To register a construction company in Pakistan, you need to follow certain requirements and procedures. By fulfilling these requirements and following the registration process, you can establish and operate a construction company in Pakistan in compliance with legal and regulatory standards.

Company Incorporation: Choose a unique name for your construction company and get it reserved with the Securities and Exchange Commission of Pakistan (SECP) and then prepare the necessary documents, including the Memorandum and Articles of Association, and submit them to the SECP for company incorporation.

Business Registration: You also have an option to register your construction business with the FBR as a sole proprietor or partnership firm with the Registrar of Firms if you does not intend to incorporate a company.

Tax Registration: You must need to register your construction company or business for tax purposes with the Federal Board of Revenue (FBR) to obtain a National Tax Number (NTN) and Sales Tax Registration Number (STRN).

Registration with Relevant Authorities: Depending on the nature of your construction projects, you may need to register with specific regulatory bodies such as the Pakistan Engineering Council (PEC) for engineering services.

Labour and Social Security Registration: You would also need to register your construction company with the Employees’ Old-Age Benefits Institution (EOBI) and the Provincial Employees’ Social Security Institution (PESSI) for the welfare of your employees.

Obtain Licenses and Permits: You would need to obtain the licenses and permits from local authorities for construction activities, including building permits, environmental clearances, and NOCs (No Objection Certificates).

Bank Account Opening: Open a bank account in the name of your construction company to manage financial transactions and payments.

Legal Documentation: Legal documentation are much important while registering a construction company. These documents are the core foundation of a corporate body that provides a strong base for your business to stand on which ensures that your company operates within the laws, policies and follows regulations. These documents include business plan, registration certificates, insurance policies, contracts, safety protocols, and financial records.

Health and Safety Permits: Obtain health and safety permits which will ensure that your construction activities comply with the safety standards and regulations to protect workers and the public.

Insurance: This is not mandatory but you should consider for obtaining insurance coverage for your construction projects, including construction all-risk insurance, workers’ compensation insurance, and liability insurance etc.

The total registration fee for setting up a construction company in Pakistan depends on several factors, including the type of company, the scale of operations, and the specific requirements of regulatory bodies. But we are providing an approximate breakdown of the fees you may have to pay:

SECP Fee: The fee for registering your company with the Securities and Exchange Commission of Pakistan (SECP) typically ranges from PKR 10,000 to PKR 25,000, depending on the authorized capital of the company. But it does not include service cost.

Pakistan Engineering Council (PEC) Fee: If your construction company involves engineering services, you will need to register with the PEC. The registration fee with the PEC can be around PKR 15,000 to PKR 30,000. For Sole Proprietor fee is 10,000/-, for Partnership Firm fee is 20,000/-, and for Private Limited Company fee is 30,000/-. Please also note that fee for Pre-Registration of Foreign Consulting Engineers is $ 1,000/- and Processing Fee of Foreign Consulting Engineers fee is also $ 1,000/-.

Professional Fee: You may need to engage the services of our professional lawyers to assist with the registration process. The professional fee depends but generally ranges from PKR 50,000 to PKR 50,0000.

Other NOCs, Permits, and Licenses: The fees for obtaining other necessary permits, licenses, and NOCs (such as building permits, environmental clearances, and other regulatory approvals) can vary based on the specific requirements of local authorities. This would cost you few thousand rupees, depending on the scope of the construction projects.

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 it cannot take on any civil or government construction projects without obtaining a no-objection certificate (NOC) from the apex council.

Documents Required for PEC Registration

Following documents 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.

Construction License Categories in Pakistan

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) process 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.

Once you have complied with all the requirements of the construction company registration then it comes to the stage of the company registration with the Pakistan Engineering Council (PEC). For this purpose, we split the registration process into the following sections;

1. PEC Secretariat (IPEA section)

1. Receipt of the application along-with Competency Profile and Fee.
2. Scrutiny of the application against checklist of the requirement and additional information, if required.
3. Verification/Assessment of the CPD points earned.
4. Submission of the IPEA Monitoring Committee.
5. Issuance of the IPEA Registration Certificate as IntPE(Pak) after Approval by EC.
6. Entry the name in IPEA Register.
7. Issuance of the renewal card of IntPE (Pak).

2. PEC-IPEA Monitoring Committee