Navigating the regulatory framework for not-for-profit organizations (NPOs) in Pakistan is essential to ensure compliance and transparency. Here is a summary of the relevant rules and regulations that the Habib University Foundation follows:
1. Registration and Formation:
Companies Act, 2017:
The Foundation is registered as a non-profit company under this act.
2.Income Tax Exemptions:
The Foundation qualifies for tax exemptions under certain conditions. To benefit from tax exemptions, the Foundation maintains proper records and provides evidence of its activities.
Habib University Foundation is supported by many Non-resident Pakistanis. NPOs receiving foreign contributions must register with the government. The Foundation is registered with the Economic Affairs Division and reports details of foreign funding sources and the utilization of these funds.
4.Financial Reporting and Auditing:
Companies Act, 2017:
The Foundation, as a non-profit company is required to prepare and submit annual financial statements which are available on its website. The Company has the top Pakistani audit firm, PricewaterhouseCoopers Pakistan, as its external auditor.
Income Tax Ordinance, 2001:
The Foundation maintains proper accounting records as required under the Ordinance.
5.Governance and Compliance:
The Foundation ensures compliance with the provisions of our founding documents, including articles and memorandum of association
The foundation maintains transparency in our governance practices, including the formation of independent Board committees, documenting various policies including Anti Money Laundering (AML), and following best practices in corporate governance.
6.Banking and Financial Transactions:
The Foundation follows anti-money laundering (AML) and counter-terrorism financing (CTF) regulations and maintains proper records of financial transactions.
7.Reporting and Documentation:
The Foundation submits annual reports, audited financial statements, and other relevant documents to relevant regulatory authorities.