NGO & Charity Registration Process in Bangladesh: A Legal Guide

Bangladesh, a nation with a vibrant civil society, sees numerous local and international non-governmental organizations (NGOs) and charitable bodies working tirelessly across various sectors. These organizations play a crucial role in social development, humanitarian aid, and community empowerment. For any such entity, understanding and navigating the NGO and Charity Registration Process in Bangladesh is paramount for legal operation and sustained impact. This comprehensive guide, brought to you by the legal expertise associated with Barrister Meheruba Mahbub, one of Bangladesh’s top lawyers, aims to demystify the intricate legal framework governing the establishment and operation of NGOs and charities in the country. For more insights into Barrister Mahbub’s legal practice, visit meheruba.com/about/.

Understanding the Landscape of NGO and Charity Registration in Bangladesh

The regulatory environment for non-profit organizations in Bangladesh is multi-faceted, involving several government authorities and legal instruments. The choice of registration pathway often depends on the nature of the organization, its objectives, funding sources, and operational scope. Broadly, NGOs and charities in Bangladesh can be categorized based on their operational reach and funding.

Types of NGOs and Charitable Organizations

• International NGOs: These are organizations registered outside Bangladesh that seek to operate within the country, often receiving foreign donations.
• National (Local) NGOs: These are organizations established and registered within Bangladesh, primarily operating with local funding or a mix of local and foreign funds.

Key Authorities Governing NGO and Charity Registration Process in Bangladesh

Several government bodies are responsible for the registration and oversight of NGOs and charitable organizations. Each authority caters to specific types of organizations or activities.

1. NGO Affairs Bureau (NGOAB)

The NGO Affairs Bureau (NGOAB), operating under the Prime Minister’s Office, is the primary regulatory body for NGOs receiving foreign donations. Both international and national NGOs intending to receive foreign funds must register with NGOAB. This registration is crucial for ensuring transparency and accountability in the utilization of foreign aid.

Legal Framework for NGOAB Registration:

• Foreign Donations (Voluntary Activities) Regulations Act, 2016 (FDRA): This is the principal law governing foreign donations and the activities of NGOs receiving such funds.

Process of Registration with NGOAB:

1. Application Submission: Organizations must submit an application to NGOAB using the prescribed FD-1 Form.
2. Document Submission: Necessary documents, including the organization’s constitution, memorandum of association, and project proposal, must accompany the FD-1 Form.
3. Fee Payment: Payment of government fees, such as treasury challan and VAT.
4. Inter-Ministerial Review: The application is forwarded to relevant ministries for their review and comments.
5. Security Clearance: A mandatory security check is conducted by law enforcement agencies, including the Special Branch of Police and National Security Intelligence.
6. Inspection and Monitoring: The Ministry conducts inspections, monitoring, and reviews of the NGO’s proposed activities.
7. Final Scrutiny and Registration: Upon satisfactory review and scrutiny by NGOAB, a letter of registration is issued, allowing the NGO to operate in Bangladesh.

The official timeframe for this process is 90 working days, though in practice, it may take 6-7 months. Registration with NGOAB is typically valid for 10 years for international NGOs, with renewal required six months prior to expiry.

2. Department of Social Services (DSS)

The Department of Social Services (DSS), under the Ministry of Social Welfare, registers organizations involved in various social welfare activities. This includes services for children, youth, women, the elderly, persons with disabilities, and other vulnerable groups.

Legal Framework for DSS Registration:

• The Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961: This ordinance, along with its related Rules of 1962, governs the registration and control of voluntary social welfare agencies.

Process of Registration with DSS:

1. Name Clearance: Obtain name clearance from the concerned office.
2. Application Submission: Submit an application in the prescribed Form-B.
3. Document Submission: Provide all required documents along with Form-B.
4. Fee Payment: Pay government fees, including treasury challan and VAT.
5. Inter-Ministerial Review: Application forwarded to concerned ministries.
6. Security Clearance: Security checks by law enforcement agencies.
7. Inspection and Monitoring: Inspection, monitoring, and review by the Ministry.
8. Final Scrutiny and Registration: Upon satisfaction, DSS issues the registration.

The DSS registration process typically takes around 5-7 months.

