How to Register a Construction Company in Pakistan in 2023
The construction industry is booming industry in the real estate sector of Pakistan. It attracts investors from all over the world. Many construction companies in Pakistan are providing top-notch services and bringing a positive impact on GDP. There is a huge profit margin in the construction business in Pakistan.
Due to government relief packages and incentives like tax exemptions and subsidies, the investment trend is at its peak in Pakistan. With multiple projects and development in real estate, the construction industry offers an ideal opportunity to grow and generate revenue. Starting a business is risky and considered a daunting task.
You need to worry about finances, daily operations, and setting up an office. The most important thing is registering the business with different regulatory bodies and tax authorities. If you are also planning to start a venture in the construction industry, the first thing you must know is how to register a construction company in Pakistan in 2023. Looking for more fascinating content? Check out Real estate companies in Pakistan.
Steps to Register a Construction Company in Pakistan:
Construction Company Registration in Pakistan can be complicated for new businesses. The contractors’ registration process needs several bodies, such as ‘The Securities and Exchange Commission of Pakistan,’ to go one step ahead to obtain registration and proper licensing. Thanks to technology contractor registration process can also be done online.
There are different construction license categories in Pakistan. Hence the contractor registration process can be complicated for first-time registers. We are here with a comprehensive step-by-step guide on the construction company registration procedure in Pakistan. Looking for more insights? Check out Shopping malls in Peshawar.
1. Registration with SECP
To go with the construction company registration process, there are three major regulatory authorities to legalize the construction company or any new business. The first on our list is registered with the Securities and Exchange Commission of Pakistan (SECP).
SECP is the most crucial and first regulatory body to get your company registered to your name. It ensures the registration of the company name. It incorporates the national companies database with your company and issues digital signatures for future processes.
The regional offices perform these functions, commonly known as Company Registration Offices or CROs. The commission has also introduced a window Facility for the company’s registration.
To register the construction companies in Pakistan, the owner can either register as a Single Member Company or a Private Limited Company. The Single Member Company requires one director and a secretary, while the Private Limited Company requires at least two directors.
The procedure of construction company registration in Pakistan with SECP consists of 3 steps, and it takes almost 1.5 months to finish the process.
Let’s have a look at all three steps:
- Business Name Reservation:
The first step to registering a company in Pakistan is reserving a business name. You can apply to “Business Name Reservation” by visiting the nearest SECP’s regional office or applying online.
The constructor must sign up on SECP’s online portal to apply online. Once signed up, log in to the e-Service Account under the tab “Company Name Reservation.”
The business holders of construction companies in Pakistan or any other company have to propose three names for the company, and the registrar finalizes the one from them and includes it in the incorporation document. To ensure the name is not in use already, type the proposed name and click on the ‘SECP Online Company Name Search tool for search.
SECP takes only a day to issue the Company Name Reservation Certificate. The certificate can be picked up from the nearest regional office or delivered to your address in the application. Also get to know about business ideas in Pakistan.
- Documents of Incorporation – Preparation & Submission:
The second step of registration with SECP is to submit incorporation documentation. Here is a list of documents that are required:
Memorandum of Association – MoA:
It defines the business niche of the company. It contains the business’s name and the region/province where it is located.
Articles of Association – AoA:
The document explains the company’s function.
Fee for Filling business:
The filing fee for small businesses with a capital of one lac is approx. One thousand eight hundred rupees if done online and 3500 for submission offline. The fee varies according to company size and capital.
- CNIC scanned copies of all directors.
- Scanned Bank Receipt of Deposit (If fee made offline) of construction company registration fee in Pakistan.
- Authorization document by the concerned person.
- The documents can be uploaded in PDF Format.
- Authorization for the filing of documents by respective personnel.
- Certificate of Incorporation Issuance:
Once the submitted documents are evaluated and verified by the Securities and Exchange Commission of Pakistan (SECP), the NIFT – The National Institutional Facilitation Technologies (NIFT) will provide the owner with a digital signature for the company. It can be obtained by signing in to the SECP’s online Portal.
