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How Can I Register As A Contractor In Pakistan?

To establish a legitimate construction contracting business in Pakistan, you need to go through a multi-step registration process with various regulatory authorities. This comprehensive guide will walk you through the entire procedure, ensuring you comply with all legal requirements and position your company for success in the lucrative Pakistani construction industry.

The construction sector in Pakistan is booming, attracting investors from around the globe. The government’s Finance Act 2019 introduced several tax exemptions and relief packages, further fueling the trend of investments in this industry. With hundreds of construction projects underway across the country, it presents an opportune time to establish your contracting business and capitalize on this growth.

Panther Developers, a leading construction firm in Pakistan, understands the complexities involved in setting up a construction company.

How Can I Register As A Contractor In Pakistan?

How Can I Register As A Contractor In Pakistan?

To register your construction contracting business in Pakistan, you need to follow three major steps:

  1. Registration with the Securities and Exchange Commission of Pakistan (SECP)
  2. Registration with the Federal Board of Revenue (FBR)
  3. Registration with the Pakistan Engineering Council (PEC)

Let’s delve into each of these steps in detail.

Step 1: Registration with the Securities and Exchange Commission of Pakistan (SECP)

The SECP is the primary regulatory body responsible for the registration of companies in Pakistan. It oversees tasks such as company name registration, incorporation, and issuance of digital signatures for future proceedings.

The process of registering with the SECP involves two main stages:

A. Registration of Company Name
B. Incorporation of the Company

A. Registration of Company Name

Section 10 of the Companies Act 2017, along with Regulation 4 of the Companies Regulations 2017, provides guidelines for choosing a company name. You can register your company’s name through the SECP’s online portal by following these steps:

  • Create an account on the SECP e-services website
  • Provide a valid CNIC (for Pakistani nationals) or passport number (for foreign nationals)
  • Fill out the required information and submit the form
  • Verify the security code sent to your registered email or phone number
  • Generate a PIN after verifying the security code
  • Deposit the fee through the generated challan form at a nearby MCB or UBL bank, or pay online using a credit or debit card
  • If your desired name doesn’t contain any prohibited words, you will receive confirmation that your company’s name has been reserved

B. Incorporation of the Company

After reserving your company name, the next step is to incorporate your construction contracting business. This process requires the following documents:

  • Memorandum of Association: Outlines the company’s principal business, aims, head office location, official branches, and future ventures.
  • Articles of Association: Discusses the functionality of the company and its corporate values.
  • Filing Fee: The fee varies depending on the type of your construction company (e.g., single-member, private limited, public listed, or unlisted).
  • Scanned copies of CNICs of all directors
  • Scanned bank deposit slip
  • Authorization document for company registration
  • Once you have successfully applied for the certificate of incorporation, you can proceed to tax registration.

Step 2: Registration with the Federal Board of Revenue (FBR)

The Federal Board of Revenue (FBR) regulates tax bodies and supervises private and public corporate sectors for tax evaluation and collection. To legally operate your construction contracting business, you must register with the FBR and obtain a National Tax Number (NTN).

To apply for an NTN, you will need to submit the following documents:

  • NTN application form
  • Company incorporation certificate
  • Original letterhead of the company signed by all directors
  • Memorandum of Association
  • Articles of Association
  • Bank account number and deposit receipts
  • CNIC copies of the board of directors
  • Company email address
  • Cell phone number registered against the CNIC of a director
  • Original evidence of ownership of the business premises
  • Originally paid utility bills of the business premises for at least the last 3 months

Step 3: Registration with the Pakistan Engineering Council (PEC)

The Pakistan Engineering Council (PEC) is the regulatory body responsible 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 undertake any government or private sector project, all construction companies must be registered with the PEC. The apex council will not issue a No Objection Certificate (NOC) to any construction company until it is registered and verified by the PEC.

The Central Enrollment Committee (CEC) regulates the licensing process for new companies falling under categories C-A, C-B, C-1, C-2, C-3, and C-4, based on their net worth and market shares. Companies in categories C-5 and C-6 are regulated and licensed by the Regional Enrollment Committee (REC).

To register your construction contracting business with the PEC, you will need to submit the following documents:

  • Company registration form
  • Copies of CNICs of the board of directors, shareholders, and partners
  • Original paid fee voucher
  • Bank statements of the company’s bank accounts
  • NTN certificate copy
  • List of equipment and machinery owned by the company
  • Contract agreement with the machinery supplier
  • Organizational chart signed by the CEO
  • Certificate of ownership of the company
  • Incorporation certificate
  • Undertaking from the board of directors/partners/shareholders on a 100-rupee stamp paper

For category C3 or above, you will additionally need to provide:

  • SECP registration evidence
  • Audited financial statement or bank certificate
  • Experience letters of each director
  • List of major projects completed
  • Bank statement for the last 1 year
  • Copy of the NTN certificate

By following these steps meticulously, you can successfully register your construction contracting business in Pakistan and position yourself for growth in this thriving industry. It’s essential to stay up-to-date with any changes in regulations and consult with professionals, such as Panther Developers, who have extensive experience navigating the registration process.

Remember, compliance with legal requirements not only ensures the legitimacy of your operations but also instills confidence in potential clients and partners, paving the way for a prosperous future in the dynamic Pakistani construction sector.

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