Real Estate and Construction Company Registration
An announcement was made by the federal government regarding tax amnesty related to construction sector which is aimed to encourage investors and builders to build housing schemes resulting to boost up the economic activities in the country. It may not be specifically helpful for people who are not in financial strength but could be a great advantage for those who are better off. Therefore, it’s a time to take a step in the real estate and construction businesses and take our best services in this regard.
Before discussing the registration process of real estate and construction companies in Pakistan it is vital to grasp the background of real estate and construction companies.
Real Estate and Construction business is one of the leading, self-motivated and dynamic in Lahore as well as all over the Pakistan which has achieved the value of industry in Pakistan as per the statement of Prime minister of Pakistan also.
The Real Estate and Construction Business generally treats with
- land,
- commercials which have transformed from unproductive or farms into societies and cities
- residential
Service Info
Skills
Buffing, Mopping, Dusting
Client
John Dibag
Skills
Buffing, Mopping, Dusting
Client
John Dibag
Set of Laws
In whole of the world, the purchase, sale, ownership, and lease of all these properties is governed by the particular set of laws under the constitutional acts:
- The Registration Act 1908,
- The Land Revenue Act 1967,
- Transfer of Property Act 1882.
In Pakistan, the real estate issues that people normally facing with are transferred to Property advisors or Property dealers.
Property Advisors or Dealers
Property Dealers normally take their commission against the services they provide from both the parties. In Lahore, people mostly have dealing with the construction industry, People who work that is based on their provided services on the construction projects are usually called contractors in Pakistan.
Here are some of the principles those are needed to be discussed before initiating the process of registration.
Registration Rules for Real Estate and Construction Business
A business involving construction of Properties carried out either in Lahore or any other city in Pakistan is highly dynamic and productive in nature if it is a registered business which entitles the Construction industry a reliable and fool-proof.
The Rules state:
- Without having registration of your business of Real Estate and Construction wherever carried out, no one is allowed to run their business.
- ‘A person meaning to engage within the property business is required to have a valid certificate from the respective authority permitting him to do so’.
- ‘Wherever a person wish to run his business, the registering authority would be the SECP, FBR, EOBI, and Excise and Taxation departments’.
Let’s begin towards the process of registration. Here is the eligibility criteria for getting registered as Real Estate and Construction Company in Lahore, Pakistan.
Eligibility criteria
For imitating the process of registration, it is necessary to fall within this criterion as listed below;
- There should be minimum number of two Directors.
- There should be minimum number of two Shareholders.
- The amount of minimum capital is to be of rupees one hundred thousand (Authorized Capital)
- It should contain Pakistani address for registered office
- Address and Identity proof for the Directors is mandatory.
Below is the overview of eligibility criteria diagrammatically is as under;
Overview of criteria of Real Estate And Construction Company
01
Minimum 2 Directors
02
Minimum 3-Shareholders
03
Minimum 3-Shareholders
04
Proof of identity and address for directors is necessary
05
Pakistani address for registered office
Process of Registration for Real Estate and Construction Company
The process of registration for the Real Estate and Construction Business is alike to the registration process of other related companies incorporated in Lahore as well as all around the Pakistan as a Private Limited Company.
The steps involved in registration are listed below;
- SECP login creation
- Name Reservation
- Documents Submission
- Company registration
- Business commencement
Here is the overview of process of registration of both;
Create SECP login by providing personal information, mobile number and Email address.
Create SECP login by providing personal information, mobile number and Email address.
Submit Fom-2 and requisite documents together with MOA, AOA and pay the Challan Fee.
If all documents are in order and no mistake is found then Registrar issues incorporation certificate.
After getting registered you have to open a bank account and deposit paid up capital. Also take consent of Auditor and submit it in SECP together with Bank slip.
Below is the detailed discussion about each step involved in registration of Real Estate and Construction Company:
1- SECP Login Creation
All the Directors of the Company make their Log-in in SECP by giving their Personal details, Mobile Number and Email etc
2- Name Reservation
The Real Estate and Construction Business has to apply for the availability of name whose endorsement given by SECP (Securities and Exchange Commission of Pakistan).
3- Documents Submission
Fill the Form II (Application for Company Incorporation), that includes:
- Particulars of directors;
- location,
- Authorized Capital
- Identification of office
- Paid up Capital of Company
On filling out the Form-II, the below mentioned necessary documents must be attached along with Application;
- Memorandum of Association
- Articles of Association
- Name Availability Letter
- CNIC Copies of Directors
After enclosing the above documents, now submit the application in SECP for having the Certificate of Registration. Fee for Company Registration is paid as per the Authorized Capital.
4- Company Registration
If no discrepancy would be found in furnished documents, then the Registrar will issue the Certificate of Incorporation.
5- Business Commencement
On receiving the Certificate of Incorporation, comply the below mentioned formalities;
- Opening of a Bank Account in any Commercial Bank in Pakistan
- Deposit the amount of paid-up capital as per shareholding of directors in Bank Account
- Take approval from an Auditor regarding the deposit of Paid up Capital in Bank and furnish that approval in SECP.
Normally your efforts for your company results in your business expansion and growth but selecting the sort of company is the basic stage to initiate a Business.
Formation of company is comparatively stressed free that provides the advantages as follows:
- This Business offers a greater return on the investment than the stock market and allows more control on the contributed amount of investment as the property is a kind of tangible asset that can be controlled to gain the most out of investment on different stages of income.
- This Business involves a great tangible asset value – There would be a value by all the time in the built home and land. Having a comparison in this value of land and structured home with the value Motor vehicles and Stocks then the built projects and real estate will always provide you greater return on investment.
- The value of Construction and real Projects always enhances with the passage of time. The history of Construction companies and real Estate prove it that “Holding is a power, more you hold you get the benefit”.
- Investments in Construction companies and Real Estate projects provide a diversification in the portfolio- This diversification minimizes the risk of losing investments specially when someone has an experience of dealing with these types of diversified investments.
- On registering the Company, Directors’ Personal liability would be limited up to the extent of their shareholding in the company, however, if the Company involved in selling of unlawful projects in the market then they can be held personally liable for that acts of Company.
- By getting the Registration of your company, your business status and brand image improve in the eyes of competitors. Mostly International companies or parties transact with the registered companies due to credibility concerns and trust.
- Producing capital for company is quite simple in comparison with other categories of businesses in Pakistan. Investment in a company gives a safe emotion to the investors because in response to their investment, company usually provides shares up to the extent of their amount of investment.
- Perpetual Succession- Company always remain in existence forever even if the shareholders of the company, Directors joined, resigned or died until wound up through the provision of law.
Note:
After having Registration of Real Estate and Construction Company with SECP, the Company must then register for Income Tax and Sales Tax at the Regional Taxation Office of the Federal Board of Revenue.