In Bangladesh, the registration and oversight of voluntary social welfare organizations are governed by the Voluntary Social Welfare Agencies (Registration and Control) Ordinance of 1961, and its associated rules of 1962. This legal framework ensures that organizations dedicated to various social welfare activities operate in a structured and accountable manner. 

Types of Non-Profit Organizations in Bangladesh

There are three major types of non-profit organization structures in Bangladesh, along with several other options for registering a non-profit or a social business:

1. NGO or NGO Registration – Registered under the NGO Affairs Bureau
2. Foundation, Society, and Association,  – under the Societies Registration Act
3. Non-Profit Company – Registered under the Companies Act, 1994
4. Trusts – Registered under the Trusts Act, 1882
5. Voluntary Social Welfare Organization – under the Department of Social Welfare 
6. Waqf – Registered under Waqf laws
7. Cooperative Society – Registered under the Cooperative Societies Act

Find the right business structure in Bangladesh: from sole proprietorship to limited company, with our registration guide.

Scope of Activities: Registered organizations may engage in, but are not limited to, any of the following activities: child welfare, youth welfare, women’s welfare, assistance for individuals with physical and mental disabilities, family planning, rehabilitation of released prisoners, social education, adult education, prevention of anti-social activities, juvenile delinquency, support for beggars and the impoverished, patient welfare and rehabilitation, elderly care, training in social welfare work, and coordination of social welfare organizations. 

Registration Authority: Department of Social Services (DSS), website: http://www.dss.gov.bd/ under the Ministry of Social Welfare serves as the primary body responsible for the registration and regulation of these organizations.

Voluntary Social Welfare Agencies Registration Process:

1. Name Clearance: Prospective organizations must first obtain name clearance for their proposed name to ensure it doesn’t duplicate existing entities. This requires filing a formal request with the DSS, along with a small fee.
2. Application Submission: After securing name clearance, organizations need to complete and submit the prescribed Form-B, available at the respective district social service office. 
3. Required Documentation: The application must include:
   • Treasury Receipt: Proof of registration fee payment (usually BDT 2,000). 
   • Constitution: Five copies of the organization’s constitution in Bengali, each signed by the President or General Secretary.
   • Meeting Minutes: Attested copies of the minutes of the incorporation general meeting and approval meeting for the constitution and executive council..
   • Member Details: Lists detailing names, addresses, occupations, and signatures of both general members and executive council members, accompanied by passport-sized photographs of the President, General Secretary, and Treasurer.
   • Office Address Proof: Attested copy of the office’s land deed or a rental agreement stamped with BDT 150. 
   • Resolution book: A copy of the resolution signed by all the members about the mentioned minutes in the resolution book.
   • Bank Account Information: Details of the organization’s bank account, including a certificate from the bank manager.
   • Letter of recommendation: A letter of recommendation from the local Ward Commissioner or Union Parishad Chairman.
   • Declaration of Non-Relation: Certificate from members of the executive council that they are not from the same family (signed by the President & General Secretary).
     
4. Application Review: After submission, the DSS reviews the application and conducts necessary investigations to verify the authenticity and eligibility of the organization.
5. Approval and Registration: If the application meets all requirements, the DSS registers the organization, granting it legal recognition to operate within its specified scope.
   

Tax Exemptions and Financial Reporting

• Registered voluntary organizations engaged in charitable activities may qualify for tax exemptions under Section 44 of the Income Tax Ordinance, 1984.
• To obtain tax exemption, organization would need to apply to the NBR [the National Board of Revenue] and provide documentation proving its charitable nature.
• Under certain conditions, foreign donations granted permission from the NGO Affairs Bureau (NGOAB) may be tax exempt.

What are the requirements for Financial Reporting

• Organizations must keep proper accounts and submit annual audited statements of accounts to the Department of Social Services.
• The audit must be carried out by an independent auditor, registered with the Institute of Chartered Accountants of Bangladesh (ICAB).
• Financial reporting is required or you will be subject to fines, suspend, or deregister them. 

Legal Remedies in Case of Registration Rejection

If a voluntary organization’s registration is refused by the Department of Social Services (DSS), the organization has the following options for appeal:

Review Petition: The applicant may submit a written request to the Director General of the Department of Social Services

Appeal Petition: The applicant may appeal to the Government, the Ministry of Social Welfare.

Legal Action: If all else fails, organization can file writ petition to the High Court Division of the Supreme Court of Bangladesh under Article 102 of the Constitution.

Before applying for a license, it is wise an applicant to type the application with help of experienced people in this field so that no error will be there in the application.

Compliance & Supervision

• Registered organizations are required to adhere to their constitution of approval and submit annual activity reports.
• Authorities have the power to inspect financial records and operations at any time.
• Deregistering or taking legal action for the misuse of funds, non-reporting, or unlawful activities.

Frequently Asked Questions (FAQs):

1. Why is registration necessary for social welfare organizations in Bangladesh?
   Registration provides legal recognition. This includes legal recognition, which allows them to officially operate, acquire funding, and partner with government and other NGOs.
2. How long does it take to register?
   Generally, the Time for Registration by the DSS is 20 working days after receipt of all required documents.
3. Can a foreign national be a member of the executive council?
   The ordinance does not explicitly bar foreign nationals from being members.
4. What happens if an organization fails to register?

Under the ordinance, it is illegal for operators not to register. You will be punished if you do not register (you may have to stop working or contribute to a fine).

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