DGTO Cracks Down on Illegal Use of Trade Body Titles

The Directorate General of Trade Organizations (DGTO), under the administrative control of the Ministry of Commerce, has issued a formal public notice warning against the unlawful adoption of protected titles such as “Federation,” “Chamber,” and “Association” by unregistered entities. The regulator has stressed that only trade organizations duly licensed and registered by the DGTO are legally entitled to use these designations, as expressly provided under the Trade Organizations Act, 2013 (TOA 2013).

In its statement released on Thursday, the DGTO reaffirmed its exclusive statutory authority to license, register, and regulate trade bodies throughout Pakistan. It specifically invoked Section 3(1) of the TOA 2013, which mandates that no entity may operate or hold itself out as a trade organization without prior registration with the federal government.

The DGTO further drew attention to Section 5(3) of the Act, which categorically prohibits the incorporation or use of the words “Federation,” “Chamber,” “Association,” or any similar designation in the name or title of any entity unless it has been duly licensed and registered under the Act.

The notice highlighted a rising incidence of unauthorised entities—often formed by individuals or groups—operating under these protected titles, thereby misleading the business community, generating market confusion, and undermining the integrity of legitimate trade organisations.

The DGTO clarified that the exemption provided under Section 5(3) applies exclusively to non-commercial entities established for purposes such as the promotion of art, science, religion, charity, or sports, and does not extend to organisations engaged in trade, commerce, industry, or services.

The regulator has directed all unauthorised bodies currently employing these prohibited titles to immediately cease and desist from such usage. Non-compliance will attract stringent penalties, including monetary fines, personal liability for office-bearers, and disqualification from membership or participation in any registered trade organisation.

The DGTO has advised the business community to exercise due diligence by verifying the licensing and registration status of any trade body directly with the DGTO prior to affiliation, participation, or engagement. Entities lacking official registration hold no legal status and offer no enforceable protections or representation under the TOA 2013.