> <\/div>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Key Regulatory Bodies<\/h2>\n<p> <pee class=\"mb-4\">The regulatory oversight for NGOs in Bangladesh is distributed among several government agencies:<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">NGO Affairs Bureau (NGOAB):<\/strong> This is the <strong class=\"text-blue-700\">principal regulatory authority<\/strong> for all NGOs and International NGOs (INGOs) that receive <strong class=\"text-blue-700\">foreign funds<\/strong>. Operating under the Prime Minister\u2019s Office, NGOAB\u2019s mandate is primarily derived from the <strong class=\"text-blue-700\">Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA)<\/strong>. It serves as a <strong class=\"text-blue-700\">\u201cone-stop shop\u201d<\/strong> for the registration, project approval, and monitoring of foreign-funded voluntary activities.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Department of Social Services (DSS):<\/strong> As mentioned, the DSS registers and regulates NGOs involved in specific social welfare activities under the SWO, 1961.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Registrar of Joint Stock Companies and Firms (RJSC):<\/strong> This body, under the Ministry of Commerce, is responsible for the registration of NGOs opting to be incorporated as societies or non-profit companies.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Department of Women and Children Affairs (DWCA):<\/strong> This department specifically registers and oversees organizations dedicated to the welfare of women and children.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Government NGO Consultative Council (GNCC):<\/strong> Established to foster dialogue and cooperation between the government and NGOs, aiming to improve coordination and understanding.<\/li>\n<p> <\/ul>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">NGO Registration Process: A Step-by-Step Guide<\/h2>\n<p> <pee class=\"mb-4\">The <strong class=\"text-blue-700\">NGO registration process<\/strong> in Bangladesh varies based on the chosen legal structure and the primary regulatory authority. However, common steps for <strong class=\"text-blue-700\">legal compliance<\/strong> include:<\/pee> <\/p>\n<ol class=\"list-decimal pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Name Clearance:<\/strong> Obtain clearance for the proposed NGO name from the relevant authority (e.g., RJSC for societies\/companies, or NGOAB for foreign-funded NGOs).<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Application Submission:<\/strong> A formal application must be submitted with a comprehensive set of documents. This typically includes:\n<ul class=\"list-disc pl-5 mt-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Constitutive Documents:<\/strong> Memorandum and Articles of Association (for companies), Trust Deed (for trusts), or equivalent founding documents for societies.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Organizational Details:<\/strong> List of executive committee members\/trustees with their National ID copies, photographs, and detailed personal information.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Operational Plan:<\/strong> A clear outline of the NGO\u2019s intended activities, objectives, and operational strategies.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Financial Details:<\/strong> Information on the source of funding, proposed budget, and projected financial activities. For foreign-funded NGOs, a letter of intent from the donor and detailed information regarding the foreign donation are mandatory for submission to the NGOAB.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Registered Office Proof:<\/strong> Documentation confirming the registered office address.<\/li>\n<p> <\/ul>\n<p> <\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Payment of Fees:<\/strong> Prescribed government registration fees must be paid. For NGOAB registration, the fee is BDT 50,000 for local NGOs and USD 9,000 (or equivalent in BDT) for foreign NGOs.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Security Clearance:<\/strong> Law enforcement agencies, including the Special Branch of Police and the National Security Intelligence, conduct thorough security checks on the organization and its key members.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Review and Inspection:<\/strong> The relevant regulatory authority reviews the application. This may involve physical inspections of the proposed office premises and verification of submitted information.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Issuance of Certificate:<\/strong> If all requirements are met and clearances obtained, the registration certificate is issued. NGOAB registration certificates are initially valid for <strong class=\"text-blue-700\">10 years<\/strong> and are renewable, subject to satisfactory performance and compliance.<\/li>\n<p> <\/ol>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">NGO Governance, Compliance & Reporting<\/h2>\n<p> <pee class=\"mb-4\">Effective <strong class=\"text-blue-700\">NGO governance<\/strong> and adherence to <strong class=\"text-blue-700\">regulatory compliance<\/strong> are paramount for long-term sustainability and credibility in Bangladesh.