A Step-by-Step Guide
Starting a new company is always a difficult task. Apart from the capital, day-to-day operations, and the construction of an office, you must also register with numerous regulatory bodies and tax authorities. If you want to register a construction firm in Pakistan, you’ll want to go a step farther than most other enterprises to have the right licensing. As a result, to make the process easier for you here is a complete step-by-step guide about how to register a construction company in Pakistan.
The registration of a construction business in Pakistan is separated into three stages
- Registration with Pakistan’s Securities & Exchange Commission
- Registration with the Pakistan Engineering Council
- Registration with the Federal Board of Revenue
Each one of these operations contains a set of phases, each with its own set of requirements. To begin a construction business, you must first register your company with Pakistan’s Securities & Exchange Board. Afterward, when, you must register your business with the Federal Board of Revenue and apply for a National Employer Identification Number (NTN). Once you’ve completed all of these steps, you’ll have to create your account with the Pakistan Engineering Council in order to start operating as a contractor.
In Pakistan, you also can register your construction company with the Association of Builders and Developers of Pakistan, or ABAD. This is not, however, required.
Registration With The Pakistani Securities And Exchange Commission
The Securities and Exchange Commission of Pakistan, or SECP, is the country’s major economic regulatory agency. The main tasks of the SECP, which is based in Islamabad, also include registration of corporations in Pakistan and the regulation and monitoring of the corporate sector. These functions are handled by the commission’s regional offices, also called Registered Office Offices or CROs.
The commission started implementing a One-Stop-Shop for company registration. Furthermore, you can register your company as just a Single Member Company only with one director and a secretary, or even as a Private Limited Company with at least two directors. There are many three primary procedures to establishing a construction company with the SECP in Pakistan. This stage of the procedure takes a minimum of 1.5 months to complete.
1:Obtaining a Business Name Reservation
The first step in constructing a company in Pakistan is to reserve a business name. You can submit your ‘Business Name Reservation’ application in either person at your nearest SECP district director or online. To submit an electronic application, you first must register on the Security exchange of Pakistan’s web portal. After that, go off to e-Service Account and search for ‘Company Name Reservation.’ You should offer three names for your company, one of which is selected by the registrar included in the registration documentation. Just use the ‘SECP Online Company Name Search’ tool to double that your proposed names aren’t already being used. The ‘Company Name Reservation Certificate’ is usually issued within a day by the SECP. You get the option of picking it up at your local CRO or sending packages to the address you provided in your application.
2: Preparation and submission of incorporation documents
The second step in the company registration process in Pakistan is to submit documents of incorporation to an SECP. The list consists of the documents you will need to prepare.
Memorandum of Association: This section outlined the company’s primary business, as well as its name and the province where it is based.
Articles of Association: This document lays out how businesses will operate.
Filing Price: For smaller companies with a capital that is less than PKR 1 lakh, the filing fee is PKR 1,800 for application registration and PKR 3,500 for offline submission. The cost of incorporating a company varies based on the amount of investment and the size of the organization.
Other prerequisites for business registration include:
- CNIC copies of all directors scanned
- Bank Deposit Receipt Scanned (In case of offline payment)
- Authorization for respective people to file papers
You can also upload these documents to SECP’s e-portal in PDF format.
Certificate of Incorporation is issued
The National Institutional Facilitation Technologies (NIFT) will award your company a digital signature just after the Securities & Exchange Commission of Pakistan examines and verifies your supplied documents. You can obtain it by logging into SECP’s web portal. The NIFT will also issue you a certificate of incorporation, which you can receive only after submitting a detailed presentation about your company’s nature and operations.
It’s important to keep in mind that these standards may differ from case to instance. Do you want to learn more about the requirements and procedures for forming a business in Pakistan? If that’s the situation, take a look at our step-by-step approach to forming a company in Pakistan.
The Federal Board Of Revenue requires registration
You must register your firm with the Federal Board of Revenue (FBR) for taxation after registering with the Securities and Exchange Commission of Pakistan. You must specify the required documents and information in possible to qualify for NTN.
- Form for obtaining a national tax
- identification number Proof of company
- registration Memorandum
- Association Articles
- Association Bank account number
- CNIC copies for all directors
- Business address that has been verified
The Pakistan Engineering Council requires registration
The registration with FBR is typically the last stage in the procedure for most enterprises. Contractors, but on the other hand, must register their construction firms with the Pakistan Engineering Council, or PEC. The Pakistan Engineering Council is the country’s major professional body for regulating the construction industry. The main functions of such a council, which was formed under the PEC Act, are the registration of engineers and constructors, and also the accreditation of engineering programs given through Pakistan’s institutions of higher education and universities. It is necessary to register a construction company with the Pakistan Engineering Council (PEC) because it is impossible to take on any civil or government construction projects without first obtaining a no-objection certificate (NOC) from the top council.
C-A, C-B, C-1, C-2, C-3, C-4, C-5, and C-6 are the eight PEC registration categories for constructors and operations. At PEC offices in Islamabad, the Central Enrolment Committee (CEC) examines and approves the licensing of new companies in the C-A, C-B, C-1, C-2, C-3, and C-4 categories. However, the registration of C-5 and C-6 corporations are conducted by Regional Enrolment Committees (REC) at Regional and Branch Offices. These categories change based on a corporation’s net value, the number of engineers, and other factors. For a C-6 construction firm, the PEC registration fee starts at PKR 15,000 and increases with each category.
- The form for applying
- All directors, partners, and shareholders have copies of their CNIC.
- Voucher for original fee payment
- Last year’s bank statement or a Chartered Accountant-certified Audited Financial Statement
- NTN certificate copy
- List of the construction company’s machinery and equipment, as well as any contract agreements with equipment suppliers as well as an Organizational Chart officially approved by the CEO.
- Depending on the company, a notarized certificate of sole proprietorship OR a copy of the partnership deed and FORM C is required.
- Incorporation certificate
- On PKR 100 stamp paper, the CEO, directors, and investors sign an undertaking.