Foundation Registration in Bangladesh with RJSC | A Comprehensive Guideline

 

Any charitable organization established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of painting and other works or art, collections of natural history, mechanical and philosophical inventions, instruments, or designs are subject to The Societies Registration Act, of 1860. Below, we outline the detailed process and our services to facilitate your society registration in Bangladesh.

 

Overview

Charitable organizations that aim to promote science, literature, the fine arts, or similar activities must be registered under the Societies Registration Act, of 1860. This registration is overseen by the Registrar of Joint Stock Companies and Firms (RJSC) under the Ministry of Commerce. The majority of non-profit organizations in Bangladesh are formed and registered under this act due to its broad scope and flexibility, permitting a wide range of activities.

 

Eligibility and Application for Foundation Registration in Bangladesh

Seven or more individuals associated with any literary, scientific, charitable purpose, or any other similar purpose may apply to form a society. The process involves subscribing to a memorandum of association and accompanying it with the society’s rules and regulations. The detailed steps are as follows:

 

Step by Step process for Foundation Registration in Bangladesh

 

Step 1: Issuance of Name Clearance from the Registrar of Joint Stock Companies and Firms (RJSC)

The first and foundational step in the registration process involves obtaining name clearance from the Registrar of Joint Stock Companies and Firms (RJSC). This clearance serves to confirm the proposed name of the society is unique, distinctive, and not already in use by any other registered entity. The applicant must submit a formal request for name clearance through the RJSC portal or office, accompanied by a nominal fee. The clearance certificate, once granted, is valid for a specific period, within which the subsequent registration application must be submitted to avoid expiration.

 

Step 2: Submission of the Registration Application

Following the issuance of name clearance, the applicant is required to submit a comprehensive registration application to the RJSC. The application must include the following essential documents:

  1. Memorandum of Association (MOA): This document outlines the society’s objectives, mission, and vision, ensuring alignment with the legal purposes defined under the Societies Registration Act, 1860.

2. Name Clearance Certificate: Proof of the previously secured name clearance.

3. List of Members: A detailed list specifying the names, contact details, and identification information of all members of the society.

4. Office Address: The official address of the organization, which must be verifiable.

5. Executive Committee Details: Comprehensive information regarding the executive committee, including: Full names and designations, Contact details, Taxpayer Identification Numbers (TIN), National Identification Document (NID) numbers

6. Constitution/Bylaws: The governing rules and regulations that dictate the operational framework of the society, including member rights, roles, and organizational hierarchy.

These documents are submitted physically or online, as per the RJSC’s specified procedures, along with an application form signed by the designated authority of the society.

Step 3: Payment of Government Fees for Foundation Registration

Once the application is submitted, the applicant must pay the requisite government fees, which vary based on the type and scale of the society’s activities. Payment can usually be made through government treasury challans, online banking systems, or designated banks, depending on the procedures stipulated by the RJSC. Proof of payment must be attached to the application to proceed to the next steps. You may also make the payment online.

Step 4: Security Clearance and Verification for Foundation Registration in Bangladesh

After the initial application review, a security clearance process is initiated. This involves an investigation conducted by law enforcement agencies, including the Special Branch (SB) of Police and National Security Intelligence (NSI). The security check typically covers the following:

•Verification of Officials: Validation of the personal and professional details of executive committee members, including permanent and present addresses, criminal record checks, and tax compliance.

•Office Location Inspection: Physical verification of the office address provided during the application process.

•Assessment of Charitable History: Evaluation of any prior charitable or non-profit activities conducted by the society or its members to ensure credibility and authenticity.

This process ensures the society’s alignment with national interests, security protocols, and public order.

Step 5: Inspection, Monitoring, and Review of Foundation Registration in Bangladesh

The concerned authorities, including officers from the RJSC and potentially other regulatory bodies, will conduct a thorough inspection and review of the society’s documentation, operations, and compliance status. This stage may involve:

•Field Inspections: Visits to the society’s declared office to verify infrastructure, personnel, and operational capacity.

•Document Scrutiny: Detailed examination of submitted documents to ensure accuracy, legitimacy, and adherence to the provisions of the Societies Registration Act, 1860.

•Compliance Verification: Cross-checking the society’s activities and objectives with legal and regulatory requirements to confirm compliance.

The inspection team may provide recommendations or request clarifications if any discrepancies are found, which the society must address promptly.

Step 6: Issuance of the Registration Certificate for Foundation

Upon successful completion of the inspection and review process, and if all criteria are met, the RJSC will issue a formal registration certificate to the society. This certificate serves as legal proof that the society is officially registered under the Societies Registration Act, 1860, granting it the rights and privileges to operate as a legal entity.

