The construction industry is one of the most lucrative and highly-rewarding industries in Pakistan, attracting investors from all over the world. Finance Act 2019, issued by the previous government, brings several tax exemptions and relief packages for this industry, creating a trend of investments.
With hundreds of construction projects across the country, this industry can be the perfect opportunity to establish yourself and grow. To help you start your business in this sector, Graana.com, Pakistan’s smartest property portal, has prepared a complete guide on registering a construction company in Pakistan.
Before setting up a construction company in Pakistan, you require registration documents from several regulatory bodies and tax authorities such as ‘The Securities and Exchange Commission of Pakistan’, ‘The Federal Board of Revenue’ or provincial boards of revenue for the respective provinces. Following are the three major steps to follow before you set up your office:
There are the three major regulatory authorities that can help you legalize your construction company or startup.
Securities and Exchange Commission of Pakistan (SECP) is the first major regulatory body that helps you in the registration of your company name, incorporation of your company to the national companies database, and issuance of a digital signature for future proceedings.
The Federal Board of Revenue (FBR) is a major tax registration and collection body in Pakistan. It helps you register your business with a proper National Tax Number (NTN), which is the company’s legal business venture.
Pakistan Engineering Council (PEC) functions as the primary body for the registration of engineers and contractors for various construction projects. Moreover, registration with PEC is also mandatory to get a no-objection certificate (NOC) for the projects.
SECP came into power in 1997 through the Securities and Exchange Commission Act. With investigative and enforcement powers, SECP performs various roles such as
Company Registration Offices (CROs) play a vital role in the registration of any company and performing various tasks of SECP. The process of registering a company is not very complex as it follows a few simple steps. SECP facilitates the registration of
These are different types of companies based on their market capital, shareholders, and transfer of shares.
Registering a construction company with SECP follows two major steps:
After registration of the company name and incorporation of your construction company in the SECP database, you will be ready to apply for the National Tax Number (NTN).
Section 10 of the Companies Act 2017, along with Regulation 4 of Companies Regulations 2017 provides a complete guideline on how to choose a company name for your business. You can register your company’s name through SECP’s online portal by creating your account and following the steps listed below.
Online processes are more desirable as compared to offline form and fee submission. However, if there is any problem with the SECP’s website or online registration process, you can submit an on-site application and receive a challan form directly from the office. The offline process takes 3-5 days for completion.
Submission of the documents for the incorporation of your company in Pakistan via SECP is the second major step for official registration. During this process, you need the following documents:
Company Type | Fee |
Single Member Company | PKR- 100,000 |
Private Limited Company | PKR- 100,000 |
Public Listed Company | PKR-200 million |
Unlisted Company | PKR- 100,000 |
Other documents that you need for the registration of your construction company have been listed below.
After you have successfully applied for the certificate of incorporation, you are now ready to apply for the tax registration.
National Institutional Facilitation Technologies (Pvt) Ltd helps in the issuance of digital signatures for the company and the certificate of incorporation. However, the process is not that simple as you need to give a detailed presentation about the overall operation of the company.
FBR regulates all the tax bodies and supervises the private and public corporate sectors for tax evaluation and collection. Your construction company is an immense business, and to start that officially you must register yourself with the FBR. Otherwise, you may face legal consequences and fines in the future.
The Federal Board of Revenue (FBR) provides you with an NTN (National Tax Number) after the submission of your application. The following documents are required to apply for the NTN.
PEC is the regulatory body for the registration, regulation, and supervision of engineers, contractors, and construction companies. Established under the PEC Act, it works closely with other government institutions to regulate the construction industry.
To take up any government or private sector project, all construction companies must be registered by the Pakistan Engineering Council. The apex council does not release NOC to any construction company, until and unless it is registered and verified by PEC.
The Central Enrollment Committee (CEC) regulates the licensing process of the new companies. The authority verifies all the documents in detail and then issues the license to these construction companies. The companies that fall under the categories of C-A, C-B, C-1, C-2, C-3, and C-4 – all licensed by CEC.
However, companies that fall under the categories of C-5 and C-6 are regulated and licensed by the Regional Enrollment Committee (REC). Construction companies are usually categorized based on their net worth and shares in the market.
The following documents are to be submitted to PEC for the registration of your construction company.
For category C3 or above following documents are required:
For registration of your construction company, there are several regional and brand offices across the country for your ease. You can visit any of the nearest regional offices. For more information on how to register a construction company in Pakistan, visit Graana.com – Pakistan’s first online real estate marketplace.
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