How to Register an NGO in Bangladesh

 

What is a Non – Governmental organization (NGO)

A non-governmental organization is a legal entity that is not a direct part of a government, independent from government control, and not a direct competitor in politics. Generally, NGOs are established by a group of individuals to make a positive change in society. They collect funds from various donors around the world and try to serve their aim. NGOs can be of various kinds, such as zonal, national, international etc.

How Does it differ from other organizations?

Now modern organizations are very complex in stricture, for example, NGOs are collaborating with the government and under some bindings too. So thing blurs from time to time, generally, NGOs are considered non–profit, non–dependent on the government to fulfil their particular purpose but they can be a helping hand of the government, can raise capital and earn profit to fulfil their purpose. They will not follow the company law or business law but they can be involved in the business as a separate entity of a linked NGO. So careful observation is much needed both on de facto and de jure activities of an NGO. Thus it can be concluded that the formation procedure, objective and activities of an organization shall be the final proof that is an NGO; it must not be a fully profitable business institution, nor does it deserve to be a part of the government where it works for the government by their rule, it must fulfil the purpose of its constitution and act accordingly.

 

What are the concerns regarding NGOs?

In the face of NGOs, it may look like a God-sent organization for the betterment of this world but the reality might be a little bit different, as we mentioned earlier there are many classifications and kinds of NGOs around the world. There are Zonal, National or International NGOs. Based on the funding we can further broaden the category of NGO s like locally funded, Government funded, Foreign Government funded, funded by national and international institutions and bodies and NGOs cover a wide range of sectors for example:

 

NGO programs typically include:

Human Rights
Woman Rights
Humanitarian Situation
Health issue
Education
Responding to health crises
Environmental issues
Economic programs
Skills development
Local development
Social issues
Religious perspective ( support and help)
Research

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A. How to register an Internation NGO (INGO) in Bangladesh

Primarily operating under the Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA), the registration of an NGO requires the completion of specific tasks.

Registration Procedure

The process of registering a Non-Governmental Organization (NGO) in Bangladesh and ensuring its ongoing compliance is governed by the Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA). This act mandates that NGOs operating with foreign donations must adhere to specific procedures and regulatory requirements to maintain transparency and accountability. Below is a detailed guide on the registration process and ongoing compliance requirements for NGOs in Bangladesh.

 

1. Registration Procedure

Step 1: Eligibility and Initial Preparation

  • Entity Formation: Ensure that the NGO is formed as a non-political, non-profit voluntary organization registered under the prevailing laws of Bangladesh. The organization must be committed to conducting voluntary activities within the country.
  • Project Definition: Clearly define the voluntary activities the NGO intends to conduct. These activities should align with the purposes specified in the FDRA, including social, religious, cultural, educational, healthcare, environmental conservation, and other charitable activities.

Step 2: Application Submission

  • Application Form: Submit an application for registration to the Director General of the NGO Affairs Bureau in the prescribed manner along with the prescribed fee.
  • Required Documentation: The application must include:
    • The amount of foreign donation expected.
    • The source of the donation.
    • The purposes for which the donation will be used.
    • Relevant information about the organization, including its constitution, board of directors, and operational plans.

Step 3: Verification and Approval

  • Preliminary Scrutiny: The NGO Affairs Bureau will conduct an initial review of the application and obtain the opinions of the Ministry of Home Affairs and the Financial Institutions Division of the Ministry of Finance.
  • Issuance of Certificate: If the application meets all requirements, the Director General will issue a registration certificate valid for ten years. This certificate is renewable every ten years, provided the NGO remains in compliance with all regulatory requirements.

Step 4: Renewal of Registration

  • Application for Renewal: NGOs must submit an application for renewal six months before the expiry of the current registration, along with the prescribed renewal fee.
  • Review and Issuance: The Bureau will review the NGO’s activities over the past ten years. If the activities are found to be satisfactory, a renewal certificate for another ten years will be issued.

2. Project Approval and Implementation

In Bangladesh, NGOs must submit a detailed project proposal to the NGO Affairs Bureau, including objectives, budget, expected outcomes, and opinions from relevant ministries. The Bureau reviews the proposal, often seeking feedback from the relevant ministry, and may return it for modifications to ensure alignment with development goals.

Once approved, project execution must remain within the defined scope and budget, with administrative expenses limited to 20%. For disaster relief projects, the Bureau must approve and release funds within 24 hours due to the urgency.

Throughout the project, NGOs must provide regular progress reports, demonstrating compliance and advancement. A comprehensive final report is required upon completion, detailing activities, outcomes, and financial expenditures. This structured process ensures transparency, accountability, and that projects are effectively managed to benefit the community.