<\/pee> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Ongoing Compliance Requirements<\/h3>\n<p> <pee class=\"mb-4\">Registered NGOs must adhere to continuous reporting and compliance obligations:<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Annual Reporting:<\/strong> NGOs are required to submit annual reports on their activities and financial statements to the respective regulatory authority. Foreign-funded NGOs must submit these reports to the NGOAB.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Financial Audits:<\/strong> Mandatory audited financial reports are required. The NGOAB specifically mandates audits by approved auditors for foreign-funded NGOs, ensuring financial transparency and accountability.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Project Approval:<\/strong> For foreign-funded NGOs operating under the FDRA, each project, including its budget and implementation plan, requires prior approval from the NGOAB. Funds can only be released upon securing this approval.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Fund Management:<\/strong> All foreign donations must be received and managed through a specifically designated \u201cmother account\u201d in a scheduled bank in Bangladesh.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Monitoring and Inspection:<\/strong> Regulatory bodies possess the authority to monitor and inspect NGO activities, projects, and financial records to ensure adherence to approved plans and legal provisions.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Restrictions:<\/strong> The FDRA imposes restrictions on fund usage, including a cap on administrative expenses (e.g., typically 20% of the approved project budget for foreign-funded initiatives). Certain entities and individuals, such as election candidates and political parties, are explicitly prohibited from receiving foreign donations.<\/li>\n<p> <\/ul>\n<p> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2 mt-6\">Internal Governance and External Accountability<\/h3>\n<p> <pee>While laws for establishment (like the Societies Act or Trust Act) might have rudimentary internal governance rules, NGOs registered with the <strong class=\"text-blue-700\">DSS or NGOAB face more stringent accountability standards<\/strong>. Non-profit companies under the Companies Act, 1994, have the most extensive requirements, mirroring those of commercial companies, including comprehensive bookkeeping, regular audits, and detailed report-filing obligations, along with explicit fiduciary responsibility rules for directors.<\/pee> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Role and Functions of the NGO Affairs Bureau (NGOAB)<\/h2>\n<p> <pee class=\"mb-4\">The NGOAB plays a central role in the <strong class=\"text-blue-700\">NGO regulatory framework<\/strong>, especially for those receiving foreign funds. Its core functions include:<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">NGO Registration and Renewal:<\/strong> Managing the initial registration and subsequent renewal process for both local and international NGOs receiving foreign donations.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Project and Fund Approval:<\/strong> Reviewing and approving project proposals, including budgets and detailed implementation plans, and authorizing the release of foreign funds.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Expatriate Personnel Approval:<\/strong> Granting permission for the appointment of foreign officials and consultants and determining their tenure.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Financial Oversight:<\/strong> Scrutinizing and evaluating financial statements and reports, ensuring adherence to financial regulations and proper utilization of funds.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Monitoring & Evaluation:<\/strong> Regularly monitoring and evaluating NGO projects and activities to assess their progress and impact.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Information Gathering:<\/strong> Collecting information on foreign travel by NGO personnel and other relevant activities.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Compliance Enforcement:<\/strong> Taking appropriate action, including imposing penalties, for non-compliance with the FDRA and other relevant regulations.<\/li>\n<p> <\/ul>\n<p> <pee class=\"mt-4\">To register with NGOAB, an NGO typically needs approval from the Home Ministry and at least one line ministry, along with a detailed five-year plan. Each foreign grant requires a project proposal and a letter of intent from the donor. Banks holding NGO accounts are mandated to report comprehensive financial details to the Bangladesh Bank, which in turn reports to the NGOAB, ensuring a robust financial monitoring system.<\/pee> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Penalties and Enforcement for NGOs<\/h2>\n<p> <pee class=\"mb-4\">Non-compliance with the legal and regulatory framework in Bangladesh can lead to significant penalties for NGOs, varying depending on the specific law violated:<\/pee> <\/p>\n<div class=\"space-y-6\"> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Societies Act, 1860<\/h3>\n<p> <pee>This Act does not explicitly provide for fines, penalties, or involuntary dissolution for non-compliance. Enforcement typically relies on civil remedies or actions under other applicable laws.