How to Register a Trust in Pakistan?

You will find here the most up-to-date information about registration of Trust in Pakistan

FIRST ASK YOURSELF!

Before we discuss how to register a Trust in Pakistan? The first question you need to ask yourself, why do you want to create a Trust?

Do you need to register a Trust for the benefit of specified group of persons/beneficiaries? You can call it Beneficial Trust or Private Trust
Do you need to incorporate a Trust for the benefit of public at large or for social welfare purpose? You can call it Welfare Trust or Public Trust
Do you need to register a Specialized Trust?

The second question you need to ask yourself before registration of a Trust in Pakistan, is there any movable or immovable property which you want to transfer to the Trust?

The third question, who will manage the Trust’s Property or Trust? You, the author, will be the Trustee yourself or do you want to assign this responsivity to someone else?

THINGS TO CONSIDER BEFORE REGISTERING A TRUST IN PAKISTAN

From above we concluded that for the registration of Trust in Pakistan you need to answer following questions:-

What is the purpose of creation of Trust?
Who will be the author/settler/creator of Trust?
Who will be the Trustee(s)?
Who will be the beneficiary or beneficiaries?
What will be the Trust Property?
In which province of Pakistan your registered office is going to be?

WHAT IS CHANGED?

Before the enactment of Provincial Trust Acts in 2020, the Trusts in Pakistan used to be registered under the Trust Act 1882 through a very simple and straight forward process.

However, now with the introduction of Trust Act 2020 in each of the four provinces in Pakistan, registration of Trust is not as simple as it used to be.

This is because of the FATF’s recommendation for Pakistan to strengthen Anti-Money Laundering and Anti-terrorism Financing laws to counter abuse of NPOs/NGOs/Trust for money laundering and terrorism financing.

APPLICABLE LAWS!

Now the laws applicable for Trust registration in Pakistan are different in each province, however, some similarity is also there. These laws are:

Punjab Trust Acts 2020,
KPK Trust Act 2020,
Islamabad (ICT) Trust Act 2020 &
Baluchistan Trust Act 2020
Sindh Trust Act 2020

MIK Consulting have the most up-to-date study of the latest Trust laws in Pakistan. Contact us today to help you create your very own Trust. 0092 311 8500214