The registration certificate includes key details such as:

•Registration number, Date of registration, Name of the society and Scope of activities

The society is thereafter required to maintain compliance with reporting and operational requirements as stipulated by the relevant laws and regulations.

Key Considerations

Legal Status: A society registered under this Ordinance is recognized as a separate legal entity. It must commence or defend legal proceedings in the name of the organization.

Membership Requirements: The organization must have more than seven founding or executive committee members.

Foreign Donations: Once the Foundation is registered, it is not entitled to receive any foreign donation. Organizations seeking to receive or utilize foreign donations must obtain Foreign Donations (FD) Registration from the NGOAB.

To apply for the NGO Bureau Registration, a Foundation following its incorporation needs the following documents.

  1. Completed FD-1 Form – 9 copies
  2. List of Executive Committee members according to the constitution – 3 copies
  3. Passport size photos and copies of national ID cards of Executive Committee members – 6 copies
  4. List of Executive Committee approved by the relevant authority and copy of registration certificate – 3 copies
  5. Constitution (approved by registration authority) – 3 copies
  6. Activity report of the organization – 3 copies
  7. Plan of Operation (work methodology and organogram, signed by Chairperson) – 6 copies
  8. Letter of recommendation from parent organization (attested by organization head) – 6 copies
  9. Minutes of the general meeting regarding the formation of the Executive Committee with attendance sheet of members present – 6 copies
  10. Treasury challan of Tk. 50,000 (fifty thousand taka) deposited to code no. 1-0323-0000-1836 for registration of foreign NGO – 3 copies
  11. List of general members with name, father’s/husband’s name, address and national ID number for each member – 3 copies
  12. Treasury Chalan showing a deposit of 15% VAT to code no. 1-1133-0035-0391 – 3 copies
  13. Bangladesh Bank Enquiry Form-1 (for individuals) and Form-2 (for proprietorship/partnership/limited or any other company) – 3 copies
  14. Audit report (if applicable) and source of funds – 3 copies
  15. Deed/agreement/office rent document for organization’s office – 6 copies
  16. List of potential manpower – 3 copies
  17. Proof of completing all financial transactions including salaries through banking channels – 6 copies
  18. Operational guidelines – 3 copies

 

Annual Returns: An annual return must be submitted to the RJSC to maintain compliance with regulatory requirements. The yearly list of managing bodies is to be filed within 14 days of the AGM or in January if the rules do not provide for an AGM.

Dissolution: The organization may be dissolved by a vote of three-fifths of its members. If the government is involved in the dissolution process, permission from the government is required.

By adhering to these guidelines and fulfilling the necessary requirements, your organization can successfully register as a Socical Development Organization, enabling it to operate effectively within Bangladesh’s legal framework.

 

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:

  1. As a Society or Foundation: Register under the Societies Registration Act, of 1860, suitable for organizations focused on social, cultural, and educational activities. See detail guide>
  2. A Charitable Trust: Established under the Trust Act, of 1882, appropriate for entities aiming to provide financial assistance, healthcare, and educational support. See detail guide>
  3. As a Social Welfare Organization: Register under Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (Ord. No. XLVI of 1961). See detail guide>
  4. A Non-profit Trade Association:: Incorporated under the Companies Act, 1994, suitable for non-profit organizations intending to operate on a larger scale without issuing shares. See detail guide>

The choice of legal entity should align with the organization’s mission, vision, and planned operational framework.

 

Our Services

At LegalSeba, we offer end-to-end assistance in the society registration process, ensuring compliance with all regulatory requirements and facilitating a smooth application process. Our services include:

Expert Consultation: We provide expert advice on eligibility criteria, documentation, and regulatory compliance, tailored to your specific needs.

Document Preparation: Our team assists in preparing and collecting all necessary documentation, ensuring that your application meets all legal requirements.

Application Management: We manage the entire application process, from submission to approval, ensuring meticulous adherence to all procedural steps.

Continuous Follow-up: We maintain regular communication with regulatory bodies to track the status of your application and promptly address any queries or additional requirements.

Inspection Preparation: We assist in preparing for regulatory inspections, ensuring that your infrastructure and operations comply with all standards.

Lobbying with Authorities: We facilitate effective communication with government authorities to streamline the registration process.

By partnering with LegalSeba, you can confidently navigate the complex regulatory environment and focus on your organization’s mission. Contact us today to begin your journey towards establishing a registered society in Bangladesh.

 

Contact Us

For personalized assistance and more information on society registration,  book a consultation with our experts by visiting LegalSeba.com/book-now or contact us at:

Phone/WhatsApp: +8801753718223
Email: support@legalseba.com