Initiating a non-profit organization in Pakistan is a grand gesture, however, to work under the law and get tax exemptions requires you to register with the Federal Board of Revenue (FBR). The registration of non-profit organizations in FBR has been made simpler and faster through online procedures.
This ultimate guide will take you through the entire non-profit organization under the FBR online registration process. This is done so that your NPO can get tax-deductible donations in Pakistan as per section 2(36) of income tax ordinance, 2001.
Why Register Your Non-Profit Organization with FBR?
Before we get to the steps, though, here are the reasons why we might want to do this:
- Exemptions from payment of Income Tax under Section 2(36)
- Eligibility to receive tax-deductible donations
- Greater recognition with donors and government departments
- Eligible to be on the official FBR NPO list
- Registration as a non-profit organization exempt from tax in Pakistan
Eligibility Criteria
Here are the conditions your organization needs to satisfy:
Filed under any of the following acts:
- Societies Registration Act, 1860
- Voluntary Social Welfare Agencies (Registration and Controlling) Ordinance, 1961
- Companies Act 2017 (Section 42 of the Not-for-Profit Companies)
- Trusts Act, 1882
Advances the benefit of the public (welfare, education, health, religion, etc.)
Does not give profits back to members, trustees or directors
All funds are given specifically for the purpose they were donated to.
Step-by-Step Guide
Obtain Legal Registration First
To avail the status of non-profit organizations under FBR, you cannot apply unless you have already registered with either of the above-mentioned laws.
Get NTN (National Tax Number)
Visit Iris portal: https://iris.fbr.gov.pk
Get yourself registered as “Association of Persons (AOP)”
Choose the type as Trust, Society or NPO.
Get separate NTNs for the key office bearers (Chairman, Secretary, Treasurer)
Prepare Required Documents
- Memorandum and Articles of Association/Trust deed
- Registration certificate of the relevant authority (SECP/Registrar of Societies, etc.)
- CNICs of all board members/trustees
- Most recent bank statement or evidence of funds maintenance in the account
- Audit report (if applicable)
- Rent agreement or office address with confirmation of the rent payment.
- Affidavit declaring non-distribution of profits.
Access the FBR NPO Portal
Go to: https://npo.fbr.gov.pk
This is a specialized website for NPO FBR registration and management.
Create User Account
- Enter organization NTN and verify.
- Submit mobile number and email for OTP verification
- Set password
Fill Application Form
Complete all the information carefully:
- Fill in the organization’s details.
- Enter details about members of the governing body.
- Write about objectives and activities
- Carefully, complete the financial details.
- Upload the documents.
- Declare and submit those.
Submit Application
- Review all information
- Submit the application electronically
- Write down the Application Tracking ID
FBR Verification Process
The concerned Commissioner Inland Revenue (CIR) shall:
- Verify documents
- Conduct physical verification if needed
- Issue approval or raise queries
Get Approved and Listed
Upon approval:
- Your non-profit organization gets tax exempted in Pakistan status
- On public search, appear on the list of Official FBR NPO List
- Receives certificate of approval under Section 2(36)
How to Check FBR NPO List?
Do you want to check if a company is legitimate?
Go to: https://www.fbr.gov.pk/npo-list/51148
Search by name, NTN, or registration number.
Assistance in Registration by CBM Consultants
CBM Consultants makes it easy to register the whole non-profit organization in FBR by taking care of paperwork, compliance requirements, and technical formalities for the organization. We also draft and manage legal documents, help with acquiring the NTN, and verify that all of the bylaws, financial statements, and governance information comply with FBR standards. As a part of our services, CBM Consultants files and submits with approval letter NPO application on FBR Iris portal, responds to counter queries from Exemptions Wing after taking advice on such queries from other authorities and ensures that the organization gets qualified status of tax exemption. Our experts also oversee continued compliance of annual returns, audited accounts, and proper records which is necessary for the NPO to remain on the FBR’s NPO list.
Common Mistakes to Avoid
- Incomplete documentation
- Incorrect legal status selection
- Not updating bank account details
- Delaying response to FBR queries
- Applying before obtaining legal registration
Timeline and Fees
- Processing time: Usually 15 to 45 days
- No government fee for NPO registration with FBR
- Legal and professional fees vary (PKR 25,000–80,000 depending on structure)
Conclusion
By getting your NPO registered through FBR, you will ensure that the operations of your organization remain transparent to external parties. As a charitable trust or Section 42 company, FBR registration also helps build confidence in your organization and ensures that it is running in compliance with Pakistan’s laws.
You can follow this step-by-step process and register your NPO FBR easily and you will be able to become tax-exempt non-profit organization in Pakistan.