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Non-Profit Companies (Companies Act, 1994)<\/h3>\n<p> <pee>Like other companies, non-profit companies can be wound up if they cannot meet their debts or fail to file required reports. The government can also revoke their privilege to omit \u201climited\u201d from their name after due notice.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Trusts Act, 1882<\/h3>\n<p> <pee>A beneficiary can petition a court to enforce a trustee\u2019s duty or seek their removal. Trusts may be dissolved if their purposes become unlawful or impossible, though the \u201ccy pres\u201d doctrine may apply to preserve charitable trusts by reforming their objectives as close as possible to the original intent.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Social Welfare Organizations (SWOs) (Ordinance, 1961)<\/h3>\n<p> <pee>The Director of Social Welfare (DSW) holds substantial power, including the ability to <strong class=\"text-blue-700\">suspend the governing body<\/strong> of an SWO for financial irregularities, maladministration, or non-compliance. The DSW can also recommend dissolution to the government for violations prejudicial to public interest. Penalties for individuals or officers include fines or imprisonment for up to six months for contravening the Ordinance or making false statements.<\/pee> <\/article>\n<p> <\/p>\n<article> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA)<\/h3>\n<p> <pee>The NGOAB has extensive powers under the FDRA. For \u201creason to be recorded in writing,\u201d NGOAB can <strong class=\"text-blue-700\">inspect or seize accounts and documents<\/strong>. After providing a reasonable opportunity to be heard, NGOAB can <strong class=\"text-blue-700\">cancel an NGO\u2019s registration<\/strong> or halt its activities for failing to submit required declarations, submitting false declarations, or any other contravention. Individuals or NGOs that receive or use foreign donations in contravention of the FDRA are liable for a fine of <strong class=\"text-blue-700\">double the donation amount or imprisonment for up to three years<\/strong>.<\/pee> <\/article>\n<p> <\/div>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Fiscal Framework for NGOs: Taxation & VAT<\/h2>\n<p> <pee class=\"mb-4\">Understanding the <strong class=\"text-blue-700\">fiscal framework<\/strong> is crucial for NGOs to ensure <strong class=\"text-blue-700\">tax compliance<\/strong> and maximize available exemptions.<\/pee> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2\">Income Tax Exemption under the Income Tax Act, 2023<\/h3>\n<p> <pee class=\"mb-4\">The <strong class=\"text-blue-700\">Income Tax Act, 2023<\/strong> (which repealed the Income Tax Ordinance, 1984) is the primary legislation governing <strong class=\"text-blue-700\">NGO taxation<\/strong> in Bangladesh. While NGOs are generally considered taxable entities, significant exemptions apply, particularly for donations and income used for charitable purposes.<\/pee> <\/p>\n<h4 class=\"text-xl font-semibold mb-2\">Exemption on Donations and Grants:<\/h4>\n<p> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Clause 12 of Part 1 of the Sixth Schedule of the Income Tax Act, 2023<\/strong> explicitly states that any donation or grant received by a religious institution or an organization operating for charitable purposes, <strong class=\"text-blue-700\">approved by the Tax Commissioner<\/strong>, and spent for religious or charitable purposes, shall be <strong class=\"text-blue-700\">deducted from total income<\/strong>, effectively making it non-taxable.<\/li>\n<p> <\/p>\n<li>Similarly, voluntary contributions, grants, or donations received by any person <strong class=\"text-blue-700\">approved by the NGO Affairs Bureau (NGOAB)<\/strong> and utilized for their intended purpose are also <strong class=\"text-blue-700\">tax-exempt<\/strong>.<\/li>\n<p> <\/ul>\n<p> <pee class=\"italic mt-4 mb-2\">Important Note: Sub-sections (5) and (6) of Section 76 of the Income Tax Act, 2023, concerning undisclosed income, are always applicable, emphasizing the need for transparent financial records.<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Approval is Key:<\/strong> For income from donations and grants to be tax-exempt, the organization must be <strong class=\"text-blue-700\">approved by the Tax Commissioner or the NGO Affairs Bureau<\/strong>.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Utilization of Funds:<\/strong> The exemption is strictly contingent on the received donations and grants being spent <strong class=\"text-blue-700\">exclusively for religious or charitable purposes<\/strong>. Diversion of funds to other activities may result in the income becoming taxable.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">NGOs Defined as Companies:<\/strong> The National Board of Revenue (NBR) clarifies that NGOs are considered \u201ccompanies\u201d under the Income Tax Act, 2023. However, tax authorities acknowledge that NGOs may not necessarily face the same corporate tax rates as other companies, especially regarding income from micro-credit operations and donations for social welfare and development.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Income from Microcredit:<\/strong> Income derived from microcredit operations may be tax-exempt, provided it is maintained in a revolving fund and used solely for microcredit activities. Any diversion of these funds to other business ventures can render them taxable.