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Learn how to start a construction company

by content gbafmag
Learn how to start a construction company

Have you ever thought about starting your own construction company but got stuck due toa lack of knowledge, then this article will be very useful for you. Here we have mentioned all the procedures so that it will be easier for you.


To start any company or business the first step is always to create a business plan because when it’s prepared well, that plan will guide in the right direction. Once you have figured out a plan it is easier to execute your goal,and the same goes for opening a construction company. You have to work a lot on your business plan and make sure that you come out with the best and the most suitable business plan because if you make any mistake here, you might not get a chance to correct it. It is the foundation of your business.


To open a construction company, you first need to know the area in which you would operate. There are the following categories:

  1. Residential area: This includes the places that you make for houses, apartments, cottages and more which are used as homes and made for people to live.
  2. Building: Building is the most common area in the construction and most construction companies prefer this. The building can be for any purpose.
  3. Industrial: These are basically for an industrial corporation such as medicine, power generation, and other industrial purposes.
  4. Commercial and institutional: These include clinics, hospitals, schools, colleges, shopping malls, cinema halls, etc. They are used for commercial purposes and mainly are constructed on a large scale.
  5. Highway: These are mainly constructed for road repairing, streets, alleys, highways, etc. It has incidental construction
  6. Heavy: These include the projects that can’t be categorized in the above categories such as the construction of sewage treatment facilities, river dams, sewage lines, etc.

Determine the type of company that you have the capabilities for, and then register accordingly:

The next step is to determine the type of construction company that you want to open, you can choose from the following types of construction companies.

  1. Civil engineering company
  2. General constructors
  3. Heavy engineering and construction
  4. Industrial infrastructure companies

Minimum requirements to register a private limited company in India. This will vary in other countries. Check the registering processes of your country of operation.

  1. It should have a minimum of 2 people and a maximum of 200 people.
  2. It must have one resident director.
  3. The name of the company should be distinctive.

The procedure is as follows:

  • Digital Signature of Director as DSC is the equivalent of physical or paper certificates in digital format.
  • Director identification number: It is a permanent number issued by the registrar of companies.
  • Name approval of company: Name of each company or LLP must be unique, new and should not be the same or similar to an already registered company, LLP or a Trademark.
  • MOA & AOA of Company Memorandum of Association (MOA): The promoters need to adopt and sign MOA & AOA, which is then filed with the ROC.
  • Company cncorporation: The certificate of incorporation is proof of the registration of the company.
  • PAN, TAN & Bank Account

Obtain the required licenses to open your construction company:

You will also need to check the local government or state government polices to know the licenses that are required to work as a legal construction company in a particular region, as this may vary. While you are in the planning stage, you need to see the various policies and which state can be most profitable to you and then you should choose the location according to that. For example, a tradesman license is required for some of the construction services such as plumbing.

Get your insurance right:

There are plenty of insurances available for construction companies as the likelihood of accidents that might take place at a construction site are high. Due to this your insurance policy becomes very essential. Compare the policies of different companies as well as the benefits that they provide and then select accordingly. Every single project must be insured and you can look for different things such as natural disasters, employee benefits, material costs and more.

Make a  marketing plan and promote your company:

It is a very important step as this will decide if you can survive and if you would be able to make profits. It’s also possible to hire a company for marketing as they have the expertise in this field and that can help you make more profits. It’s important to make sure that you are using the appropriate platforms for your audience such as digital marketing, social media marketing as well as the other conventional methods of marketing which included newspaper advertisements, television advertisements, and radio.To decide which platform is best for you, you need  to find out which platforms your target audience would be using.

Remember, there are many procedures that need to be followed to form a construction company and these will differ across different regions.  To ensure you meet all the legal formalities and avoid inconveniences and costs in the future, make sure you check the regulations in your local area.

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