TAXATION

How to register a construction company in Pakistan

Steps for registration of a construction company in Pakistan.

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While registering a construction company in Pakistan, the process can be divided in to following parts,

  1. Registration of a Company (Private / Public) with Securities and Exchange Commission of Pakistan (SECP).
  2. NTN Registration with the Federal Board of Revenue (FBR).
  3. Registration with the Pakistan Engineering Council (PEC).

Types of businesses on the basis of legal structure

There are three types of businesses on the basis of legal structure,

  • Sole Proprietorship business
  • Partnership business
  • Private / Public Limited Company

In case of sole proprietorship business you have to register business name in the FBR profile of the taxpayer before registration in PEC. In case of partnership / firm business the firm will be first registered with registrar of firms (Form C is issued). Private / Public company as mentioned above are registered with SECP (certificate of incorporation is issued) before taking further process.

Then, you have to register your company with the Federal Board of Revenue for National Tax Number (NTN). Once you have fulfilled all of these requirements, you will need to register the company with Pakistan Engineering Council (PEC). 

PROCESS OF REGISTRATION OF PRIVATE / PUBLIC COMPANIES WITH SECP

SECP-securities-exchange-commission-of-Pakistan

There are options that you can also register your business either as Single Member Company (SMC). which requires one director and a secretary. You may register Private Limited Company, which requires at least two directors.

There are three main steps for registration of construction company with SECP.

Step 1: Reservation of 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.

The SECP issues ‘Company Name Reservation Certificate. Collect from CRO or delivered at given address.

Step 2: Submission of Documents with SECP 

Following is a list of documents you need to prepare.

  • Memorandum of Association:
  • Articles of Association: 
  • 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.
  • 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 
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These documents can also be submitted in a PDF format on SECP’s website.

Step 3: Issuance of Certificate of Incorporation 

Securities and Exchange Commission of Pakistan examine your submitted documents. The National Institutional Facilitation Technologies (NIFT) will grant a digital signature for your company. You can download it by logging in to the online portal for the SECP.

The NIFT will also issue you a certificate of incorporation, which can be taken by explaining the nature and functions of the company.

REGISTRATION OF BUSINESS WITH FEDERAL BOARD OF REVENUE (FBR)

FBR-Taxpayer-Integration

following documents are required:

  • TRF Form 1 (Taxpayer registration form)
  • Proof of business registration (Form C / incorporation certificate)
  • Memorandum of Association
  • Articles of Association 
  • Bank account maintenance certificate
  • Copies of CNIC of all directors / partners
  • Business address 
  • Rent agreement / Registry
  • Authority letter of directors / partners

REGISTRATION OF BUSINESS WITH PAKISTAN ENGINEERING COUNCIL

In some cases, the registration with FBR is the last step of the registration process. However, civil and government contractors need to register their construction companies with the Pakistan Engineering Council (PEC).

Pakistan-Engineering-Council-PEC

Categories of companies for PEC registration

PEC registration categories for constructors and operators, are C-A, C-B, C-1, C-2, C-3, C-4, C-5 and C-6.

The Central Enrolment Committee (CEC) issue registration license to companies that fall under C-A, C-B, C-1, C-2, C-3 and C-4 at PEC headquarters in Islamabad. Regional Enrolment Committees (REC) register C-5 and C-6 companies at Regional and Branch Offices.

These categories differ on the basis of a company’s net worth, and the number of engineers.

The PEC fee for C-6 company starts from PKR 15,000 and increases with each category.

Following documents are required for PEC registration:

  • 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 Statements 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

Regional offices of Pakistan Engineering Council.

CityAddressContactEmail
KarachiST-14/A, Block 2, Kehkashan-V, Clifton, Karachi.021-3834970karachi@pec.org.pk
Lahore37 Shershah Block, opp. Passport Office, New Garden Town, Lahore.042-99232020042-99232021lahore@pec.org.pk
PeshawarPlot No 18-B/1, Office Enclaves, Phase V, Hayatabad, Peshawar.091-9217880peshawar@pec.org.pk
QuettaMain Samungli Road, Quetta081-2871673quetta@pec.org.pk

RELATED STORIES

https://www.globaltaxconsultants.pk/how-to-become-active-taxpayer-filer-in-fbr/
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