Pakistan’s construction industry plays a vital role in infrastructure development, real estate, and national economic growth. Whether you are launching a small contractor business, an infrastructure development firm, or a real estate builder, your construction company must be properly registered and licensed to legally operate.
This guide covers the full process of registering a construction company in Pakistan, including incorporation with SECP, tax registration, licensing with PEC (Pakistan Engineering Council), and other legal requirements.
Step 1: Choose the Right Legal Structure
| Type of Construction Business | Recommended Legal Form |
|---|---|
| Small-scale contracting | Sole Proprietorship or AOP |
| General contracting company | Private Limited Company |
| Infrastructure & government projects | Private or Public Limited Company |
| Foreign joint ventures | Incorporated Joint Venture (Pvt Ltd) |
A Private Limited Company is ideal for credibility, bank dealings, bidding on government tenders, and future expansion.
Step 2: Reserve Company Name with SECP
-
Visit the SECP eServices portal
-
Use the “Name Reservation” feature
-
Choose a unique name reflecting construction services (e.g., “Skyline Builders Pvt Ltd”)
-
SECP will issue a Name Reservation Certificate (valid for 60 days)
Step 3: Incorporate the Company via SECP
Log in to SECP eServices and complete the incorporation process.
Documents Required:
-
Name Reservation Certificate
-
Memorandum of Association (MOA) – include clauses like “construction of buildings, roads, bridges, infrastructure development, real estate”
-
Articles of Association (AOA)
-
CNICs/passports of directors and shareholders
-
Forms 21 (registered office) and 29 (board details)
-
Payment of incorporation fee online or via designated banks
Outcome:
SECP will issue a Certificate of Incorporation and Company Registration Number (CRN)
Step 4: Register with the Federal Board of Revenue (FBR)
-
Visit the FBR Iris portal
-
Register the company for a National Tax Number (NTN)
-
Register for Sales Tax on Services (if applicable)
-
Provide office address, business activity, and bank account info
If you engage in works contracts or taxable services, also obtain Sales Tax Registration Number (STRN)
Step 5: Register with the Pakistan Engineering Council (PEC)
For executing engineering and government construction projects, PEC registration is mandatory.
PEC Registration Process:
-
Visit www.pec.org.pk
-
Select appropriate constructor category (C-6 to C-1) based on financial worth
-
Fill online application form
-
Attach:
-
SECP documents
-
NTN certificate
-
Bank statement or certificate showing required capital
-
Experience record and staff details
-
Affidavit and undertaking
-
PEC fee payment receipt
Categories and Capital Requirements:
| PEC Category | Minimum Capital | Project Limit |
|---|---|---|
| C-6 | Rs. 1 million | Up to Rs. 25 million |
| C-5 | Rs. 2.5 million | Up to Rs. 65 million |
| C-4 | Rs. 5 million | Up to Rs. 150 million |
| C-3 to C-1 | Rs. 7.5 million to Rs. 250 million+ | Rs. 500 million to unlimited |
Outcome: PEC issues a Constructor License valid for 1 year, renewable annually.
Step 6: Open a Business Bank Account
Open a corporate bank account in your company’s name with:
-
SECP Certificate of Incorporation
-
NTN
-
Board Resolution
-
MOA and AOA
-
CNICs of signatories
Deposit the paid-up capital and begin official transactions.
Step 7: Register with Provincial Revenue Authority (If Applicable)
If your company provides construction-related services such as:
-
Architectural design
-
Project management
-
Supervision or consultancy
Register with:
| Province | Authority |
|---|---|
| Punjab | PRA |
| Sindh | SRB |
| KPK | KPRA |
| Balochistan | BRA |
File monthly sales tax on services returns if registered.
Step 8: Additional Registrations
Depending on your operations:
-
EOBI & Social Security: If employing more than 5 workers
-
WeBOC (Customs Portal): For import of construction equipment
-
Chamber of Commerce: Recommended for certification and industry networking
-
Environmental NOC: For large-scale projects or construction near sensitive zones
-
Labour Department: Registration for labour welfare compliance
Step 9: Maintain Compliance and Renewals
| Compliance Item | Frequency |
|---|---|
| Income Tax Return | Annually |
| Sales Tax Return (FBR/Provincial) | Monthly |
| SECP Annual Return (Form A) | Annually |
| SECP Form 29 (Director Changes) | As needed |
| PEC License Renewal | Annually |
| Withholding Tax Statements | Monthly |
| Audit Reports (if applicable) | Annually |
| EOBI/Social Security | Monthly (if registered) |
Taxation Overview for Construction Companies
| Tax Type | Rate / Applicability |
|---|---|
| Corporate Tax | 29% (TY 2025) |
| Minimum Tax on Turnover (Section 113) | 1.25% |
| Sales Tax on Services (Works Contracts) | 13%–16% |
| Withholding Tax on Contracts (Section 153) | 4.5% (company) |
| Advance Tax (Section 147) | Quarterly |
| Workers’ Welfare Fund (WWF) | 2% (if taxable income exceeds Rs. 500,000) |
Conclusion
Registering a construction company in Pakistan involves company incorporation with SECP, tax registration with FBR, and sector-specific licensing from the Pakistan Engineering Council (PEC). Additional provincial and compliance registrations are necessary depending on your scale, type of work, and number of employees.
Whether you are entering building construction, infrastructure, or government contracts, proper legal setup ensures eligibility for tenders, banking facilities, and long-term growth in Pakistan’s expanding construction market.