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Tax on Other Income:<\/strong> It is critical to note that while donations and grants for charitable purposes may be exempt, <strong class=\"text-blue-700\">other income sources<\/strong> of an NGO, such as revenue from commercial activities, bank interest, or rent from facilities like conference halls, are generally <strong class=\"text-blue-700\">subject to taxation<\/strong>.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Reporting Requirements:<\/strong> NGOs registered with the NGOAB are required to file annual <strong class=\"text-blue-700\">income tax returns<\/strong>, ensuring ongoing financial transparency to the NBR.<\/li>\n<p> <\/ul>\n<p> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2 mt-6\">Deductibility of Donations for Donors<\/h3>\n<p> <pee class=\"mb-4\">Under specific conditions, donations made to charitable NGOs in Bangladesh can be <strong class=\"text-blue-700\">deductible for the donor<\/strong> from their taxable income, as per the Income Tax Act, 2023.<\/pee> <\/p>\n<h4 class=\"text-xl font-semibold mb-2\">For the Donor: Donations to the following types of institutions can be deductible:<\/h4>\n<p> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Charitable Hospitals:<\/strong> Hospitals established outside city corporation areas within one year prior to the donation and approved by the NBR.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Organizations for Persons with Disabilities:<\/strong> Entities established for the welfare of persons with disabilities, operational for at least one year prior to the donation, and approved by both the Department of Social Welfare and the NBR.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Zakat Fund\/Charitable Funds:<\/strong> Amounts paid as Zakat to the Zakat Fund or as donations to any charitable fund established under the Zakat Fund Management Act, 2023.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Public Welfare\/Educational Institutions:<\/strong> Grants to any public welfare or educational institution approved by the government.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Specific Approved Institutions:<\/strong> Certain historically approved institutions, such as the Liberation War Museum, Aga Khan Development Network, Ahsania Cancer Hospital, Asiatic Society, ICDDR\u2019B, and Centre for the Rehabilitation of the Paralysed (CRP), typically enjoy tax-exempt status for donations.<\/li>\n<p> <\/ul>\n<p> <\/p>\n<h4 class=\"text-xl font-semibold mb-2 mt-4\">Important Considerations for Deductibility:<\/h4>\n<p> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Approval is Crucial:<\/strong> The recipient NGO or institution must be approved by the relevant authority (Tax Commissioner, NBR, or DSS) for the donation to be deductible.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Documentation:<\/strong> Donors must maintain proper receipts and documentation to claim deductions.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Limits:<\/strong> There may be statutory limits on the amount that can be claimed as a deduction, often expressed as a percentage of the donor\u2019s taxable income.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Income Tax Act, 2023:<\/strong> The new Act reinforces the necessity of approval for the receiving organization for the donation to be deductible.<\/li>\n<p> <\/ul>\n<p> <\/p>\n<h3 class=\"text-2xl font-semibold mb-2 mt-6\">VAT Exemption<\/h3>\n<p> <pee class=\"mb-4\">Bangladesh has a standard <strong class=\"text-blue-700\">Value Added Tax (VAT)<\/strong> rate of 15%. There isn\u2019t a blanket VAT exemption for all NGOs. However, certain goods and services are VAT-exempt as per the <strong class=\"text-blue-700\">First Schedule of the Value Added Tax and Supplementary Duty Act, 2012<\/strong>.<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">Standard VAT Rate:<\/strong> The general VAT rate is 15% on most goods and services.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">VAT Exemptions:<\/strong> If an NGO\u2019s activities involve the supply or import of goods or services listed in the First Schedule of the VAT Act, 2012, those specific transactions would be VAT-exempt. Examples include certain agricultural products, healthcare services, and educational services. The exemption is typically based on the <strong class=\"text-blue-700\">nature of the good\/service<\/strong>, not the entity itself.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">VAT Deduction at Source (VDS):<\/strong> Notably, NGOs approved by the NGO Affairs Bureau or the Directorate General of Social Welfare are designated as <strong class=\"text-blue-700\">withholding entities<\/strong> responsible for VAT Deduction at Source (VDS). This means they are required to deduct VAT at source when making payments to vendors for taxable supplies and remit it to the government treasury. This is a collection mechanism, not an exemption for the NGO.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">No General Exemption Based on NGO Status:<\/strong> The VAT law does not provide a general exemption for all activities or purchases made by NGOs solely due to their non-profit status.