Starting a new business is always a daunting task. Apart from worrying about the capital, the day-to-day operations and setting up an office, you also need to register it with various regulatory bodies as well as tax authorities. If you’re planning to register a construction company in Pakistan, you will be required to go a step further than most other businesses in order to obtain proper licensing.
Therefore, in order to make the process easier for you, here’s a complete step-by-step guide on the construction company registration procedure in Pakistan.
How to Register a Construction Company in Pakistan
The construction company registration process in Pakistan is divided into three parts:
- Registration with the Securities and Exchange Commission of Pakistan
- Registration with the Federal Board of Revenue
- Registration with the Pakistan Engineering Council
Each of these procedures involves a number of steps with different requirements. In order to start a construction business, you first need to register your company with the Securities and Exchange Commission of Pakistan. Then, you have to register your company with the Federal Board of Revenue and apply for the National Tax Number (NTN). Once you have fulfilled all of these requirements, you will need to register the company with Pakistan Engineering Council to finally start working as a contractor.
You can also register your construction company in Pakistan with the Association of Builders and Developers of Pakistan, more commonly known as ABAD. However, it is not mandatory.
Registration with the Securities and Exchange Commission of Pakistan
The Securities and Exchange Commission of Pakistan, also known as SECP, is the primary financial regulatory authority in the country. Headquartered in Islamabad, the main functions of SECP include registration or companies in Pakistan along with regulating and monitoring the corporate sector. The regional offices, known as Company Registration Offices or CROs, perform these functions for the commission.
The commission has recently introduced a One Window Facility for company registration.
Moreover, you can register your business either as Single Member Company, which requires one director and a secretary, or Private Limited Company, which requires at least two directors.
There are three main steps of construction company registration in Pakistan with the SECP. On average, it takes about 1.5 months to complete this part of the process.
Step 1: Reserving a Business Name
Reserving a business name is the very first step to register a company in Pakistan. You can either submit your ‘Business Name Reservation’ application by visiting your nearest regional office for the SECP or do it online.
In order to submit an electronic application, you will be required to sign up on the online portal of the Security and Exchange Commission of Pakistan. You can then login to e-Service Account for ‘Company Name Reservation.’ You have to propose three names for your company, out of which the registrar will finalize one and include it in the incorporation documents.
To make sure your proposed names aren’t already in use, use the ‘SECP Online Company Name Search’ tool to do a quick search.
It usually takes the SECP a day to issue the ‘Company Name Reservation Certificate. You can either pick it up from the nearest CRO of have it delivered to the address you’ve mentioned in your application.
Step 2: Preparation and Submission of Documents of Incorporation
The submission of documents of incorporation to the SECP is the second step of the company registration process in Pakistan. Here is a list of documents you need to prepare.
- Memorandum of Association: This document defines the principle business of the company along with its name and the province where its main office is located.
- Articles of Association: This document explains how the company will function.
- Filing Fee: The filing fee for small companies with a capital of approximately PKR 1 lakh is PKR 1,800 for online submission and PKR 3,500 for offline submission. The fees for registering a company varies with the capital and size of the business.
Other company registration requirements include:
- Scanned copies of CNIC of all directors
- Scanned Bank Deposit Receipt (In case of offline payment)
- Authorization for the filing of documents by respective personnel
You can also submit these documents in a PDF format on SECP’s e-portal.
Step 3: Issuance of Certificate of Incorporation
Once the Securities and Exchange Commission of Pakistan evaluates and verifies your submitted documents, the National Institutional Facilitation Technologies (NIFT) will grant a digital signature for your company. You can acquire it by logging in to the online portal for the SECP.
The NIFT will also issue you a certificate of incorporation, which can only be obtained after submitting a detailed presentation about the nature and operation of your company.
It is important to note that these requirements may vary on a case-to-case basis.
Do you need more information about the requirements and procedure of company registration in Pakistan? If so, you can check out our step-by-step guide on how to register a company in Pakistan.
Registration with the Federal Board of Revenue
After registering your company with the Securities and Exchange Commission of Pakistan, you need to register your business with FBR for taxation.
In order to apply for NTN, you will be required to submit the following documents and details.
- National Tax Number form
- Proof of company’s registration
- Memorandum of Association
- Articles of Association
- Bank account number
- Copies of CNIC of all directors
- Verified business address
The process of acquiring a Sales Tax Number (STN) is almost similar. However, you can now register your company for Sales Tax with FBR’s Tax Asaan mobile app.
Registration with the Pakistan Engineering Council
For most businesses, the registration with FBR is the last step of the process. However, contractors need to register their construction companies with the Pakistan Engineering Council, better known as PEC, as well.
The Pakistan Engineering Council is the primary professional body that regulates the profession of engineering in the country. Constituted under the PEC Act, the main functions of this council include registration of engineers and constructors along with accreditation of engineering programs offered by higher education institutes and universities in Pakistan.
It is mandatory to register a construction company in Pakistan with PEC, as cannot take on any civil or government construction projects without obtaining a no-objection certificate (NOC) from the apex council.
There are eight different PEC registration categories for constructors and operators, namely C-A, C-B, C-1, C-2, C-3, C-4, C-5 and C-6. The Central Enrolment Committee (CEC) processes and approves the licensing of new companies that fall under C-A, C-B, C-1, C-2, C-3 and C-4 at PEC headquarters in Islamabad. Meanwhile, Regional Enrolment Committees (REC) processes the registration of C-5 and C-6 companies at Regional and Branch Offices. These categories differ on the basis of a company’s net worth, the number of engineers and such. The PEC registration fee for a C-6 construction company starts from PKR 15,000 and goes higher with each category.
These are the documents that have to be submitted to register a construction company in Pakistan with PEC.
- The application form
- Copies of CNIC of all directors, partners and shareholders
- Original fee payment voucher
- The bank statement for last year or Audited Financial Statement certified by a Chartered Accountant
- Copy of NTN certificate
- List of machinery and equipment owned by the construction company, if any
- Contract agreement with the machinery supplier, if any
- Organizational Chart of the firm duly signed by the CEO.
- Notarized certificate of sole proprietorship OR Copy of partnership deed and FORM C, depending on the company
- Certificate of incorporation
- Undertaking from CEO/directors/partners on stamp paper of PKR 100
*Please note that the list of required documents may vary on a case-to-case basis. You can visit your nearest regional centre for more information.
The Regional Office of Pakistan Engineering Council in Pakistan
Here are the addresses and contact details of the regional offices of Pakistan Engineering Council.
| City | Address | Contact | |
| Karachi | ST-14/A, Block 2, Kehkashan-V, Clifton, Karachi. | 021-3834970 | karachi@pec.org.pk |
| Lahore | 37 Shershah Block, opp. Passport Office, New Garden Town, Lahore. | 042-99232020042-99232021 | lahore@pec.org.pk |
| Peshawar | Plot No 18-B/1, Office Enclaves, Phase V, Hayatabad, Peshawar. | 091-9217880 | peshawar@pec.org.pk |
| Quetta | Main Samungli Road, Quetta | 081-2871673 | quetta@pec.org.pk |
To find more about the cost of registering a company in Pakistan, stay tuned to Zameen Blog, the best real estate and lifestyle blog in the country.
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