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.

NGO Registration Procedure in Bangladesh

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.

 

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.

 

3. Financial Management and Reporting

NGOs receiving foreign donations in Bangladesh must comply with regulations regarding bank accounts, financial reporting, and audits to ensure transparency. Donations must be deposited into a designated “mother account” in a scheduled bank, and funds can only be released with approval from the NGO Affairs Bureau. The Bangladesh Bank oversees foreign currency transactions, providing semi-annual reports to the NGO Affairs Bureau and Economic Relations Division.

NGOs are required to maintain detailed annual financial statements, with proper documentation for all transactions, including receipts, vouchers, and logs. Expenditure vouchers must be retained for five years. These measures ensure proper fund usage, transparency, and compliance with government policies and donor requirements.

 

4. Monitoring and Evaluation: Inspection and Monitoring Framework for NGOs in Bangladesh

The regulatory framework governing Non-Governmental Organizations (NGOs) in Bangladesh is designed to ensure accountability, transparency, and alignment with national development goals. This framework includes systematic inspection and monitoring processes, which are crucial for maintaining the integrity and effectiveness of NGO activities. Below are the key components of this framework:

  1. Regular Inspections by the NGO Affairs Bureau
  • The NGO Affairs Bureau (NGOAB) holds the authority to conduct periodic inspections of NGO activities to ensure compliance with legal requirements and program objectives.
  • Inspections focus on verifying the appropriate use of funds and ensuring that projects are implemented as planned.
  • NGOs are required to fully cooperate by providing all necessary documents, records, and reports requested during these inspections.
  1. Third-Party Evaluation
  • The NGO Affairs Bureau may appoint independent third-party assessors to evaluate the NGO’s operations when needed.
  • These assessments offer an unbiased review of operational efficiency, resource utilization, and compliance with the NGO’s stated objectives.
  • Third-party evaluations enhance transparency by providing impartial insights, identifying areas for improvement, and ensuring accountability to donors, beneficiaries, and regulatory authorities.
  1. Local Coordination and Oversight
  • Local government authorities, including Divisional Commissioners, Deputy Commissioners, and Upazila Executive Officers, are responsible for overseeing NGO activities within their respective jurisdictions.
  • These authorities facilitate coordination between NGOs and local development priorities through regular meetings, reporting mechanisms, and oversight.
  • Localized oversight ensures that NGO programs are responsive to the region-specific needs and challenges.
  1. Specialized Monitoring in the Chittagong Hill Tracts
  • In the Chittagong Hill Tracts, the Chittagong Hill Tracts Regional Council oversees and coordinates NGO activities in the region.
  • This specialized body ensures that projects are culturally, socially, and environmentally sensitive to the unique dynamics of the area.
  • The Council promotes inclusive and respectful development practices that address the needs of diverse communities in the region.
  1. Integrated Approach to Transparency and Accountability
  • Comprehensive Oversight Mechanisms: Regular inspections, third-party evaluations, and localized coordination work together to establish a multi-tiered monitoring system.
  • Promotion of Accountability: These measures ensure responsible operations, fostering trust among stakeholders such as donors, government authorities, and beneficiary communities.
  • Alignment with Development Goals: The structured oversight framework ensures that NGO activities contribute effectively to national and regional development objectives while maintaining integrity and compliance.

This comprehensive inspection and monitoring framework serves as a cornerstone for ensuring the transparency, accountability, and alignment of NGO activities with both local and national development priorities.

 

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

Annual Reporting Obligations

In accordance with regulatory requirements, NGOs operating in Bangladesh must submit comprehensive annual reports to the Director General. These reports must provide a detailed overview of all activities and financial transactions for the preceding fiscal year, ensuring transparency and accountability. The report includes:

  • A summary of projects implemented during the year.
  • Detailed financial statements reflecting the NGO’s financial health.
  • An assessment of project outcomes against stated objectives.

The timely submission of these reports is critical for enabling the government, stakeholders, and beneficiaries to assess the NGO’s performance, financial integrity, and adherence to its mission.

Ad-Hoc Reporting Authority

The Director General retains the authority to request additional information or reports from NGOs at any time. This provision allows the government to:

  • Obtain real-time updates on specific project aspects.
  • Address potential discrepancies or concerns promptly.

NGOs must be prepared to provide such information when required, demonstrating their commitment to transparency and efficient oversight.

Declaration of Foreign Donations

A key element of financial accountability is the submission of declarations regarding foreign donations. NGOs must provide:

  • A detailed breakdown of all foreign funds received.
  • Disclosure of donor identities and the intended use of such funds.

This declaration must comply with timelines and formats prescribed by the Director General. By ensuring consistency in reporting, NGOs reinforce public trust and validate the responsible use of international donor funds.

Transparency and Accountability Framework

The annual reporting process, ad-hoc reporting requirements, and foreign donation declarations collectively establish a robust monitoring system for NGOs. These measures enable the government to:

  • Track the effectiveness of projects.
  • Evaluate resource allocation and fund utilization.
  • Assess the contribution of NGOs to national development goals.

By adhering to these requirements, NGOs foster a culture of transparency, maintain credibility among stakeholders, and build trust 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 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 plan.

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.