In an era of lightning speed advancements accelerated by technology and urbanization, there is an evident shift towards a concrete urban setup in India. As the country witnesses faster infrastructural development, construction companies are thriving and expected to grow exponentially in the near future. Considering this economic trend, entrepreneurs are considering forays into the construction business to make the most of the profit-making trend.

How to start a construction company in India?

Here are some expert-collated smart tips that entrepreneurs can use to easily start their own construction company in the country:

  1. Establish a business plan

A well-drafted business plan can go a long way in establishing a sound construction business from a long-term perspective. This should include all the business details. The business plan can contain information such as:

  1. nature of the business, 

  2. business location

  3. budget, 

  4. working capital requirements, 

  5. requirements related to equipment or raw materials 

  6. staff requirements

The plan should also cover capital and inventory-related information apart from planning techniques, marketing strategies, customer base, etc.

  1. Research

Business owners should conduct a detailed research about the market to further analyse the demand for construction within the targeted locality or area. The rules and regulations surrounding construction businesses may vary across states. It is important to note that construction requirements are often area-specific and are dependent on the property type like commercial or residential. Some areas may require more new houses to be constructed while some may need construction of mostly commercial projects like office spaces, malls, etc. Some properties may only require renovation or refurbishment.

  1. Register the company

Ensuring business legality by getting it registered is one of the most crucial steps while starting a construction business. A construction business must be registered under India’s Company’s Act 2013. This registration is done with the Ministry of Corporate Affairs (MCA) and the company can be established as a private limited or public limited company. There is also the option to legalise the business as proprietorship, partnership firm, or Limited Liability Partnership (LLP). Upon receipt of the company registration certificate, a business owner must apply for GST and Sales Tax registration number. Some of the other documentation requirements include TIN No, PWD License, bank account opened under company’s name, EPF registration in case a company plans to hire more than 20 individuals.

  1. Set up a business network and hire talent

Entrepreneurs running a construction company must develop strong business relationships along with a powerful network in association with contractors, suppliers, builders, partners and property dealers. This can help them grow and expand their business faster. These entities can help construction company owners to expand their businesses.

Construction companies tend to have a lot of dependency on labourers or workers. Such workforce can be employed by construction companies through brokers, subcontractors, agents and independent contractors. 

  1. Invest in logistics

Logistics is critical for a construction business since it is frequently used for supplying equipment and raw materials across different construction sites. Business owners can therefore decide on either hiring vehicles from a transport company through a contract or investing in vehicles for running the business smoothly.

  1. Consider insurance

To avoid any form of risks and losses in the business, it is important to consider having insurance for the company. Business owners can also consider insuring the hired workforce. Through an insurance cover, the company can get any accidents, damages, repairs, death, etc insured. The indemnity of business and workforce takes away a majority of the stress that would otherwise remain on the business owner’s mind.

  1. Gathering funds

Running a construction company can require large-scale investment. Therefore, during the company’s business tenure, there can be many instances requiring cash for various working capital requirements. To overcome any financial or cash crunch situations, construction business owners can borrow business loans from established financial institutions. Some of the loans that can be availed include business loans, term loans, working capital loans, equipment loans, letters of credit, etc.

Documents are required for starting a construction company in India

Some of the commonly required documents for starting a construction company in India include:

  • Application form 
  • Passport-size photographs
  • Business plan
  • Applicant’s identity proof 
  • Aadhaar card of the applicant
  • Business PAN card
  • Establishment certificate of the company
  • Bank statements of past 12 months
  • GST Registration copy
  • Copy of rent agreement


India continues to see fast-paced infrastructure development due to rising urbanisation. This results in large-scale construction work across the country. As the demand for construction is slated to grow over the next few decades, businessmen can fetch higher profitability from this business segment.


  1. How do I start my own construction company?

You can start your own construction company by beginning with a business plan, arranging for the required finances, making the relevant applications, hiring a workforce, and ensuring all documentation is in place.

  1. Is it possible to start a construction company?

Yes, you can start a construction company if you have a clear business plan and near to long term approach. 

  1. How much does a construction company cost in India?

Depending on the scale of operations, a construction company in India may require from Rs. 1 crore to 50 crores while starting.

  1. Is the construction business profitable in India?

A construction business can be profitable in India if it is set up on a concrete business plan and backed by the right amount of finances.

  1. What is the best business in India?

There are many profitable businesses in India, one of which is the construction industry which is picking pace due to rapid infrastructural development.

  1. What are the disadvantages of construction?

One of the biggest disadvantages of the construction business is capital being blocked for a longer period due to delays in occupancy and high construction costs.

  1. Can I start a construction company with no experience?

You can start a construction company with no experience; however, you will have to reflect sufficient skill and expertise to financers while seeking funds from banks and lenders.