To: Ministry of the Interior, Ministry of Intelligence, Ministry of Foreign Affairs, Central Bank of Islamic Republic of Iran

By virtue of Article 138 of the Constitution, the Council of Ministers approved the Administrative Regulations on Establishment and Operation of Non-Government Organizations (NGOs) at a session held on 19 June 2005 pursuant to a proposal made by the Ministry of Intelligence on 29 July 2004, as follows:

The Administrative Regulations on Establishment and Activities of Non-Government Organizations (NGOs)

Chapter One- Generalities

Article 1- The following words and phrases shall be used, in the present regulations, instead of the related concepts:

a. Non-Government Organization, (hereinafter called "NGO"), means the entities that will be voluntarily established by natural persons and legal entities in compliance with the pertinent regulations to pursue non¬profit and non-political objectives;

Note 1- The word "NGO" may be replaced by "society", "association", "institute", "center", "group", "assembly", "house", "institution" and the like.

Note 2- "Non-Government" means that Government bodies shall not interfere in establishment and management of the NGO. The Government authorities' and employees' participation in establishment and management of a NGO shall be authorized; unless, the aforesaid take advantage of their Governmental title and position.

Note 3- Political objectives comprise activities that are not subject to Article One of the Political Parties Act.

Note 4- Non-profit objectives do not consist of profit making, trade and guild activities for distributing the profit among members, founders, managers and employees of the NGO.

Note 5- "Voluntarily" means the establishment and management of the NGO as well as participation in the same, based on the principle of freedom of will.

b. Board of founders means the panel of individuals who shall be in charge of establishment of the NGO.

c. Operation permit is a document to be issued in compliance with the pertinent criteria by the authorities mentioned in these regulations for establishing a NGO.

d . Supervisory authorities consist of the township supervisory authorities (including the Governor, the representative of the township's Islamic council and the representative of the township NGOs); the province supervisory authorities (including the Provincial Governor, the representative of the provincial Islamic council and the representative of the NGOs) as well as national supervisory authorities (including the concerned deputy of the Minister of the Interior, the representative of the High Council of Provinces and the representative of the NGOs). Such authorities supervise the NGOs at township, province and national level based on the present regulations and in compliance with the pertinent criteria with the exception of the organizations to be supervised by a special supervisory authority according to law. The national supervisory board will supervise the trans-provincial NGOs as well as the national and the international NGOs.

Article 2- The NGO shall be incorporated upon the receipt of the operation permit as well as the registration of the NGO as per the criteria of these regulations and the standing regulations.

Article 3- The objects of the NGO shall be scientific, cultural, social, sports, artistic, beneficence and charities, humanitarian, women's affairs, social victims, protective, health and medical treatment, the environment, development and the like or a collection of them.

Chapter Two: Rights and Duties

Article 4- The NOO shall be entitled to take action in proportion to its objectives in compliance with these regulations and other pertinent laws and regulations. The aforesaid shall take the following measures:

a. offering the necessary relief services for the governmental and the non-governmental bodies,

b. suggesting and proposing proper solutions on:
1. planning process of the governmental and the non-governmental authorities at township, province or national level as the case may be; and
2. the effects and results of the plans and projects of the governmental and non-governmental bodies, as well as the existing defects and problems to be communicated to the legal authorities and bodies concerned.

c. Assisting the implementation of plans and projects of the governmental and the non-governmental bodies through mutual agreements,

d. holding demonstrations and rallies the order to materialize the objectives of the NGO,

e. Publishing journals,

f. Implementation of any other activities in order to realize the objectives fixed by the Articles of Association of the NGO,

g. The right of litigation at judicial and quasi-judicial courts.

Article 5- The NGO shall submit its annual financial and executive performance reports to the concerned supervisory authority no later than 2 months after the end of each fiscal year. The aforesaid shall also submit other reports on the financial and executive performance at the request of the same authority during the year, as the case may be. The NOO shall publish a summary of the said annual report within its geographical area of activities to inform the public.

Article 6- The costs of the NGO shall be financed out of the following sources:

a. Gifts, donations and grants by the domestic and the international natural persons and legal entities as well as the governmental and the non-governmental sources;

b. Endowment and entailment;

c. The income acquired from the activities done within the framework of the NGO of activities, the objectives and the Articles of Association as well as these regulations,

d. The fee of membership in the NGO.

