can a forignen company do business activities with a welfare organization in Kp pakistan?

There is no legal bar on a Section 42 company exporting goods or services, including handmade crafts and artwork, to a foreign entity. However, the company must ensure compliance with:

State Bank of Pakistan (SBP) regulations on receipt of foreign remittances,

Trade Development Authority of Pakistan (TDAP) registration for exporters,

Federal Board of Revenue (FBR) registration for tax and customs purposes, and

Maintenance of proper audited accounts showing that income from exports is utilized solely for welfare objectives.

Where the Memorandum of Association (MoA) does not specifically authorize trade, sale, or export of welfare products, the company may obtain SECP approval for amendment of its object clause under Section 32 of the Companies Act, 2017.

Best Legal Route

To stay compliant while engaging in export activity:

1. Keep welfare status intact (under Section 42 or Society Act).

2. Create a separate business arm or social enterprise (e.g., a private company limited by shares) owned by the welfare organization, to handle commercial transactions and exports.

The profits from that company can then be donated back to the welfare arm.

This structure is legally cleaner and safer for both SECP and tax compliance.

Attn: Ask a Question person. it is necessary for information, Here in Pakistan two steps of registration of welfare centers & help the need or orphan or poor person after legal completion of registration process. 1st Step i. Registration through Societies Registration Act 1860. Total requirements a. Apply for registration with all Documents b. NOC Clerance from Home Department c. NOC Clearance from Counter Terrorisum Department. d. NOC Clearance from Special Branch Police Department. e. Certificate issued from District Office (NGO) ii. Registration of Non-Profit Organization (NPO) under section 42 of SECP 2nd Step. Federal Board of Revenue registration for exporters and charitable organizations with benefits of Tax Credits under section 100C of the Income Tax Ordinance 2001.

Generally, there is no restriction on trading activities by a non-profit company. However, certain compliance requirements would apply, such as: Sales Tax Registration, POW registration, Customs formalities, and State Bank of Pakistan's forex regulations.