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3. Financial Management and Reporting

NGOs receiving foreign donations in Bangladesh must adhere to specific regulations regarding bank accounts, financial reports, and audits to maintain transparency and accountability. All foreign donations must be received through a designated bank account, often referred to as the “mother account,” in a scheduled bank. Before the release of any funds from this account, the NGO must secure an approval letter from the NGO Affairs Bureau. This step is essential for the proper monitoring of fund inflows and ensures that donations are used in compliance with government regulations.

The Bangladesh Bank also plays a role in overseeing foreign donations. It provides semi-annual reports of all foreign currency transactions related to these donations to both the NGO Affairs Bureau and the Economic Relations Division. This ongoing reporting process ensures that all stakeholders are informed about the financial activities of NGOs, promoting greater accountability.

NGOs must also prepare detailed annual financial statements, capturing all the financial activities throughout the year. This includes the maintenance of precise records for every transaction, which should be organized in a manner that is easily accessible and auditable. To enhance financial transparency, NGOs are required to maintain extensive documentation, such as receipts, vouchers, and transaction logs for all expenditures. Importantly, expenditure vouchers must be preserved for at least five years after the completion of the project. This ensures that, should the need for an audit arise, all records are available to verify the correct and efficient use of funds.

These requirements form a comprehensive framework that supports accountability and integrity in the use of foreign donations. They provide a safeguard against misuse of funds and ensure that financial practices align with the objectives of donors, government policies, and the intended beneficiaries of the projects.

4. Monitoring and Evaluation

In Bangladesh, NGOs must undergo rigorous inspection and monitoring processes to ensure they are functioning transparently and in line with national regulations. The NGO Affairs Bureau reserves the right to conduct regular inspections to keep a close eye on the activities of NGOs, making sure they are adhering to both legal requirements and the intended objectives of their programs. These inspections are essential for verifying the proper utilization of funds and ensuring that projects are implemented as planned. NGOs are obligated to fully cooperate during these inspections by providing all necessary documents and reports requested by the Bureau. This cooperative relationship ensures a clear picture of how resources are being used and promotes accountability at every step.

Additionally, the NGO Affairs Bureau may, when deemed necessary, appoint third-party assessors to carry out an evaluation of the NGO’s activities. This ensures an impartial and comprehensive review, offering an external perspective on the effectiveness and integrity of the NGO’s operations. The involvement of independent assessors adds an extra layer of scrutiny, helping to uncover any inefficiencies or discrepancies that might otherwise go unnoticed. This approach is beneficial for maintaining trust between donors, government entities, and beneficiaries, as it demonstrates a commitment to transparency and quality control.

Local coordination is also an integral part of the monitoring framework. Divisional Commissioners, Deputy Commissioners, and Upazila Executive Officers play a critical role in overseeing NGO activities within their jurisdictions. This localized oversight enables prompt action and effective coordination, as these officials are familiar with the specific needs and challenges of their regions. Regular meetings and reports between these local authorities and NGOs help align activities with regional development plans and enhance accountability at the local level.

In regions like the Chittagong Hill Tracts, coordination becomes even more specialized. The Chittagong Hill Tracts Regional Council is tasked with monitoring and coordinating the activities of NGOs operating in this unique area. This body ensures that projects are sensitive to the cultural, social, and environmental dynamics of the region, which often require specialized approaches to development. By having a dedicated council in place, the government can ensure that NGOs are not only effective in their work but also respectful of the diverse communities they serve.

These mechanisms, including regular inspections, the possibility of third-party evaluations, and multi-level local coordination, collectively form a robust system that ensures NGOs operate transparently and effectively. It enhances the impact of their projects and builds trust with both the government and local communities, ultimately ensuring that development goals are met in a responsible manner.

 

5. Recruitment and Travel of Foreign Experts

Appointment Approval

  • Application for Appointment: Submit an application to the Director General for the appointment of foreign experts, advisors, or officers. This application must be within the man-months approved by the Bureau.
  • Security Clearance: Obtain security clearance from the Ministry of Home Affairs for all foreign appointments.

Foreign Travel

  • Notification to Bureau: Inform the NGO Affairs Bureau about any foreign travel undertaken by NGO personnel for official purposes.
  • Budget Compliance: Ensure that all foreign travel expenses are covered within the project’s approved budget.

6. Reporting Obligations

NGOs in Bangladesh are required to submit comprehensive annual reports to the Director General, providing detailed insights into all their activities and financial transactions for the fiscal year. These reports must be submitted within a stipulated deadline, ensuring that all parties involved—government bodies, stakeholders, and beneficiaries—have timely access to the NGO’s performance and financial accountability. The annual report is a crucial document that includes a summary of all the projects carried out during the year, detailed financial statements, and an assessment of the outcomes achieved in relation to the set objectives. This enables a transparent evaluation of the NGO’s impact, financial health, and adherence to its mission, allowing for a thorough review of whether resources are being effectively allocated.

