Not for profit Associations in Bangladesh

Section 28 of the CA 1994 makes provision for associations that are not for profit. It provides that where it is proved to the satisfaction of the Government that an association capable of being formed as a limited company has been or is about to be formed for promoting commerce, art, science, religion, charity, or any other useful object, and applies or intends to apply its profits, if any or other income in promoting its objects and to prohibit the payment of any dividends to its members, the Government may, by license with approval of one of its Secretaries, direct that the association be registered as a company with limited liability, without the addition of the word “Limited” to its name, and the association may be registered accordingly.

A license by the Government hereunder may be granted on such conditions and subject to such restrictions as the Government thinks fit and those conditions and restrictions shall be binding on the association and shall if the Government so directs be inserted in the memorandum and articles or in one of those documents.

The association shall on registration enjoy all the privileges of limited companies and be subject to all their obligations except those of using the word “Limited” as any part of its name and of publishing its name or of sending lists of members to the RJSC.