Note 1- The NGO shall notify the characteristics of the foreign sources offering contribution and the amount of such contributions to the concerned supervisory authorities before accepting such aids from foreign sources. Supervisory authorities shall ask the opinion of the Ministries of Intelligence and Foreign Affairs as well as the Central Bank of Islamic Republic of Iran (CBIRI) within one week after receipt of such notification.

The said Ministries and the CBIRI shall express their viewpoints within a maximum period of one month after receipt of inquiry. The consent of the aforesaid is essential. Failure to express any opinion by the said bodies during the above respite, shall be regarded as their consent.

Note 2- No permit is required for receipt of aids from official international and regional associations and the agencies affiliated to the United Nations (UN). The list of such organizations shall be prepared by the Ministry of Foreign Affairs and put at the disposal of the supervisory board.

Article 7- It shall be prohibited to distribute, in advance or after the dissolution; the assets, profits and/or revenues of the NGO among its founders, members, directors and/or employees.

Article 8- The Articles of Association and activities of the NGOs may not be contrary to the articles of the Constitution.
Article 9- NGOs shall put their documents and information at the disposal of the inspectors of the supervisory authorities. Such inspectors shall solely examine the said documents and information in the presence of the NGO's representative at the location of the NGO's office. The method of conducting such examination shall not harm the performance of duties of the NGO. It shall be prohibited to send out the documents of the NGO for inspection unless a competent judicial authority orders to do so.

Article 10- The NGOs shall obtain a general permit from the trans ¬provincial and the national supervisory authority•. to operate in other countries.

Note 1- The said authority shall ask the opinion of the concerned Governmental bodies such as the Ministry of Foreign Affairs before notifying the results to the relevant NGO.

Note 2- Such authority shall respond to the applicant NGO within a maximum period of 45 days after the date of request.

Note 3- The requests of the NGOs operating in a township and/or a province shall be firstly submitted to the supervisory authority of the township or province, as the case may be.

Note 4- The NGOs shall notify the supervisory authorities before attending international associations, training courses and exhibitions.

Article 11- The NGO shall abide by the laws and regulations as well as the behavioral patterns of civil institutions in its conduct. The aforesaid shall also refrain from committing any offences.

Article 12- The NGOs shall have the right of access to the information available at public institutions. Such institutions shall put their unclassified information at the disposal of the NGOs.

Article 13- Governmental as well as public institutions and organizations shall ask the opinion of the NGOs in the process of making decisions. The aforesaid shall also invite the NGOs to attend the meetings if appropriate and shall submit a report of the viewpoints expressed by the NGO's to their organizations.

Article 14- The Government shall identify such duties, affairs and activities of the executive bodies which may be transferred to NGO's and shall also take action to transfer them. NGO's are also entitled to submit their proposals in this regard to the Government.

Article 15- Governmental organizations shall prepare the ground for participation of NGOs in supervising good performance of public affairs and shall also co-operate with the fact-finding commissions of the NGOs.

Article 16- As far as the activities of NGOs are concerned and in order to defend the interests of the public, the NGOs are entitled to file a suit against natural persons and legal entities.

Chapter Three: Issuance of the Operation permit

Article 17- All the applicants for establishment of the organization shall submit their application for the receipt of the operation permit to the supervisory authorities mentioned in paragraph d of Article I with the exception of cases where a special authority has been appointed according to law.

Note 1- The Secretariats for the national, the province and the township supervisory boards shall be established in the Ministry of the Interior, the Provincial Governor's office and the Governor's office respectively.

Note 2- The responsibility of the Secretariats for the national, the province and the township supervisory boards shall be shouldered by the Ministry of the Interior, the Provincial Governor's office and the Governor's office respectively.

Note 3- The Secretariat for the supervisory board shall conduct the administrative formalities and take the measures referred to in these regulations.

Note 4- The supervisory board shall make the necessary decisions in respect of whether the operation permit shall be issued or not as well as granting permission.

Note 5- Upon confirmation of the supervisory board; the Minister of the Interior, the Provincial Governor and the Governor shall issue the permit and sign the related documents on behalf of the national, the province and the township supervisory boards respectively.