3. Microcredit Regulatory Authority (MRA)

For organizations involved in microfinance operations, registration with the Microcredit Regulatory Authority (MRA) is mandatory. MRA is the central body responsible for promoting, fostering, regulating, monitoring, and supervising the microfinance sector in Bangladesh.

Legal Framework for MRA Registration:

• Microfinance Regulatory Act, 2006: This act empowers MRA to regulate microfinance activities.
• Microcredit Regulatory Rules, 2010: Provides detailed rules for microcredit operations.

Organizations already registered under the Societies Registration Act, 1860; The Trust Act, 1882; The Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961; Cooperative Societies Act, 2001; or Company Act, 1994, can apply to MRA for a license to operate micro-credit programs.

Process of Registration with MRA:

1. Application Submission: Apply to MRA using the prescribed ‘Annexure A’ form.
2. Document Submission: Submit necessary documents along with ‘Annexure A’.
3. Evaluation and Fee Request: MRA evaluates the application and, if satisfied, requests payment of the license fee.
4. License Issuance: Upon receipt of the license fee, MRA issues the license. If rejected, the applicant is notified within thirty days.

4. Registrar of Joint Stock Companies and Firms (RJSC)

Many non-profit organizations choose to register with the Registrar of Joint Stock Companies and Firms (RJSC) under the Ministry of Commerce. This pathway offers flexibility for a broad range of activities.

Legal Framework for RJSC Registration:

• The Societies Registration Act, 1860: Allows for the registration of literary, scientific, and charitable societies.
• The Companies Act, 1994: Permits the incorporation of non-profit companies (Section 28 companies) limited by guarantee.

Process of Registration under the Societies Registration Act, 1860:

1. Name Clearance: Obtain name clearance from RJSC.
2. Application Submission: Seven or more persons associated with a charitable purpose can apply to RJSC with a memorandum of association and the society’s rules and regulations.
3. Document Submission: Submit all required documents along with the application.
4. Fee Payment: Payment of government fees.
5. Security Clearance: Security checks by law enforcement agencies.
6. Inspection and Review: Inspection, monitoring, and review by concerned authorities.
7. Registration Issuance: If satisfied, RJSC issues the registration.

Process of Registration under the Companies Act, 1994 (Section 28 Company):

An association can be incorporated as a non-profit company under Section 28 of the Companies Act, 1994, provided it obtains a license from RJSC. This is granted if the association promotes commerce, art, science, religion, charity, or other useful objectives, and applies its profits solely to these objectives without paying dividends to members. The registration process is similar to that under the Societies Registration Act.

5. Trust Registration

A trust can be created for any lawful purpose, including charitable activities, under the Trust Act, 1882. Trustees are responsible for managing trust property to achieve the stated objectives.

Legal Framework for Trust Registration:

• Trust Act, 1882: The primary law governing the creation and administration of trusts.

Process of Trust Registration:

1. Trust Deed Creation: A trust is created through a trust deed specifying the author’s intention, purpose, beneficiaries, and trust property.
2. Certainty of Terms: The deed must clearly indicate the intention, subject matter, and specific objectives.
3. Registration: The trust deed is registered at the Sub-Registrar Office where the NGO’s head office is located.

Currently, there is no single regulatory authority for charitable trusts, so they often register or obtain licenses from other non-profit regulatory bodies for smooth functioning and report to that respective authority.

6. Waqf Registration

Under Muslim Law, a Waqf is a permanent dedication of property for charitable or religious purposes. It is administered by a Mutawalli (trustee) according to the conditions of the Waqf instrument.

Legal Framework for Waqf Registration:

• The Waqfs Ordinance, 1962: Governs the creation and administration of Waqfs.

Process of Waqf Registration:

1. Application Submission: The Mutawalli files an application at the office of the Administrator of Waqf.
2. Registration and Record Keeping: The Administrator registers the Waqf property and maintains detailed information, including deeds, the Mutawalli’s name, and succession rules.

Challenges and Recommendations in NGO and Charity Registration Process in Bangladesh

Despite the various pathways available, the existing legal framework for NGO and charity registration in Bangladesh presents certain complexities. The absence of a uniform law means organizations must navigate different acts, ordinances, rules, and regulatory bodies based on their specific nature and objectives. This can lead to confusion and delays.

