How to Start and Register a Construction Company in Jaipur, India

How to Start and Register a Construction Company in Jaipur, India

How to start and register a Construction Company in Jaipur, India

Construction industry is one of the top industries for the start-ups as in however it is also having one of the highest rates of failure. As 63.6% of construction companies close within the just five years, whether due to lack of business knowledge and experiences, even lack of planning. 

You don’t have to be ONE of them!

During the past we all have seen many ups and downs with the construction companies. But nevertheless, the industry has demand and with demand comes timely GROWTH.  

Here, comes the role of the Chartered Accountant firm to tell you about the right business direction to walk -in. It can help you avoid the pitfalls that so many new construction companies run into. 

So, where do we start together? 

It is also very important aspect from the growth perspective as one must probably be ascertained whether he/she wants to be the next big general contractor in their local area or looking forward to stand alone. In other words, a successful small business construction company in a specific niche market.   

In this blog, we have to focus on how to start a construction company like researching your market, drafting a plan that how you have a strong foundation to grow your business on and many more aspects to work through. 

A well-established construction company could be formed and the business can be well started both in the government and private sector. Like the construction business with the government projects can be done by procuring the government projects through the website of the State government or say Central government. 

What are the methods to start with Construction Company in India 

One can go with the following legal business structures that could be suitable for the construction business depending upon the amount of money dully invested in:

  • Partnership Firm
  • Sole Proprietorship Firm 
  • Private Limited Company 
  • Limited Liability Partnership 
  • Public Limited Company 

Alonika in Jaipur can assist you in the registering of your construction business with any of the entities. As moreover we would first, recommend you to register your construction business as a ‘Private Limited Company’ as it is the most popular form of doing business as it comprises of certain advantages like easy to register, limited liability, separate legal entity, etc. 

Know More: What are the Legal Requirements for Company Registration in Jaipur?

In India, the minimum requirements for forming a private limited company in the construction industry are as follows:

  • Minimum two persons as Shareholders
  • Minimum two persons as the Directors and Maximum Fifteen 
  • In case of any type of foreign entity or individuals opting to incorporate Private Limited Company as a Private Limited Company then minimum one director shall be Indian resident.
  • No mandated Capital Requirement 
  • Director Signature of the Subscriber and Directors 
  • Director Identification Number 


Worry not for anything that all are mentioned above. Alonika the Chartered Accountant Firm will help you in getting all the same in proper and manageable way. 

And it absolutely depends upon you to decide that with whom you want to associate the post of Director or the person investing in your firm shall be the Member – with how much shares. In this blog, we will share with you the knowledge on the process of registration of construction nosiness under the term ‘Private Limited Company’. 

 The techniques for forming a private limited company for the construction industry is as follows.

  • About the ‘Name’ of the Company – One should be able to select the name that signifies the core business area. 
  • The name should be original, distinct, and memorable, and should not be confused with the name of another company. Alonika, can help you to choose the best name for your construction business.
  • Even we will file an online application of the name to the Ministry of Corporate Affairs (MCA) that you have selected for your business. As it secures it for a period of 20 long days before filing the application for registering the company so that nobody else can use it. Behind the curtains we’ll start with the application process for registration. 

       Note: the same above mentioned process goes for this one as well. 

  • Submission of documents – For a better understanding, we’ll offer a questionnaire that asks for papers and analyses the type of job you do, pointing you in the right direction. And there are certain documents required for registering your construction company: 
  1. Identity Proof – PAN card of the members and directors of the Proposed Construction Company, Passport in Case of Foreign Nationals
  2. Address Proof – the member and directors (Utility Bill/ Telephone Bill/ Mobile Bill/ Bank Statement not older than two months duration.
  3. Latest Passport Size Photographs
  4. Business Address Proof 
  5. Owned Property – Copy of Registry and Latest Govt. Electricity Bill or Water Bill, Rented/ Leased Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill


In case of NRI or say foreign national documents of Directors and subscribers must affix a legal signature. 

Drafting the documents 

We will draught your charter documents, i.e. Memorandum of Association and Articles of Association, keeping in mind the core work of the construction company and the areas in which it may expand in the future. Remember, the Company can only carry out those activities that are mentioned in its ‘charter documents’.

Know More: Digital Signature Certificate, Advantages and Uses

Document Submission 

We will submit your application for company registration in SPICE+, which will include a mandatory legal need of certification from the Company Secretary or Chartered Accountant. Along with SPICE+, the Memorandum of Association and Articles of Association must be filed online via SPICE e-MoA and SPICE e-Articles of Association.

Additional Relaxation 

The Ministry of Corporate Affairs has also provided a special facility for mandating of opening of Bank Account in your preferred bank. The registration under ESIC and EPFO provided an option to apply for the GST number in another eForm called as AGILE-PRO. 

Know More: Annual Compliance for Startups – Checklist for Startups

Construction Company Registration 

The Registrar will release the Incorporation Certificate showing that your company have registered by entertaining the legal terms. After the field application is approved, by the Registrar. A list of Legal Documents that a Construction Company gets after the Registration from Alonika – CA Firm (Jaipur) are as follows: 

  • GST Registration Certificate, if applied
  • Name Approval Letter 
  • ESIC Registration Certificate 
  • Opening of new Bank Account 
  • PAN and TAN certificate 
  • DIN of two Directors
  • EPFO Registration Certificate
  • Certificate Incorporation 
  • Digital Signature Certificate
  • Memorandum of Association and Articles of Association

Enrolment with BIG Known Construction Houses 

In the beginning for starting the business the construction work enrolment with the different Limited companies is very important. These companies is important because they help in providing you construction work as per the profile of your company which can be initiated with a small amount of work. 

Establish the profile for a construction company

The construction firm profile is a key component of bid documents as well as general communications materials such as corporate brochures, websites, and annual reports. In addition to the basics like physical address and year of establishment.

The information that defines the type of work that the firm does, its capabilities, resources, and financial stability should all be included in an effective construction company’s profile. The length of the profile should be between 300 and 400 words. In this, Alonika may assist you in creating and establishing your construction company’s profile.

Do look for Project Manager, lodging of quotation for the project work, Issue of work order by a company, Acceptance of Work Order, even Starting of Construction work. From all of these above-mentioned aspects searching for the Project Manager is very important for getting the work completed by booking an appointment with him/her for a meeting. And the last thing one needs to do is submitting your ‘profile’. 

If the meeting goes well, you must send the project quotation to the project manager, which must be signed by a company officer. If the other company is satisfied with your profile and the quotation you supplied, it will send a work order including all of the payment and scope of work terms and conditions. As a result, it is recommended that you read it carefully. If the work order appears to be a good fit, you can accept it by submitting an acceptance letter to the company.

Finally, invoices must be given after the task is completed According to the CA firm in Jaipur there are various statutory returns to be filed with the Income Tax Department as specified under the Income Tax Act, 1961 and also under the GST Act.