Lending-2025 - Circular No. 30 on the Non-Profit Companies Law

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Reference Number: 232-11-2025 | Issue 232 | 27/11/2025 mjr.ogb.gov.ps

System No. (14) for the Year 2025 AD Amending System No. (20) for the Year 2022 AD on Non-Profit Companies

The Council of Ministers, Based on the provisions of the amended Basic Law of 2003 AD and its amendments, particularly Article (70) thereof; And on the provisions of Law No. (42) for 2021 AD regarding Companies, particularly Article (2/29) thereof; And after reviewing Law No. (39) for 2022 AD regarding the Prevention of Money Laundering and Financing of Terrorism and its amendments; And on the Non-Profit Companies System No. (20) for 2022 AD; And upon the proposal of the Minister of National Economy; And on what was approved by the Council of Ministers on 30/09/2025 AD; And on the powers delegated to us, In the interest of public welfare and achieving it, We have issued the following System:

Article (1) The Original System Reference is made to the Non-Profit Companies System No. (20) for 2022 AD, for the purpose of this amendment to the original system.

Article (2) Definitions Paragraph (1) of Article (1) of the original system is amended by adding the following definitions: State: The State of Palestine. Operating Expenses: Costs borne by non-profit companies to operate their daily activities, such as rents, water, electricity, and internet expenses, and office expenditures. Electronic Donations: Any action undertaken by a non-profit company through it or through others, whether from a natural or legal person within or outside the State, to collect funds using electronic means without consideration to carry out charitable works of public benefit. License: The approval granted to a non-profit company to collect electronic donations in accordance with the provisions of this system.

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Reference Number: 232-11-2025 | Issue 232 | 27/11/2025 mjr.ogb.gov.ps

Article (3) Technical, Financial, and Administrative Reports Article (8) of the original system is amended as follows: .1 Paragraph (3) is amended to read as follows: .3 Non-profit companies are obligated to submit periodic technical, financial, and administrative reports to the competent authority for the non-profit company every (6) months or as needed, covering the implementation stages of projects and activities for which the non-profit company has previously received funding. .2 A new paragraph numbered (7) is added, stipulating the following: .7 The Registrar may suspend the non-profit company's transactions if it fails to submit the required reports in accordance with the provisions of this article.

Article (4) Prohibitions on Shareholders Article (9) of the original system is amended as follows: .1 Clause (a) of paragraph (1) is amended to read as follows: . a. He or his relatives up to the third degree must have a direct interest with any for-profit company implementing its projects. .2 Clause (b) of paragraph (1) is deleted. .3 Clause (b) of paragraph (2) is amended to read as follows: . b. The non-profit company is prohibited from converting its legal form into a for-profit company.

Article (5) Salaries and Operating Expenses Paragraphs (2) and (4) of Article (11) of the original system are amended to read as follows: .2 The total salaries for a non-profit company shall not exceed the annual percentage specified in its budget, which shall not exceed (25%). .4 With explanatory notes, the non-profit company is obligated to provide the Registrar annually with administrative and financial reports, attached with an impact statement showing its activities and societal impact within (4) months from the end of the financial year.

Article (6) Financial Resources Paragraph (4) of Article (12) of the original system is amended to read as follows: .4 A non-profit company may own movable and immovable property to achieve its purposes and objectives.

Council of Ministers Systems

Reference Number: 232-11-2025 | Issue 232 | 27/11/2025 mjr.ogb.gov.ps

Article (7) Mechanism for Approving Funding Sources Article (13) of the original system is amended to read as follows: The procedures for granting approval to a non-profit company to obtain donations, contributions, grants, financing, and assistance are as follows: .1 The registered non-profit company submits to the Registrar a request for prior approval on donations, contributions, grants, financing, and assistance using the form approved by the Ministry. .2 The non-profit company must provide the Registrar with any documents or data requested to ensure that the expenditure of these funds aligns with the company's purposes and objectives. .3 The Registrar reviews the request considering the expenditure of donations, contributions, grants, financing, and assistance, in accordance with the nature of the company's activities, its approved internal system, and its purposes and objectives. The Registrar may consult any government body deemed suitable to verify the company's activities and data. .4 The Registrar submits the request to the Minister, accompanied by his reasoned opinion for acceptance or rejection, within a maximum period of (7) days from the date of submission. .5 The Minister grants approval to the non-profit company based on the Registrar's recommendation if its total annual funding sources do not exceed ($500,000) US dollars or its equivalent in the circulating currency. If this amount is exceeded, the Minister refers the request with his reasoned opinion to the Council of Ministers for a decision. .6 The General Secretariat of the Council of Ministers provides the Ministry of National Economy with a copy of the Council's decision immediately upon its issuance. .7 The Registrar provides the Palestinian Monetary Authority with a copy of the Council's decision regarding this matter. .8 The Palestinian Monetary Authority notifies the banks operating in the State of the Council's decision.

Article (8) Electronic Donations A new article numbered (13 bis) is added after Article (13) of the original system, stipulating: A non-profit company may obtain electronic donations from natural or legal persons after obtaining a license from the Registrar.

