Establishing a construction company in Pakistan is rewarding. But, it must be registered to be legal and reliable. Registering a construction company in Pakistan involves some basic steps. First, choose the company’s legal structure. Then, get the required licenses and permits. Regulations are vital for making contracts with governments. They matter more for large projects.
But in detail, how is it possible to register a construction firm in this country, Pakistan? What activities are included? How can we guarantee compliance with all laws?
As promised, this guide will show you how to register a construction company in Pakistan. Do you want to know how and when to register your business? Do you want to know how to get the Pakistan Engineering Council’s approval? Let’s dive in!
What You Can Expect from This Guide
A simple guide to the procedures for registering a construction company in Pakistan. This is the best and most helpful guide, comparing the content to that of top competitors. New or changed information may not be in the competitors’ databases. They must use simple language, with no jargon. They should be non-confrontational.
The following is the step by step guide showing how to register a construction company in Pakistan with reference to company name. It covers all the steps from selection of the business structure to the acquisition of the licenses and it is written in plain language. We will then give a guide on how to register and actually start your construction business and by the time you finish going through this guide, you should be well equipped and ready for the process.
Why It Is Important to Register Your Construction Company
First, registration is important. Now, we can explain why. First, a registered construction company in Pakistan can bid for government and large projects. These are good opportunities to win more work. Second, it helps you win clients’ trust.
They feel safe doing business with a registered business that follows the laws. Besides, failing to register for operation poses certain legal risks to you. So, let’s not do that, okay? Plain and simple procedure to register a construction company in Pakistan.
Choose a business structure
First, choose a business structure for your construction company. In Pakistan, you can choose between
Sole Proprietorship:It is the easiest of the lot to set up. However, taxes and creditors, debts, and lawsuits are your responsibility.
Partnership: A partner means sharing profits, losses, and liabilities with someone.
Private Limited Company (Pvt. Ltd. ): The most serious and large-scale type, in which the company is of the same kind as the owner. Private limited is the top choice for construction companies. It can be scaled with minimal effort. Its members have limited liability. They can access contracts with little effort.
M.C Heights
A strong name is key to a brand identity. M.C Heights shows our commitment to raising construction standards. The name shows our focus on tall, high-quality, innovative, and trusted projects.
Click here to apply for registration with the SECP
Now, it’s time for the big step: incorporating your construction company. It will be a paid task. SECP is the main body that has the responsibility to register companies in Pakistan. You can register online through SECP’s e-services. This applies to both individuals and restricted companies. Here’s what you will need:
Your company’s Memorandum of Association. It is vital to assess your company’s goals and operations. This document explains them well.
Articles of Association:This document sets the rules for running the business. It includes how the company will operate.
Once you have all your documents in place, you forward them to SECP along with a small registration fee. After you apply to SECP, your company’s Certificate of Incorporation will be ready in a few days if all is well.
Intensive registration process for taxation is now joining FBR
When you have finally registered your company, then you have to obtain a registration number from FBR for tax purposes. Every firm that is incorporated under the SECP will be issued with the NTN which is used in filing of taxes.
Now let me give you the part to which I believe all the credit goes.If you will do large construction work or bid on public contracts, you must register for sales tax. In India, companies must register for sales tax if their annual sales exceed PKR 10 million.
Pro Tip: Seek the services of a proficient tax consultant with this process. Let me assure you that tax paperwork is not something that you should try to avoid, even when changing!
Select Pakistan Engineering Council (PEC)
All who want to work in construction must register with the PEC. The PEC guarantees that your business follows engineering standards and ethical conduct. PEC has a registration aspect in diverse classes. It depends on your company’s capacity and the size of the projects it can undertake. For example:
C1 to C6 Categories: These categories define the bids you can offer. They are based on your company’s financial power. C1 enables work on a large-scale project, while C6 permits work on a small-scale project.
- How to Open a Corporate Bank Account
After getting your NTN from SECP, PEC approval, it is time for opening the corporate bank account.This will enable you to perform business transactions professionally. Almost all banks will ask for an incorporation certificate, your NTN number, and a PEC certificate to open a company account.
Check that your chosen bank has good customer relations and online banking services. While you will need to watch the purse, you will also have to work at growing your business.
- Get construction licenses and permits
For varied reasons, construction work is regulated. It needs licenses and permits, which may vary by area. It may be in the form of permit, license and permission on zoning among others. State law is important and that is why it is recommended that you hire the services of a lawyer that practices in your state.
- Start Hiring and Building Your Team
Congratulations! At this point, your company is now registered to do business and is ready to go into business. Now you are able to direct your attention to looking for the right talent to help execute your ideas. You are an engineer, a laborer, or both. Please respect the labor laws when signing a contract or offer. Also, ensure safety measures are observed.
FAQS
How much time does it take to register a construction company in Pakistan?
It usually takes seven to fourteen business days. The time depends on how quickly the documents are submitted and approved.
Is it mandatory for a construction company to get an NTN number? If not, then how can I register?
Yes, it is necessary, and one has to get NTN from FBR; it is the number used for tax identification.
Should all construction organizations get registered with the Pakistan Engineering Council (PEC)?
All construction companies must register with PEC. It’s mandatory to bid on projects.
Is it possible for me to register a construction company online in Pakistan?
Yes, you can complete the registration process online, but you will need to register on SECP’s e-service setup.
Conclusion
One can learn, with caution, that registering a construction company in Pakistan is not as hard as it seems. Every step is important. It starts with choosing the right business structure. Then, register with the SECP, FBR, and PEC.
These steps make your business legal and ready for projects. This guide will help you register your business. It will also prepare your company to thrive in Pakistan’s construction market.Do not make your construction business ideas remain as mere figments of your imagination. They are ideas that have stayed in the minds or on paper for some time now; it is high time they become a reality.