In addition to the standard reporting requirements, the Director General holds the authority to request additional information or reports at any given time. This provision ensures that the government can obtain real-time updates on specific aspects of the approved projects if needed. It allows for greater oversight and quick intervention if any discrepancies or concerns arise during the implementation of a project. By being prepared to furnish such information promptly, NGOs demonstrate their commitment to transparency and flexibility in addressing any inquiries that may emerge from the oversight bodies.

A crucial component of accountability is the declaration of foreign donations. NGOs must submit a detailed declaration that outlines all foreign donations received, specifying their sources and how these funds were utilized. The submission must follow the timelines and format specified by the Director General, ensuring consistency in reporting across all NGOs. This declaration is essential for maintaining public trust, as it demonstrates the integrity of the NGO in managing funds from international donors and verifies that the financial resources are used for the intended purposes.

These reporting requirements, including annual reports, ad-hoc requests for information, and the declaration of foreign donations, form the foundation of a structured and transparent monitoring system. They not only help in tracking the effectiveness of projects and responsible fund usage but also facilitate a deeper understanding of how NGOs contribute to the broader development goals of the country. By maintaining these standards, NGOs foster a culture of accountability and transparency, building confidence among stakeholders and enhancing their credibility within the communities they serve.

 

 

Required Documents for Local NGO Registration under Foreign Donations (Voluntary Activities) Regulations Act, 2016:

  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 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 general meeting regarding formation of Executive Committee with attendance sheet of members present – 6 copies
  10. Treasury chalan 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 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

Required Documents for Foreign NGO Registration under Foreign Donations (Voluntary Activities) Regulations Act, 2016:

  1. FD-1 Form (signed by Chief Executive in Bangladesh) – 9 copies
  2. Certificate of Incorporation in the country of origin – 3 copies
  3. Constitution – 6 copies
  4. Activities Report – 6 copies
  5. Plan of Operation (Work/Organogram) – 4 copies
  6. Decision of the committee/Board to open office in Bangladesh – 4 copies
  7. Letter of Appointment of the Country Representative – 4 copies
  8. Copy of Treasury Chalan in support of depositing US$ 9,000 or equivalent TK amount in the code 1-0323-0000-1836 and 15% VAT (Code No. 1-1133-0035-0311) – 3 copies
  9. Deed of agreement stamp of TK.300/- with the landlord in support of opening the office in Bangladesh – 6 copies
  10. List of Executive Committee (foreign) – 6 copies
  11. Letter of Intent – 3 copies
  12. Bangladesh Bank submitted Enquiry Form-1 & 2 – 6 copies
  13. Resume of Head of Organization in Bangladesh – 6 copies
  14. List of Manpower – 6 copies

Note: All documents from abroad should be notarized by Justice of Peace or attested by Bangladesh Embassy.

The process of registering a Non-Governmental Organization (NGO) in Bangladesh and ensuring its ongoing compliance is governed by the Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA). This act mandates that NGOs operating with foreign donations must adhere to specific procedures and regulatory requirements to maintain transparency and accountability. Below is a detailed guide on the registration process and ongoing compliance requirements for NGOs in Bangladesh.

Prohibited Activities and Penalties

In Bangladesh, regulations strictly control who can receive foreign donations. Political candidates, members of parliament, and government officers are prohibited from receiving such funds to prevent misuse, conflicts of interest, and undue political influence. This ensures foreign donations are used solely for non-political development and charitable activities.

The Foreign Donations Regulation Act (FDRA) outlines penalties for violations, ranging from warnings and suspensions to project cancellations and fines. The Director General may enforce these penalties, including fines equal to the foreign donations received or up to three times that amount if donations are accepted without prior approval. These strict measures deter misuse, ensuring donations are properly regulated and used for legitimate purposes.

By defining prohibited recipients and enforcing penalties for violations, this regulatory framework ensures foreign donations are managed transparently and benefit intended communities, aligning with national development goals.

 

Different Types of Charitable Organizations in Bangladesh

Any group of individuals intending to establish a charitable organization in Bangladesh for the purpose of 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, 1860, suitable for organizations focused on social, cultural, and educational activities. See detail guide>
  2. A Charitable Trust: Established under the Trust Act, 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. Charitable Company: 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.

 

Conclusion

The registration and ongoing compliance of NGOs in Bangladesh under the FDRA is a rigorous process designed to ensure accountability and transparency. LegalSeba provides expert assistance in navigating these complex regulatory requirements, ensuring that NGOs can focus on their mission while remaining compliant with all legal obligations.

For personalized assistance and more information on NGO registration and compliance in Bangladesh, contact LegalSeba and book a consultation with our experts.

Contact Us

For more information or to begin the process of setting up a branch office in Bangladesh, contact LegalSeba.com today. Our team is ready to provide you with tailored assistance to ensure a seamless setup.

Choose LegalSeba.com for expert guidance and support in establishing your NGO 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.