The National Institutional Facilitation Technologies also issues a certificate of incorporation after submitting a comprehensive presentation of the business nature and operation. You can also read about construction companies in Peshawar.
2. Registration of Company with Federal Board of Revenue (FBR):
Getting a construction company registered by FBR is easier and simpler than SECP. Here is how you can do it:
After registration with SECP, it is time to move to the next step, i.e., registration with FBR for taxation. Therefore, you will need to apply for NTN. Here is the list of documents you will need to submit. Let’s have a look:
- NTN Form
- Company’s Registration Form
- Bank Account Number
- All director’s CNIC copies
- Business Address Verification.
You may also need to register for Sales Tax Number. The procedure is the same and can be done online through FBR’s Tax Asaan Mobile App. Curious to explore related topics? Don’t miss real estate companies in Islamabad.
3. Registration with Pakistan Engineering Council (PEC):
The third and most important registration is with Pakistan Engineering Council. The construction company can register under any of the several categories the Pakistan Engineering Council (PEC) offers.
It is important to note that FBR is the last step of business registration for most companies. However, the contractors must register them with PEC. to get the company working; PEC contractors register businesses accordingly. The Pakistan Engineering Council is a main professional entity that regulates engineering tasks and professions in the country. Under the PEC Act, the crucial role of the council is the registration of contractors and engineers along with the accreditation of programs related to engineering that Universities and Higher Education institutes in Pakistan offer. The PEC contractors abide by the rules and regulations of the council. PEC Registration is time taking yet easy procedure. Don’t miss out real estate companies in Peshawar.
It is compulsory to register construction companies in Pakistan with PEC as the contractors can only get government or civil projects for construction by getting NOC from the concerned council. PEC contractor registration is the same as the registration of a construction company registration.
There are several construction license categories in Pakistan for operators and constructors. The construction license categories in Pakistan for PEC contractor registration and companies’ registration are commonly known as
CEC – The Central Enrolment Committee is responsible for processing and approving the license of new construction companies under C-A, C-B, C-1, C-2, C-3 & C-4 at the headquarters of PEC in Islamabad. The rest companies under C-5 and C-6 categories can get registration at Regional & Branch offices. Also read about best real estate marketing ideas.
The PEC Company registration categorization is based on the Net worth of the construction company, the number of employees/engineers, etc. The registration fee for C-6 Company starts at fifteen thousand rupees and goes higher with every category. The registration process is also mentioned on the PEC firm registration portal. After the complete process, you will get a PEC Registration certificate. Get to know about best housing societies in Islamabad.
The list of required documents that are needed at the time of PEC Company registration is as follows:
- PEC firm registration form for application
- Copies of the Computerized National Identity Card of all partners, directors, and shareholders.
- Payment Voucher (Original)
- Audited Statement of Finances by Certified CA or bank statement of last year.
- NTN Certificate Copy.
- List of equipment and machinery owned by the Company (if any)
- Agreement of machinery supplier (if any)
- Duly Signed organization chart of the Company.
- Partnership deed & Form C or notarized certificate of Sole ownership (depends on the Company)
- Incorporation Certificate
- Undertaking from Partners, Directors, and CEO on 100 rupees stamp paper.
The list of documents for PEC Registration can vary from Company to Company. Visit the nearest regional office of PEC for complete details. The PEC firm registration portal also provides detail of the required documents. For e-registration, visit the PEC online registration portal.
After you have fulfilled the PEC firm registration requirements, you can get a PEC Registration certificate. To register online, you can visit the PEC Portal Registration tab on their website. The visitors can also view the PEC contractor list before finalizing the Company for the construction of their project. Curious to explore related topics? Don’t miss top commercial areas to invest in Islamabad.
That’s all for now! We hope that now you can easily register your new construction business in Pakistan and bring revolution in the real estate industry of Pakistan towards betterment and progress. Also if you want to explore the beauty of Pakistan you can read our blog on beautiful northern areas of Pakistan.