Starting a Non-Governmental Organization (NGO) in Sri Lanka is a meaningful way to contribute to society and address pressing social, environmental, or economic issues. However, setting up an NGO requires compliance with specific legal requirements and procedures. Here’s a comprehensive guide to help you navigate the process.
Step 1: Define Your Objectives and Scope
Before starting the registration process, clearly outline the purpose, mission, and scope of your NGO. Identify the areas you plan to work in, such as education, healthcare, environment, or social development. A clear vision will help you during registration and attract potential supporters and donors.
Step 2: Choose a Suitable Name
Select a unique name for your NGO that reflects its mission and is not already in use by another organization. Ensure the name complies with local naming regulations and is not misleading or offensive.
Step 3: Draft a Constitution
Prepare a detailed constitution for your NGO. This document should include:
- The NGO’s objectives.
- Membership criteria and roles.
- Governance structure (e.g., board of directors or trustees).
- Procedures for meetings and decision-making.
- Financial management and reporting processes.
The constitution serves as the foundation for your NGO’s operations and legal compliance.
Step 4: Register with the Registrar of Companies
In Sri Lanka, NGOs must register as companies limited by guarantee under the Companies Act No. 7 of 2007. Submit the following documents to the Registrar of Companies:
- Application form with the NGO’s name and objectives.
- Constitution and Articles of Association.
- Details of board members and their consent letters.
- Proof of address for the NGO’s headquarters.
Pay the necessary registration fees to complete this step.
Step 5: Obtain Approval from Relevant Authorities
Depending on your NGO’s focus area, you may need additional approvals:
- For education-related NGOs, obtain approval from the Ministry of Education.
- For health-related projects, secure clearance from the Ministry of Health.
Additionally, NGOs involved in foreign-funded projects must register with the National Secretariat for Non-Governmental Organizations under the Ministry of Public Security.
Step 6: Open a Bank Account
Open a bank account in the NGO’s name to manage funds transparently. Most banks require your registration certificate, constitution, and board member details to open the account.
Step 7: Ensure Financial Transparency and Reporting
NGOs in Sri Lanka are required to maintain proper financial records and submit annual reports to the Registrar of Companies. If your NGO receives foreign funding, comply with regulations under the Foreign Exchange Act and report to the relevant authorities.
Step 8: Register for Tax Exemptions
Apply for tax exemptions with the Department of Inland Revenue to reduce operational costs. Ensure your NGO meets the criteria outlined under Sri Lankan tax laws.
Conclusion
Setting up an NGO in Sri Lanka involves careful planning and adherence to legal procedures. By meeting these requirements, you can establish a credible organization that positively impacts society. Ensure continuous compliance with regulations to maintain your NGO’s good standing and effectiveness in achieving its mission.