A consolidated, uniform law for the formation, functioning, and regularization of NGOs and charities in Bangladesh is an utmost need. Such a law would streamline the NGO and Charity Registration Process in Bangladesh, enhance efficiency, and foster a more conducive environment for these vital organizations to contribute to national development. For more information on legal reforms and practice areas, please visit meheruba.com/practice-areas/.

Conclusion: Expert Legal Guidance for Your NGO or Charity

The NGO and Charity Registration Process in Bangladesh, while complex, is a navigable journey with the right legal guidance. Ensuring compliance with all relevant laws and regulations from the outset is critical for the long-term success and impact of your organization. Whether you are establishing a new NGO, seeking foreign funding, or ensuring ongoing regulatory compliance, expert legal counsel is invaluable.

Barrister Meheruba Mahbub and her team possess extensive experience in assisting local and international NGOs and charitable organizations with their registration and operational needs. Our commitment is to provide clear, authoritative, and practical legal solutions. For further assistance or consultation regarding your NGO or charity’s legal requirements, please do not hesitate to contact us. You can reach out through our website at meheruba.com/contact/ or explore our blog for more legal insights.

Frequently Asked Questions (FAQs) about NGO and Charity Registration in Bangladesh

Q1: What is the primary difference between an NGO and a charity in Bangladesh?

A1: While often used interchangeably, NGOs (Non-Governmental Organizations) typically encompass a broader range of non-profit activities, including advocacy, development, and service delivery. Charities, on the other hand, are specifically focused on philanthropic activities, providing aid or support to those in need. Legally, both fall under various registration frameworks depending on their specific objectives and funding sources.

Q2: Is it mandatory for all NGOs in Bangladesh to register with the NGO Affairs Bureau (NGOAB)?

A2: Registration with the NGO Affairs Bureau (NGOAB) is mandatory for any NGO, whether local or international, that intends to receive foreign donations or grants. If an NGO operates solely on local funds and does not receive any foreign assistance, it may register with other relevant authorities like the Department of Social Services or the Registrar of Joint Stock Companies and Firms.

Q3: How long does the NGO registration process typically take in Bangladesh?

A3: The duration of the registration process varies significantly depending on the chosen authority and the completeness of the application. For instance, registration with NGOAB officially takes 90 working days but can extend to 6-7 months in practice. Registration with the Department of Social Services also typically takes 5-7 months. It is advisable to factor in potential delays and prepare all documentation meticulously.

Q4: Can a foreign individual or entity establish an NGO in Bangladesh?

A4: Yes, foreign individuals or entities can establish NGOs in Bangladesh. However, such organizations are classified as International NGOs and must undergo a stringent registration process with the NGO Affairs Bureau (NGOAB) under the Foreign Donations (Voluntary Activities) Regulations Act, 2016 (FDRA). This involves detailed scrutiny, including security clearances.

Q5: What are the consequences of operating an unregistered NGO or charity in Bangladesh?

A5: Operating an unregistered NGO or charity in Bangladesh is illegal and can lead to severe penalties. These may include fines, legal prosecution, closure of the organization, and confiscation of assets. It is crucial to complete the appropriate registration process to ensure legal compliance and avoid adverse legal repercussions.

Q6: What is the role of the Societies Registration Act, 1860, in NGO registration?

A6: The Societies Registration Act, 1860, is a foundational law that allows for the registration of various societies, including those established for literary, scientific, and charitable purposes. Many non-profit organizations in Bangladesh, particularly those not receiving foreign funds or engaged in microfinance, opt for registration under this Act through the Registrar of Joint Stock Companies and Firms (RJSC) due to its broad scope and flexibility.

Q7: Are there any specific requirements for NGOs involved in microfinance activities?

A7: Yes, NGOs engaged in microfinance activities have specific regulatory requirements. They must obtain a license from the Microcredit Regulatory Authority (MRA) in addition to their primary registration under acts like the Societies Registration Act, 1860, or the Trust Act, 1882. The Microfinance Regulatory Act, 2006, and Microcredit Regulatory Rules, 2010, govern these operations, ensuring proper oversight and adherence to financial regulations.