The Construction Company is among Pakistan’s most lucrative and rewarding sectors that attract investors worldwide. Finance Act 2019, issued by the previous government, offers a variety of tax exemptions and relief packages to this sector and has led to a boom in investment.
With the number of Construction Company in Pakistan, the sector could be an excellent opportunity to establish your business and expand. Graana.com, Pakistan’s most innovative property portal, has created a complete guide to registering a construction business in Pakistan to assist you in starting your own business in this area.
How to Register Construction Company in Pakistan?
To establish a construction company in Pakistan, you must obtain the registration documents of several tax authorities and regulatory bodies including The Securities and Exchange Commission of Pakistan. The Federal Board of Revenue or provincial revenue boards for the provinces they serve.
Three central regulatory bodies can help legalize your construction business or start-up.
The Securities and Exchange Commission of Pakistan (SECP) is the first regulatory body to assist you in registering your business name, incorporating your business into the national database of companies, and issuing digital signatures for future transactions.
The Federal Board of Revenue (FBR) is Pakistan’s central tax registration and collection agency. It assists you in registering your business using a valid National Tax Number (NTN), the business’s legal business entity.
Pakistan Engineering Council (PEC) is the principal organization registering contractors and engineers for different construction projects. In addition being written with PEC is required to obtain a no-objection permit (NOC) for projects.
An application for registration through the Securities and Exchange Commission of Pakistan
SECP was established in 1997 due to 1997’s Securities and Exchange Commission Act. With enforcement and investigative powers, SECP performs various roles like
- Capital Market and Corporate Sector Regulation
- Control and regulation of Insurance Companies
- Supervision and regulation of non-banking finance firms
- Supervising various external service providers for the corporate and finance sectors.
Steps to Register Your Company Name
Ten of the Companies Act 2017 and Regulation 4 10 of the Companies Act 2017, along with Regulation 4 of Companies Regulations 2017, provide a comprehensive guideline regarding how to choose a suitable company name for your company. You can sign up for your company’s name on SECP’s online portal by registering your account and following the steps below.
- Log in to access e-services via the SECP website.
- If you’re a Pakistani citizen and must have a valid CNIC is necessary.
- If you’re a non-native citizen and have a valid passport number, a valid one is required.
Online applications are preferred when compared to offline forms or fee payments. If there’s any issue with SECP’s website or the online registration process, you may fill out an application on the spot and obtain a challan directly from the SECP’s office. The process is offline and takes approximately 3-5 days to complete.
Incorporation of the Company
Submitting the necessary documents for incorporation of your business in Pakistan through SECP is the second essential procedure for registering your company officially. In this procedure, you will require these documents.
Memorandum of Association:
This document is a declaration of the firm’s main activities, goals, where the head office is located, official branches, and future ventures.
Article of Association:
This document outlines the business’s functions and its corporate values.
Filing Fee:
Construction companies typically have more than one set-up, so when you apply for a certification of incorporation, you must pay the filing fee. The fee for filing varies according to the type of construction firm.
The registration is through the Federal Board of Revenue
FBR is the body that regulates all tax authorities and oversees the public and private sectors to ensure tax evaluation and collection. Your construction business is vast; to officially start it, you have to be registered at the FBR. You could be subject to sanctions and fines shortly if you do not.
The Federal Board of Revenue (FBR) will issue you your NTN (National Tax Identification Number) following the filing of an application. The below documents are required for applying for the NTN.
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