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Reference Number: 232-11-2025 | Issue 232 | 27/11/2025 mjr.ogb.gov.ps

Article (9) License Conditions A new article numbered (13 bis 1) is added to the original system after Article (13 bis), stipulating: The following conditions must be met for the Registrar to grant a non-profit company a license to collect electronic donations within or outside the State: .1 The non-profit company must be registered in the Companies Register at the Ministry of National Economy. .2 Verification that it does not violate the provisions of the Law and secondary legislation issued thereunder, as well as applicable prevailing legislation.

Article (10) Procedures for Obtaining the License A new article numbered (13 bis 2) is added to the original system after Article (13 bis 1), stipulating: The Registrar grants the license to a non-profit company to collect electronic donations according to the following procedures: .1 The request for a license is submitted to the Registrar using the Ministry's approved form, at least (30) days prior to the specified date for collecting electronic donations, accompanied by: . a. A certified copy of the non-profit company's board meeting minutes and the decision approving the collection of electronic donations. . b. A letter issued by the non-profit company indicating the bank account number designated for donations and the bank's details. .2 The Registrar reviews the license request and issues a reasoned acceptance or rejection decision within (14) days from its submission. .3 The Registrar studies the non-profit company's activities and financial status based on its submitted administrative and financial reports to ensure that electronic donation collection aligns with its activities and objectives. .4 The Registrar may accept or reject the license request, provided its decision is reasoned. .5 The Registrar issues a written license for collecting electronic donations upon acceptance of the request.

Article (11) Decision Issued for the License A new article numbered (13 bis 3) is added to the original system after Article (13 bis 2), stipulating: .1 The Registrar notifies the non-profit company of its decision granting the license. .2 The period for collecting electronic donations shall not exceed (6) months from the date of license issuance. .3 The non-profit company may submit a renewal request to the Registrar once for a period not exceeding (3) months, accompanied by: . a. A certified copy of the board meeting minutes requesting renewal approval. . b. A statement outlining the reasons and justifications for the renewal. . c. A bank statement showing the value, source, and beneficiaries of electronic donations. .4 The license is limited to the scope of the non-profit company's work and objectives according to its internal system.

Council of Ministers Systems

Reference Number: 232-11-2025 | Issue 232 | 27/11/2025 mjr.ogb.gov.ps

Article (12) Advertising the Collection of Electronic Donations A new article numbered (13 bis 4) is added to the original system after Article (13 bis 3), stipulating: .1 After obtaining the license, the non-profit company promotes the collection of electronic donations by creating a "Donate" icon on its website and using media channels, including: . a. Local telecommunications companies in accordance with prevailing legislation. . b. Advertising billboards. . c. Local media, bulletins, or brochures prepared for this purpose. . d. Social media platforms. .2 The advertising of electronic donation collection must be compatible with the non-profit company's objectives.

Article (13) Issuance of Donation Receipt A new article numbered (13 bis 5) is added to the original system after Article (13 bis 4), stipulating: The bank issues an electronic donation receipt to the donor containing the following data: .1 Name of the donating person, account number, and address. .2 Date and value of the donation in numbers. .3 Name of the non-profit company and the specified purpose of the donation.

Article (14) Obligations of the Non-Profit Company under the License A new article numbered (13 bis 6) is added to the original system after Article (13 bis 5), stipulating: The non-profit company is obligated under the electronic donation collection license to: .1 Record the electronic donation collection process and its proceeds in its official records and annual balance sheet, along with its dedicated bank statement for electronic donations mentioned in the license, including all data and figures, the disbursement authorization, disbursement mechanisms, and beneficiary categories. .2 Provide all data related to the electronic donation collection mechanism and its disbursement mechanisms in its required financial reports in accordance with this system.

Council of Ministers Systems

Reference Number: 232-11-2025 | Issue 232 | 27/11/2025 mjr.ogb.gov.ps

Article (15) Violation of License Conditions A new article numbered (13 bis 7) is added to the original system after Article (13 bis 6), stipulating: Upon a non-profit company's violation of the license conditions, the Registrar takes any of the following measures: .1 Notifies the company to rectify the violation within a period determined by the Registrar, not exceeding (7) days from the notification date. .2 Temporarily suspends the license if the company fails to rectify the violation within the notification period. .3 Cancels the license if the company fails to rectify the violation after the notification period.

Article (16) Exemption of the Non-Profit Company d Article (15) of the original system is amended to read as follows: A non-profit company is exempt, by a Ministerial decision based on the Registrar's recommendation, from obtaining prior approval once annually regarding fixed monthly periodic operating expenses. If any modification occurs in their value, the non-profit company must submit a new request to obtain approval.

Article (17) Repeal: All provisions conflicting with this system are repealed.

Article (18) Effectiveness and Implementation All competent authorities are responsible for implementing the provisions of this system, each within its respective scope. It shall come into force thirty days after its publication in the Official Gazette.

Issued in Ramallah on: 30/09/2025 AD Corresponding to: 1447/08/Rabi' al-Thani AH dr. Mohammad Mustafa Prime Minister Council of Ministers Systems