Legal Framework for Foreign Donations
Statutory Registration Requirements
Before applying to the NGO Affairs Bureau (NGOAB), an entity must first be incorporated under one of the following laws: the Societies Registration Act 1860, the Trust Act 1882, or as a non-profit company under Section 28 of the Companies Act 1994.
| Registration Phase | Primary Authority | Statutory Reference | Estimated Timeline |
|---|---|---|---|
| Primary Incorporation | RJSC / Social Welfare Dept | Companies Act 1994 / Societies Act 1860 | 30-60 Days |
| NGOAB Registration | NGO Affairs Bureau (PMO) | Section 4, FD(VA)R Act 2016 | 90-180 Days |
| Project Approval | NGO Affairs Bureau | Section 6, FD(VA)R Act 2016 | 45 Days |
| Foreign Fund Clearance | Bangladesh Bank / NGOAB | Section 8, FD(VA)R Act 2016 | Ongoing |
The NGOAB Registration Roadmap
Step-by-Step Procedure
- Application Submission: Submit Form-FD 1 along with the constitution, board resolution, and treasury challan of BDT 50,000 (for local NGOs) or USD 2,500 (for foreign NGOs) as per the Foreign Donations (Voluntary Activities) Regulation Rules 2016.
- Security Clearance: The NGOAB forwards the file to the Ministry of Home Affairs for NSI/DGFI clearance regarding the antecedents of the board members.
- Project Proposal (FD-6): Once registered, every specific project involving foreign funds must be approved under Section 6 of the Act.
- Annual Audit: Under Section 12, NGOs must submit an annual audit report conducted by a CA firm from the NGOAB-approved panel.
Compliance and Penalties
Failure to comply with the Foreign Donations (Voluntary Activities) Regulation Act 2016 can lead to severe consequences. Under Section 14, the NGOAB has the power to cancel or suspend the registration if the NGO engages in anti-state activities, finances terrorism, or provides false information.
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Schedule a Legal ConsultationFrequently Asked Questions
What is the validity period of an NGOAB registration?
Pursuant to Section 4(4) of the Foreign Donations (Voluntary Activities) Regulation Act 2016, the registration remains valid for 10 years, subject to renewal applications submitted 6 months prior to expiry.
Can an NGO receive foreign funds without NGOAB registration?
No. Section 3 of the Foreign Donations (Voluntary Activities) Regulation Act 2016 strictly prohibits any person or organization from receiving or using foreign donations for voluntary activities without prior registration and project approval from the Bureau.
What are the tax obligations for registered NGOs?
NGOs must obtain a TIN and file annual tax returns under Section 166 of the Income Tax Act 2023. While project funds may be exempt, any commercial income generated is taxable unless specific exemptions are granted under Section 76.
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