Article 18- The board of founders shall have the following qualifications:

a. A minimum of 18 years of age.

b. Iranian nationality.

c. At least two of the founders shall have an expertise in the field of activities of the NGO concerned.

d. The founders may not be members of such groups that have been recognized as hostile and belligerent, based on the ruling of a competent court. Also, they shall not be divested from their civil rights by a penal conviction.

Note- The board of founders shall have at least five (5) members.

Article 19- The NGOs that share common objects, activities and objectives may form a network or become a member of international networks in case of enjoying the following conditions:

a. A minimum of 2 years has lapsed since the date of their formation.

b. They shall not be guilty of the convictions mentioned in paragraphs (c) and (d) of Article 28 of these regulations.

c. They should have carried out the duties stipulated in Article 5;

d. They shall be of an Iranian nationality;

e. The founders shall be at least five (5) Iranian NGOs.

Note 1- The establishment of the NGOs' network does not require the inquiries mentioned in Notes 2 and 3 of Article 22 of these regulations.

Note 2- The peffilit for the operation of the NGOs' network shall be subject to the provisions of these regulations and issued by the national supervisory board. The rights, duties and other provisions of such networks are the same as those envisaged for the NGOs.

Article 20- The board of founders shall submit the following documents to the authorities referred to in Article 17 of these regulations:

a. The application fOffil;

b. A copy of identification card of the members of board of founders;

c. Articles of Association of the NGO;

d. The minutes of the first meeting of the board of founders.

Article 21- The articles of Association of NGO shall contain the following:

a. Objectives of the NGO;

b. Object of activities;

c. Duration;

d. Place of activities;

e. Manner of establishment of branches;

f. The organs, organizational structure and manner of appointment, job description, Scope of powers and responsibilities of such organs;

g. The authorized signatories;

h. Membership qualifications;

i. Financial resources and assets;

J. Manner of changing and revising the Articles of Association;

k. Manner of dissolution;

l. The fate of assets upon dissolution; m. The geographical area of activities

Note 1- The Articles of Association shall stipulate a tree voting process for the appointment of directors, the manner of altering the aforesaid, their term of office and the manner of adopting essential resolutions for any kind of change and prospects.

Note 2- The Articles of Association shall explicitly identify the manner of presenting the financial and the executive performance reports of the NGO to its members as well as the manner of inspection and auditing of the NGO.

Note 3- The geographical area of the NGO's activities shall be specified at the recommendation of the board of founders and on the basis of the state division indices.

Article 22- Upon receipt of an application, the authority in charge of issuing the operation permit - referred to in Article 17 of these regulations shall notify its acceptance or rejection within a maximum period of two weeks.

Note 1- In case of rejection of the application by the supervisory board, such board shall notify the causes of the rejection to the applicant.

Note 2- Provided the object of the NGO's activities is related to the duties of each of the Governmental bodies, the acceptance of the concerned Governmental body(s) shall also be taken, as the case may be.

Note 3- The supervisory board shall ask the opinion of the concerned authority (Ministry of Intelligence, Ministry of the Interior, the Disciplinary Force of the Islamic Republic of Iran and the specialized bodies) within one week after receipt of the application. Such authority shall notify the board within one month, unless its reticence shall imply assent.

Note 4- To object the rejection, the applicant may take the following measures:

a. Communicate his objection to the province supervisory board within one month after the date of communication of the resolution of the township supervisory board and to object to the national supervisory board within one month in case of the rejection of the objection by the province supervisory board.

b. Object to the national supervisory board within one month after the date of communication of the resolution of the province supervisory board.

c. The resolution of the national supervisory board shall be binding in every case. However, such resolution may be objected to, at Administrative Court of Justice.

Article 23- The General Meeting and the Board of Trustees (as the case may be) shall be the highest executive authorities of a NGO. They shall also possess the qualifications mentioned in Article 18 of these regulations.

Article 24- NGO shall have Iranian nationality.

Article 25- NGO shall inform the authority in charge of issuing the permit, of any amendments made in the provisions of the Articles of Association, any change in the board of directors and the board of trustees as well as its address. In case of notification of the agreement of changes by the said authority, the NGO shall take action to register the changes with the Registration Office for Companies and non-Commercial Institutes as well as to publish such changes in the Official Gazette according to the regulations of Registry.