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Project-Based Exemptions (Possible but not guaranteed):<\/strong> In specific cases, particularly for projects funded by international donors or focused on critical social welfare, <strong class=\"text-blue-700\">project-specific VAT exemptions<\/strong> might <strong class=\"text-blue-700\">be granted through Special Regulatory Orders (SROs) issued by the NBR<\/strong>. These are not automatic and require explicit approvals.<\/li>\n<p> <\/p>\n<li><strong class=\"text-blue-700\">Import VAT:<\/strong> Unless a specific exemption is officially notified, the import of goods by NGOs is generally subject to 15% VAT, payable at the time of import.<\/li>\n<p> <\/ul>\n<p> <\/section>\n<p>  <\/p>\n<section class=\"mb-10\"> <\/p>\n<h2 class=\"text-3xl font-bold mb-4\">Top Law Firms in Dhaka for NGO Legal & Regulatory Support<\/h2>\n<p> <pee class=\"mb-4\">Navigating the intricacies of <strong class=\"text-blue-700\">NGO law in Bangladesh<\/strong>, including <strong class=\"text-blue-700\">NGO registration<\/strong>, <strong class=\"text-blue-700\">governance<\/strong>, <strong class=\"text-blue-700\">tax matters<\/strong>, and <strong class=\"text-blue-700\">regulatory compliance<\/strong>, demands specialized legal expertise. Several law firms in Dhaka are highly regarded for their robust practice in this sector:<\/pee> <\/p>\n<ul class=\"list-disc pl-5 space-y-2\"> <\/p>\n<li><strong class=\"text-blue-700\">LegalSeba LLP:<\/strong> With a demonstrated focus on NGO registration, governance, and tax matters, Legal Seba LLP offers comprehensive legal services tailored to non-profit organizations. Their expertise extends to navigating the complexities of the Foreign Donations (Voluntary Activities) Regulation Act, 2016, and the Income Tax Act, 2023, providing crucial support for both local and international NGOs. Their website indicates strong experience in <strong class=\"text-blue-700\">NGO formation and legal advisory (LegalSeba)<\/strong>.<\/li>\n<p> <\/ul>\n<p> <pee class=\"mt-4\">When selecting a law firm, it\u2019s vital for NGOs to prioritize firms with proven experience in <strong class=\"text-blue-700\">NGO registration Bangladesh<\/strong>, deep understanding of the <strong class=\"text-blue-700\">FDRA 2016<\/strong>, expertise in <strong class=\"text-blue-700\">NGO tax exemptions<\/strong> under the Income Tax Act, 2023, and a strong track record in ensuring <strong class=\"text-blue-700\">regulatory compliance<\/strong> with the NGOAB and other authorities. This ensures comprehensive <strong class=\"text-blue-700\">legal protection<\/strong> and seamless operations for your organization.<\/pee> <\/section>\n<p> <\/div>\n<p><\/body><\/html>[\/et_pb_code][et_pb_code _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<!DOCTYPE html><html lang=\"en\"><head> <meta charset=\"UTF-8\"> <meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\"> <title>NGO Legal & Regulatory Framework in Bangladesh<\/title> <script src=\"https:\/\/cdn.tailwindcss.com\"><\/script> <link href=\"https:\/\/fonts.googleapis.com\/css2?family=Inter:wght@400;600;700&display=swap\" rel=\"stylesheet\"> <\/p>\n<style> body { font-family: 'Inter', sans-serif; background-color: #f0f4f8; \/* Light blue-gray background *\/ color: #333; } .container { max-width: 1200px; margin: 0 auto; padding: 1rem; } .card { background-color: #ffffff; border-radius: 12px; box-shadow: 0 4px 12px rgba(0, 0, 0, 0.08); padding: 1.5rem; margin-bottom: 1.5rem; transition: transform 0.2s ease-in-out; } .card:hover { transform: translateY(-5px); } .section-title { color: #1a73e8; \/* Google Blue *\/ font-weight: 700; margin-bottom: 1rem; text-align: center; } .sub-section-title { color: #3f51b5; \/* Indigo *\/ font-weight: 600; margin-top: 1rem; margin-bottom: 0.5rem; } .list-item { display: flex; align-items: flex-start; margin-bottom: 0.5rem; } .list-icon { color: #4caf50; \/* Green checkmark *\/ margin-right: 0.5rem; font-size: 1.2em; line-height: 1.5; \/* Align with text *\/ } .bullet-point { color: #1a73e8; \/* Blue bullet *\/ margin-right: 0.5rem; font-size: 1.2em; line-height: 1.5; } .text-small { font-size: 0.9em; color: #555; } .note { background-color: #fff3e0; \/* Light orange for notes *\/ border-left: 4px solid #ff9800; \/* Orange border *\/ padding: 0.75rem; border-radius: 4px; margin-top: 1rem; font-size: 0.9em; color: #664a00; } .footer-note { font-size: 0.85em; color: #666; text-align: center; margin-top: 2rem; padding-top: 1rem; border-top: 1px solid #e0e0e0; } \/* Responsive adjustments *\/ @media (min-width: 640px) { \/* Small screens and up *\/ .grid-cols-1-sm-2 { grid-template-columns: repeat(2, minmax(0, 1fr)); } } @media (min-width: 1024px) { \/* Large screens and up *\/ .grid-cols-1-lg-3 { grid-template-columns: repeat(3, minmax(0, 1fr)); } } <\/style>\n<p><\/head><body class=\"p-4\"> <\/p>\n<div class=\"container\"> <\/p>\n<h1 class=\"text-3xl md:text-4xl font-bold text-center text-gray-800 mb-6 section-title\"> Navigating NGO Law in Bangladesh: A Comprehensive Infographic <\/h1>\n<p> <pee class=\"text-center text-gray-600 mb-8 max-w-2xl mx-auto\"> Understanding the multifaceted legal and regulatory environment is crucial for Non-Governmental Organizations (NGOs) operating in Bangladesh. This infographic provides a detailed overview of the key aspects. <\/pee>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Primary Regulatory Authorities<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 lg:grid-cols-3 gap-6\"> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">NGO Affairs Bureau (NGOAB)<\/h3>\n<p> <pee class=\"text-sm\">Primary body under Prime Minister’s Office for NGOs receiving foreign funds. Governed by **Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA)**. Acts as a “one-stop shop”.