My friend who is a spiritual sufi leader as well as running an Islamic Education School, wants to establish a Foundation not for Profit under Section 42 of the Companies Ordinance, 1984 of Pakistan.
He wants to establish the Foundation to run activities like Islamic Education, Conventional Education & Trade Training, Health Services for Poor and Welfare Activities.
Can you please guide me whether Foundation is better or Trust would be good choice keeping in view especially the following :-
Foundation vs. Trust with special regard to the following:
(1) Tax treatment of Profits/ Money of the Foundation / Trust
(2) Tax treatment of DONATONS given by Public at large
(3) COMPLIANCE Requirements (Inform if Foundation has stringent compliance requirments).
(4) Preference in case If the entity Plans to register itself in US, UK, KSA etc. as a charity.
1 Answer from Attorneys
i would recommend NGO under SECP, as religious and charitable organizations are exempt from tax.
as for compliance is concerned , No need to be hesitate , that could be submitted through any secretary and manager of the organization. you are given enough facilitation by secp. you can even do all communications with secp online, with a single click you can submit your compliance...
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