Foundation, Society and Trust Formation in Bangladesh
Non-profit organisations in Bangladesh may be structured as a Society (registered under the Societies Registration Act, 1860), a Trust (created under the Trust Act, 1882), or a Company Limited by Guarantee (registered under Section 28 of the Companies Act, 1994). The appropriate structure depends on the organisation's purpose, governance requirements, and funding sources.
Societies
Societies are registered with the Joint District Judge's Court or the Registrar of Joint Stock Companies depending on jurisdiction. A society requires a memorandum of association specifying its objectives and a set of rules governing its management. Societies are common for professional associations, cultural organisations, and local welfare bodies.
Trusts
A trust is created by a trust deed executed by the settlor, vesting property in trustees for the benefit of beneficiaries or for charitable purposes. Charitable trusts are registered with the local Sub-Registrar's Office. Trusts are commonly used for family philanthropy and endowments.
Companies Limited by Guarantee
Section 28 of the Companies Act, 1994 allows the formation of a company limited by guarantee for charitable, educational, or other non-profit purposes. This structure is preferred by large foundations and international NGO Bangladesh chapters because it provides a familiar corporate governance framework. Contact us to discuss the right structure for your organisation.