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Dept. of Social Services (DSS)<\/h3>\n<p> <pee class=\"text-sm\">Under Ministry of Social Welfare. Registers NGOs providing welfare services (children, women, disabled). Governed by **Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (SWO)**.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">RJSC & Firms<\/h3>\n<p> <pee class=\"text-sm\">Registrar of Joint Stock Companies and Firms (Ministry of Commerce). Registers NGOs as societies (**Societies Registration Act, 1860**) or non-profit companies (**Companies Act, 1994**).<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">DWCA<\/h3>\n<p> <pee class=\"text-sm\">Department of Women and Children Affairs (Ministry of Women and Children Affairs). Registers organizations working for women and children’s welfare.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">GNCC<\/h3>\n<p> <pee class=\"text-sm\">Government NGO Consultative Council. Fosters dialogue and cooperation between government and NGOs.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Legal Foundations & Formation<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 lg:grid-cols-3 gap-6\"> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Societies Registration Act, 1860<\/h3>\n<p> <pee class=\"text-sm font-semibold\">Most Common NGO Formation<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>For literary, scientific, charitable purposes.<\/li>\n<p> <\/p>\n<li>Requires 7+ individuals\/legal persons.<\/li>\n<p> <\/p>\n<li>Not a true legal person (sues in officers’ names).<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Trust Act, 1882<\/h3>\n<p> <pee class=\"text-sm font-semibold\">For Charitable Trusts<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>For any lawful purpose (private\/public).<\/li>\n<p> <\/p>\n<li>No government registration required.<\/li>\n<p> <\/p>\n<li>Trustee is legal owner, personally liable for breach.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Companies Act, 1994 (Sec. 26 & 27)<\/h3>\n<p> <pee class=\"text-sm font-semibold\">Non-Profit Companies<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>For promoting commerce, art, science, religion, charity, etc.<\/li>\n<p> <\/p>\n<li>7+ persons (2+ for private company).<\/li>\n<p> <\/p>\n<li>**Full legal personality & limited liability** (increasingly popular).<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">FDRA, 2016<\/h3>\n<p> <pee class=\"text-sm font-semibold\">Main Law for Foreign Funds<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Mandates registration with NGOAB.<\/li>\n<p> <\/p>\n<li>Requires project approval & fund management rules.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">SWO, 1961<\/h3>\n<p> <pee class=\"text-sm font-semibold\">For Welfare Services<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Mandatory registration with DSS for specific welfare activities.<\/li>\n<p> <\/p>\n<li>DSS has broad discretion and control.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-green-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Other Religious Ordinances<\/h3>\n<p> <pee class=\"text-sm\">Waqf Ordinance 1962, Hindu\/Christian\/Buddhist Religious Welfare Trust Ordinances 1983.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">NGO Registration Process Highlights<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 lg:grid-cols-3 gap-6\"> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">1. Name Clearance<\/h3>\n<p> <pee class=\"text-sm\">Obtain approval for the proposed name from the relevant authority (e.g., RJSC, NGOAB).<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">2. Application Submission<\/h3>\n<p> <pee class=\"text-sm\">Submit formal application with required documents:<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Constitutive documents (MoA, Trust Deed, etc.)<\/li>\n<p> <\/p>\n<li>Executive committee\/trustee details (NID, photos)<\/li>\n<p> <\/p>\n<li>Operational plan & activities report<\/li>\n<p> <\/p>\n<li>Source of funding & budget<\/li>\n<p> <\/p>\n<li>Proof of registered office address<\/li>\n<p> <\/p>\n<li>For foreign-funded: Donor letter of intent & foreign donation details (for NGOAB).<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">3. Payment of Fees<\/h3>\n<p> <pee class=\"text-sm\">Pay prescribed government registration fees:<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Local NGO (NGOAB): **BDT 50,000**<\/li>\n<p> <\/p>\n<li>Foreign NGO (NGOAB): **USD 9,000** (or BDT equivalent)<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">4. Security Clearance<\/h3>\n<p> <pee class=\"text-sm\">Law enforcement agencies (Special Branch, NSI) conduct checks on the organization and key members.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">5. Review & Inspection<\/h3>\n<p> <pee class=\"text-sm\">Relevant authority reviews application and may conduct physical inspections.