Establish a business plan
nature of the business,
business location
budget,
working capital requirements,
requirements related to equipment or raw materials
staff requirements
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.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.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.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.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.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.FAQs
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How do I start my own construction company?