The legal and regulatory environment for Non-Governmental Organizations (NGOs) in Bangladesh is multifaceted, involving several laws, regulatory bodies, and procedures. Here’s a breakdown of the key aspects:

NGO laws Primary Regulatory Authorities:

• NGO Affairs Bureau (NGOAB): This is the primary body under the Prime Minister’s Office responsible for registering and regulating all NGOs and International Non-Governmental Organizations (INGOs) that receive foreign funds. The Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA), and its predecessors empower the NGOAB under NGO laws.

• Department of Social Services (DSS): Under the Ministry of Social Welfare, the DSS registers NGOs and charities involved in providing welfare services to specific groups like children, youth, women, and people with disabilities. The Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961, governs this, and it falls under the umbrella of NGO laws.

• Registrar of Joint Stock Companies and Firms (RJSC): NGOs can also register as societies under the Societies Registration Act, 1860, or as non-profit companies under the Companies Act, 1994, both overseen by the RJSC under the Ministry of Commerce, in accordance with NGO law.

• Department of Women and Children Affairs (DWCA): This department, under the Ministry of Women and Children Affairs, registers organizations working for the welfare of women and children, which is governed by specific NGO laws.

• Government NGO Consultative Council (GNCC): Established to foster dialogue and cooperation between the government and NGOs, this body operates in line with NGO laws.

Key Legislation:
• Foreign Donations (Voluntary Activities) Regulation Act, 2016 (FDRA): This is the main law governing NGOs receiving foreign donations. It mandates registration with the NGOAB, project approval, fund management through designated bank accounts, and regular reporting, all governed by NGO laws.

• Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961: This ordinance requires organizations providing specific welfare services to register with the Department of Social Services and adheres to NGO laws.

• Societies Registration Act, 1860: Allows for the registration of societies formed for literary, scientific, charitable, or other similar purposes, under the purview of NGO laws.

• Trust Act, 1882: Governs the creation and registration of trusts for various purposes, including charitable activities, under NGO laws.

• Companies Act, 1994: Provides for the incorporation of non-profit companies in line with NGO laws.

Formation/Establishment NGO laws NGOs in Bangladesh may be formed or established under the following pieces of legislation:

1. Societies Registration Act of 1860
   i. Registrar of Joint Stock Companies, Ministry of Commerce
   ii. For any “literary, science, or charitable purpose,” including literature, fine arts, education, libraries, museums, etc., governed by NGO law.
2. Environment, human rights, and historic preservation qualify only under a modern, progressive concept of “charitable” under NGO law.
3. No provision made for social or sporting clubs, self-help groups, contemplative societies, etc., as per NGO laws.
   iii. A society is not a true legal person; it must sue or be sued in the name of officers, but judgments lie only against the property of society, as dictated by NGO laws.
   iv. 7 or more individuals or legal persons are required under NGO law.
   v. Most NGOs are formed under this Act.
4. Trusts Act of 1882
   a. Trust can be “for any lawful purpose,” private or public, as per NGO law.
   b. Can be created by any person competent to form a contract under NGO law.
   c. No government registration is required, but governed by NGO law.
   d. Trustee is the legal owner of property under NGO laws.
   e. Trust is not a legal person under NGO laws.
   f. Trustee must deal with the trust property “as carefully as a man of ordinary prudence would if it were his own,” and is personally liable for breach of trust under NGO laws.
   g. Some NGOs are formed as trusts (e.g., PRIP Trust) under NGO law.
   h. No special provisions for charitable trusts under NGO law.
5. Companies Act of 1994
   a. Permits joint stock companies, companies limited by guarantee, nonprofit companies (sections 26 & 27), and unlimited companies under NGO laws.
   b. Nonprofit company must be “formed for promoting commerce, art, science, religion, charity, or any other useful object” under NGO laws.
   c. 7 or more persons, or 2 or more if a private company, as per NGO law.
   d. Registrar of Joint Stock Companies, Ministry of Companies.
   e. Full legal personality plus limited liability under NGO law.
   f. Increasingly popular for NGOs and other not-for-profits, as encouraged by NGO laws.
6. Other laws
   a. Waqf Ordinance of 1962, governed by NGO law.
   b. Hindu Religious Welfare Trust Ordinance of 1983, governed by NGO law.
   c. Christian Religious Welfare Trust Ordinance of 1983, governed by NGO law.
   d. Buddhist Religious Welfare Trust Ordinance of 1983, governed by NGO law.

Navigating the legal and regulatory environment for NGOs in Bangladesh requires a clear understanding of the applicable NGO laws, regulatory authorities, and compliance procedures. Whether an organization is registered under the Societies Registration Act, Trusts Act, or the Companies Act, it must align its operations with the relevant legal framework.