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-yellow-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">6. Certificate Issuance<\/h3>\n<p> <pee class=\"text-sm\">Upon meeting requirements, registration certificate is issued. NGOAB certificate valid for **10 years**, renewable.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Compliance & Reporting<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 lg:grid-cols-3 gap-6\"> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Annual Reporting<\/h3>\n<p> <pee class=\"text-sm\">Submit annual reports on activities & financial statements to relevant authority (NGOAB for foreign-funded).<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Financial Audits<\/h3>\n<p> <pee class=\"text-sm\">Provide audited financial reports. NGOAB requires audits by approved auditors for foreign-funded NGOs.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Project Approval<\/h3>\n<p> <pee class=\"text-sm\">Each foreign-funded project requires approval from NGOAB (including budget and implementation plans).<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Fund Management<\/h3>\n<p> <pee class=\"text-sm\">Foreign donations must be received and managed through a designated “mother account” in a scheduled bank.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Monitoring & Inspection<\/h3>\n<p> <pee class=\"text-sm\">Regulatory authorities can monitor and inspect NGO activities and financial records.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-purple-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Restrictions<\/h3>\n<p> <pee class=\"text-sm\">Cap on administrative expenses (e.g., **20% for foreign-funded projects**). Prohibited from receiving foreign donations: election candidates, political parties, etc.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Penalties for Non-Compliance<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 sm:grid-cols-2 gap-6\"> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Societies Act, 1860<\/h3>\n<p> <pee class=\"text-sm\">No explicit provisions for fines, penalties, or involuntary dissolution within the Act itself.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Non-Profit Companies (Companies Act, 1994)<\/h3>\n<p> <pee class=\"text-sm\">May be wound up for inability to pay debts or default on filing required reports.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Trusts Act, 1882<\/h3>\n<p> <pee class=\"text-sm\">Beneficiary can seek court order to fulfill duty or remove trustee. Trusts may be wound up if purposes become unlawful\/impossible.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Voluntary Social Welfare Agencies Ordinance, 1961 (SWO)<\/h3>\n<p> <pee class=\"text-sm\">DSS can **suspend governing body** or recommend **dissolution**. Fines or **imprisonment up to 6 months** for contravention or false statements.<\/pee> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-red-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Foreign Donations Act, 2016 (FDRA)<\/h3>\n<p> <pee class=\"text-sm\">NGOAB can **inspect\/seize documents**, **cancel registration**, or stop activities. Fine of **double the donation amount** or **imprisonment up to 3 years** for contravention.<\/pee> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p>  <\/p>\n<div class=\"card\"> <\/p>\n<h2 class=\"text-2xl section-title\">Fiscal Framework for NGOs<\/h2>\n<p> <\/p>\n<div class=\"grid grid-cols-1 lg:grid-cols-2 gap-6\"> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Income Tax (Income Tax Act, 2023)<\/h3>\n<p> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>**Exemption on Donations\/Grants**: Tax-exempt if received by approved religious\/charitable institutions (approved by Tax Commissioner\/NGOAB) and spent for stated purposes (**Clause 12, Part 1, Sixth Schedule**).<\/li>\n<p> <\/p>\n<li>**Other Income**: Income from commercial activities, bank interest, rent, etc., is generally **taxable**.<\/li>\n<p> <\/p>\n<li>**Microcredit Income**: May be tax-exempt if kept in a revolving fund for microcredit activities.<\/li>\n<p> <\/p>\n<li>**Reporting**: Annual income tax returns must be filed with NBR.<\/li>\n<p> <\/p>\n<li>**NGOs as Companies**: NBR defines NGOs as companies, but tax rates may differ for certain income.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg\"> <\/p>\n<h3 class=\"sub-section-title\">Deductibility of Donations (Income Tax Act, 2023)<\/h3>\n<p> <pee class=\"text-sm font-semibold\">For Donors:<\/pee> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>Deductible for donations to approved charitable hospitals, disability organizations, Zakat Fund, public welfare\/educational institutions.<\/li>\n<p> <\/p>\n<li>**Crucial**: Recipient NGO must be approved by relevant authority (Tax Commissioner, NBR, DSS).<\/li>\n<p> <\/p>\n<li>Proper receipts and documentation required.<\/li>\n<p> <\/p>\n<li>Subject to certain limits (e.g., percentage of donor’s taxable income).<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/p>\n<div class=\"p-4 bg-blue-50 rounded-lg col-span-1 lg:col-span-2\"> <\/p>\n<h3 class=\"sub-section-title\">VAT Exemption (VAT & Supplementary Duty Act, 2012)<\/h3>\n<p> <\/p>\n<ul class=\"list-disc list-inside text-sm mt-2\"> <\/p>\n<li>**Standard VAT Rate**: 15% on most goods and services.<\/li>\n<p> <\/p>\n<li>**No Blanket Exemption**: NGOs are not automatically VAT-exempt.