Chapter Four: Supervision

Article 26- The township and the province supervisory boards shall have the following duties in respect of the NGOs within their jurisdiction:

a. Receive and review the Articles of Association of applicants for establishment as well as issuance of the operation permit upon achieving the qualifications and the criteria laid down ill these regulations,
b. Receive the financial and the executive performance reports annually and from time to time, in case of need,
c. Examine the financial and the executive performance of the NGO as occasion will arises,

d. Supervise the execution of the provisions of these regulations.

Article 27- The duties of the trans-provincial and the national supervisory boards vis-a-vis the NGOs are as follows:

a. Receipt and examination of the Articles of Association of those applying for establishment of NGOs with a trans-provincial and national area of activity as well as issuance of the operation permit upon establishing the achievement of the qualifications and the criteria laid down in these regulations,

b. Receipt of the financial and the executive performance reports annually and from time to time in case of need,

c. Investigation of the applicants' complaints regarding delay in issuing the operation permit or refusing to do so as well as other complaints and disputes between the NGOs and the Provincial Governor's Office as well as the Governor General's Office. The supervisory boards in charge shall then express their points of view and make a decision,

d. Supervision over the good performance of the provisions of these regulations.

Note- The concerned bodies shall supervise the specialized NGOs in co¬ordination with the Ministry of the Interior.

Article 28- The supervisory authorities shall examine the reports and compliance with the provisions of these regulations by NGO's in the presence of the representative of the related NGO and the representative of the concerned specialized Governmental body. Such authorities shall also take the advice of the said representatives and take the following measures, as appropriate, in case of verification of a breach:

a. Verbal notification for rectification of the defect with a grace period of one month,

b. Written notification for rectification of the defect with a grace period of one month,

c. Suspension of the operation permit for 3 months,

d. The request for nullification of the operation permit from the court in case of failure to rectify the defects.

Note 1- The above-mentioned facts shall be notified by the person in charge of the Secretariat of the supervisory board and registered in the records.

Note 2- The manner of taking action by the supervisory authorities based on this Article shall be specified in the circular of the Minister of the Interior to be notified within one month after the date of communication of these regulations.

Article 29- A board consisting of the representative of the Ministry of Foreign Affairs, the representative of the Ministry of the Interior, the representative of the Ministry of Intelligence and the representative of the concerned Ministry or Government organization whose object of activities is related to the foreign and international NGOs shall issue the operation permit of the said NGOs in Iran. The same board shall supervise such NGOs.

The operation of the aforesaid shall be subject to these regulations upon receipt of the permit.

Chapter Five: Miscellaneous Provisions

Article 30- The NGOs, subject to these regulations that have been established already according to the prevailing regulations, shall adapt themselves with the provisions of these regulations.

Otherwise, they shall not benefit from the advantages and facilities of these regulations.

Article 31- A NGO shall be voluntarily or obligatory dissolved based on the concerned provisions of the regulations on the Registration of Non ¬Commercial Institutions and Organizations enacted 1958, as amended.

Note- Provided the duration ofNGO has been specified as a limited one in its Articles of Association, upon expiration of the duration, in case of non¬extension of its period on the basis of the provisions of these regulations, the same shall be dissolved, ipso facto.

Article 32- The labor and the employer associations referred to in Chapter 6 of the Labor Act, the colleges and/or research institutes referred to in paragraph L of Article 1 of the Act on the Amendment of the Establishment of the Ministry of Education Act - enacted 1974 - shall not be subject to these regulations. Further, free scientific academies and non-profit schools referred to in the Establishment of Non-Governmental Schools and other Non-Governmental Associations Act which their establishment and dissolution permit shall be within the jurisdiction of Governmental bodies, according to the explicit provisions of the prevailing regulations, shall not be subject to these regulations.

Note 1- Ministry of the Interior shall be the authority in charge of issuance of permit for specialized NGOs according to the provisions of these regulations and the viewpoints of the concerned bodies.

Note 2- Permits for Youth NGOs shall be issued according to the Memorandum of Understanding (MoU) that has been signed by the Ministry of the Interior and the National Youth Organization.

Article 33- Upon the notification of this decree, the decrees numbered H27367T/12608 dated 29.01.2003, H27367T/34909 dated 15.09.2003 and H29645T/55877 dated 05.01.2004 shall stand null and void.

Mohammad-Reza Aaref; The First Vice-President