With various laws like the Foreign Donations Regulation Act and oversight by bodies such as the NGO Affairs Bureau, Department of Social Services, and Registrar of Joint Stock Companies, the sector is highly regulated to ensure transparency and accountability. Understanding and adhering to NGO laws is crucial not only for legal compliance but also for building trust with donors, beneficiaries, and the government. As the role of NGOs continues to expand in social development, a strong grasp of NGO laws will remain fundamental to their success and sustainability in Bangladesh.

Understanding NGO Laws in Bangladesh: Registration, Compliance, and Penalties

Bangladesh has a well-defined but complex legal framework for the operation, registration, and regulation of non-governmental organizations (NGOs). The core NGO laws govern how both local and foreign-funded NGOs must operate to ensure legal compliance and accountability. This article offers an in-depth overview of the key registration requirements, governing authorities, compliance duties, and penalties under the existing NGO laws of Bangladesh.

Legal Frameworks for NGO Registration

NGOs in Bangladesh may need to register under one or more of the following NGO laws, depending on the nature of their activities and funding sources:

1. The Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (SWO)

• Mandatory registration for organizations working in social welfare sectors such as child care, family planning, rehabilitation, and social development.
• Exclusions: Activities focused on art, science, or culture are not eligible for registration under this ordinance.
• Regulatory Authority: Department of Social Welfare under the Ministry of Social Welfare.
• The department holds extensive powers, including the right to suspend or dissolve an NGO with limited avenues for judicial recourse.
• Most domestic NGOs are registered under this ordinance.

2. Foreign Donations (Voluntary Activities) Regulation Ordinance, 1977 & FCR 1982 (FDR & FCR)

• Applicable to organizations engaged in voluntary activities using foreign donations.
• NGOs must register with the NGO Affairs Bureau (NGOAB) and obtain approval for each foreign-funded project.
• NGOAB oversees project approval, foreign consultant hiring, monitoring, and fund disbursement.
• NGOs under this regime must also comply with additional reporting, auditing, and operational restrictions.

NGO Registration Process in Bangladesh

The registration process under NGO laws includes several key steps:

1. Name Clearance from the relevant authority.
2. Document Submission: Includes constitutional documents, executive member lists, funding plans, operational outlines, and office proof.
3. Fee Payment: NGOAB charges BDT 50,000 for local and USD 9,000 for foreign NGOs.
4. Security Clearance: Vetted by national security agencies like NSI and SB.
5. Review & Inspection by the registering authority.
6. Issuance of Certificate: NGOAB certificates are valid for 10 years and renewable.

Compliance and Reporting Obligations

Registered NGOs are bound by NGO laws to follow strict compliance protocols:

• Annual Reports and Audited Financial Statements must be submitted.
• Project-specific Approvals are needed from NGOAB for foreign-funded projects.
• Fund Restrictions: Foreign donations must be channeled through a single designated bank account.
• Monitoring: Authorities may inspect records and operations at any time.
• Expense Limits: Administrative costs are capped (usually at 20%).

Internal Governance Standards

Different NGO laws offer varying levels of governance and accountability:

• Societies Act: Requires annual meetings but lacks audit mandates.
• Trust Act: Mandates record-keeping but is vague on charity trust rules.
• Nonprofit Companies: Require full compliance with corporate governance standards, including fiduciary duties.
• Waqfs: Managed by an Administrator; require annual audits.

Role and Authority of NGOAB

Established in 1990 under the Prime Minister’s Office, the NGOAB functions as a centralized regulator under the NGO laws. It performs the following roles:

• NGO registration and project approval
• Monitoring and evaluating NGO operations
• Approving foreign personnel
• Ensuring compliance with financial reporting and travel declarations
• Authorizing fund releases only after project scrutiny

NGOAB also collaborates with the Ministry of Home Affairs and other line ministries during registration and project approval processes.

Penalties and Legal Consequences

Non-compliance with NGO laws can result in a range of penalties:

• Societies Act: No specific penalty provisions.
• Nonprofit Companies: May be wound up or lose privileges if non-compliant.
• Trusts: Court action can be taken to remove errant trustees.
• Waqfs: Administrative oversight, but no dissolution.
• SWOs: Can face suspension or dissolution by the Director of Social Welfare. No judicial appeal right exists.
• FDR/FCR:
  • NGOAB may inspect or seize documents.
  • Registration can be cancelled for false statements or non-compliance.
  • Violations can lead to fines double the donation amount or up to three years’ imprisonment.

Conclusion

The NGO laws in Bangladesh aim to foster transparency, accountability, and proper utilization of both local and foreign resources in the non-profit sector. Whether an organization is community-based, nationally operational, or internationally funded, a strong understanding of the applicable legal regimes is essential to maintain legitimacy and operational efficiency.