<\/li>\n<p> <\/p>\n<li>**Specific Exemptions**: Certain goods\/services listed in the **First Schedule** are VAT-exempt (e.g., agricultural products, healthcare, education).<\/li>\n<p> <\/p>\n<li>**VAT Deduction at Source (VDS)**: NGOs approved by NGOAB\/DSS are designated as **withholding entities** responsible for deducting VAT from vendor payments.<\/li>\n<p> <\/p>\n<li>**Project-Based Exemptions**: Possible through specific **Special Regulatory Orders (SROs)** from NBR for certain projects.<\/li>\n<p> <\/p>\n<li>**Import VAT**: Generally 15% on imported goods, unless specifically exempted.<\/li>\n<p> <\/ul>\n<p> <\/div>\n<p> <\/div>\n<p> <\/div>\n<p> <\/p>\n<div class=\"note\"> <pee class=\"font-semibold\">Disclaimer:<\/pee> <pee class=\"text-sm\">This infographic provides a general overview and is not legal advice. The legal and regulatory landscape can change, and specific situations may require tailored guidance. It is highly advisable for NGOs to consult with qualified legal and tax professionals in Bangladesh to ensure full compliance with all applicable laws and regulations.<\/pee> <\/div>\n<p> <pee class=\"footer-note\"> Infographic created based on the Legal & Regulatory Framework for NGOs in Bangladesh. <\/pee> <\/div>\n<p><\/body><\/html>[\/et_pb_code][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n<h3>\u00a0<\/h3>\n<h3><span style=\"color: #000000;\"><strong>Different Types of Non-profit Organizations in Bangladesh<\/strong><\/span><\/h3>\n<p><span style=\"color: #000000;\">Any group of individuals intending to establish a charitable organization in Bangladesh for social welfare may opt for one of the following legal entities, based on their specific objectives, long-term goals, and operational capacities, as stipulated under the relevant laws:<\/span><\/p>\n<ol>\n<li><span style=\"color: #000000;\"><strong>As a Society or Foundation<\/strong>: Register under the Societies Registration Act, of 1860, suitable for organizations focused on social, cultural, and educational activities.\u00a0<a style=\"color: #000000;\" href=\"https:\/\/legalseba.com\/bd-services\/foundation-registration-process-in-bangladesh-with-rjsc\/\">See detail guide><\/a><\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>A Charitable Trust<\/strong>:\u00a0Established under the Trust Act, of 1882, appropriate for entities aiming to provide financial assistance, healthcare, and educational support.\u00a0<a style=\"color: #000000;\" href=\"https:\/\/legalseba.com\/bd-services\/trust-registration-in-bangladesh-a-comprehensive-guideline\/\">See detail guide><\/a><\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>As a Social Welfare Organization<\/strong>: Register under Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (Ord. No. XLVI of 1961).\u00a0<a style=\"color: #000000;\" href=\"https:\/\/legalseba.com\/bd-services\/registering-social-welfare-organization-in-bangladesh\/\">See detail guide><\/a><\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>A Non-profit Trade Association<\/strong>:: Incorporated under the Companies Act, 1994, suitable for non-profit organizations intending to operate on a larger scale without issuing shares.\u00a0<a style=\"color: #000000;\" href=\"https:\/\/legalseba.com\/bd-services\/how-to-establish-a-trade-association-in-bangladesh\/\">See detail guide><\/a><\/span><\/li>\n<\/ol>\n<h3>\u00a0<\/h3>\n<h3><span style=\"color: #000000;\">Contact Us<\/span><\/h3>\n<p><span style=\"color: #000000;\">For more information or to begin the process of setting up a non-profit organization in Bangladesh, contact LegalSeba LLP today. Our team is ready to provide you with tailored assistance to ensure a seamless setup.<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">\ud83d\udcde\u00a0<strong>Phone\/WhatsApp:<\/strong>\u00a0+8801753718223<\/span><br \/><span style=\"color: #000000;\">\ud83d\udce7\u00a0<strong>Email:<\/strong>\u00a0support@legalseba.com<\/span><br \/><span style=\"color: #000000;\">\ud83c\udf10 <strong>Book A Meeting:<\/strong>\u00a0<a style=\"color: #000000;\" href=\"https:\/\/www.legalseba.com\/book-now\">LegalSeba.com\/book-now<\/a><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">Choose LegalSeba LLP for expert guidance and support in establishing your charitable organization in Bangladesh. Our comprehensive services will ensure that you meet all legal requirements efficiently and effectively. Contact us today to get started on your journey to establishing a successful presence in Bangladesh.<\/span><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Different Types of Non-profit Organizations in Bangladesh Any group of individuals intending to establish a charitable organization in Bangladesh for social welfare may opt for one of the following legal entities, based on their specific objectives, long-term goals, and operational capacities, as stipulated under the relevant laws: As a Society or Foundation: Register under […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[157],"tags":[],"class_list":["post-982","post","type-post","status-publish","format-standard","hentry","category-non-profit-organization","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"yoast_head":"\n<title>NGO Formation & Primary Regulatory Authorities in Bangladesh - 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