Section 2: Definitions.⸻In this Act, unless there is anything repugnant in the subject or context,

Plain-Language Summary

A general explanation to aid understanding. The official statutory text appears below.

This section defines the following terms used in The Trade Organizations Act, 2013: • Administrator — an Administrator appointed under this Act; • district — an administrative district notified by the Provincial Governments from time to time; • division — an administrative division notified by the Provincial Government from time to time; • Executive Committee — the Board of Directors, the Managing Committee or any other body, by whatever name called, of a registered trade organisation responsible for the management or conduct of the affairs of such trade organisation; • existing trade organisation — an organisation licensed under the Trade Organisations Ordinance, 1961(XLV of 1961); • licence — a licence granted to a trade organisation under section 3; • member of a trade organisation — a firm and includes a proprietorship, an association of persons, a partnership, a company or a multinational corporation, engaged in trade, industry or services and enrolled as a member of a trade organisation licensed under this Act; • memorandum — the memorandum and the articles of association of a trade organisation; • office bearers — President, Senior Vice President, Vice-President, Chairman, Senior Vice­Chairman and Vice Chairman of a trade organization; • Ordinance — the Companies Ordinance, 1984 (XLVII of 1984); • prescribed — prescribed by rules made under this Act; • register — the Register of Companies required to be kept under section 147 of the Ordinance; • registered trade organisation — a trade organisation registered under the Ordinance; 1[ • Regulator — the Director General or any other officer not below basic pay scale 20 appointed by the division concerned to perform functions under this Act;] • repealed ordinance — the Trade Organizations Ordinance 1961 (XLV of 1961); • trade organisation — an organization, which— (i) is capable of being formed as a limited company within meaning of the Ordinance; (ii) is formed or intended to be formed with the object of promoting any trade, industry or service or any combination thereof; (iii) prohibits payment of any profits to its members; and (iv) applies its income and profits for achieving its objects; • small traders and small business — a member of trade organization 1Subs. by Act No. IV of 2025, s.2. whose number of employees is less than twenty, annual business turnover ranges between two million rupees to twenty million rupees, all utility bills do not exceed one million rupees per annum and neither such small trader or small business is owned or controlled by a Provincial Government nor it carries on trade or business confined to only one Province; and • small industry — a member of trade organization which is a manufacturing concern having an industry less than twenty employees, whose annual turnover ranges between two million rupees to twenty million rupees, utility bills do not exceed one million rupees per annum and is neither owned or controlled by a Provincial Government nor carries on trade or business confined to only one Province This is the official statutory text, shown as written — it is not a paraphrase or a legal opinion. Consult a verified lawyer to see how it applies to your specific situation.

2. Definitions.⸻In this Act, unless there is anything repugnant in the subject or context,— (a) “Administrator” means an Administrator appointed under this Act; (b) “articles” mean the articles of association of a trade organisation; (c) “district” means an administrative district notified by the Provincial Governments from time to time; (d) “division” means an administrative division notified by the Provincial Government from time to time; (e) “Executive Committee” means the Board of Directors, the Managing Committee or any other body, by whatever name called, of a registered trade organisation responsible for the management or conduct of the affairs of such trade organisation; (f) “existing trade organisation” means an organisation licensed under the Trade Organisations Ordinance, 1961(XLV of 1961); (g) “licence” means a licence granted to a trade organisation under section 3; (h) “member of the Executive Committee” includes a Director where the Executive Committee is a Board of Directors and the Chairman, Senior Vice Chairman, Vice Chairman, President, Senior Vice-President and Vice President of a trade organisation licensed under this Act; (i) “member of a trade organisation” means a firm and includes a proprietorship, an association of persons, a partnership, a company or a multinational corporation, engaged in trade, industry or services and enrolled as a member of a trade organisation licensed under this Act; (j) “memorandum” means the memorandum and the articles of association of a trade organisation; (k) “office bearers” means President, Senior Vice President, Vice-President, Chairman, Senior Vice­Chairman and Vice Chairman of a trade organization; (l) “Ordinance” means the Companies Ordinance, 1984 (XLVII of 1984); (m) “prescribed” means prescribed by rules made under this Act; (n) “register” means the Register of Companies required to be kept under section 147 of the Ordinance;. (o) “registered trade organisation” means a trade organisation registered under the Ordinance; 1[(p) “Regulator” means the Director General or any other officer not below basic pay scale 20 appointed by the division concerned to perform functions under this Act;] (q) “repealed ordinance” means the Trade Organizations Ordinance 1961 (XLV of 1961); (r) “trade organisation” means an organization, which— (i) is capable of being formed as a limited company within meaning of the Ordinance; (ii) is formed or intended to be formed with the object of promoting any trade, industry or service or any combination thereof; (iii) prohibits payment of any profits to its members; and (iv) applies its income and profits for achieving its objects; (s) “small traders and small business” means a member of trade organization 1Subs. by Act No. IV of 2025, s.2. whose number of employees is less than twenty, annual business turnover ranges between two million rupees to twenty million rupees, all utility bills do not exceed one million rupees per annum and neither such small trader or small business is owned or controlled by a Provincial Government nor it carries on trade or business confined to only one Province; and (t) “small industry” means a member of trade organization which is a manufacturing concern having an industry less than twenty employees, whose annual turnover ranges between two million rupees to twenty million rupees, utility bills do not exceed one million rupees per annum and is neither owned or controlled by a Provincial Government nor carries on trade or business confined to only one Province.

Effective date: 2013-01-01

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