How to Start New Construction Company in India


How to Start Construction Company in India


Our Prime Minister is giving a lot of emphasis on infrastructure these days, due to which the infrastructure in India is growing rapidly, which is good for the development of our country because it will give employment to many people in India. In India, construction business is growing rapidly because of increasing infrastructure in India. Many Construction Companies are making good money because of increasing support in India. If you want to start a business of construction, then you have to do proper planning for your business and have to follow the rules and regulation and have to complete some legal registration.This article talks about the Starting a business of Construction in India.

How to Start Construction Business in India

  • The first thing you have to do is Market Research, and it is a very important thing for starting any business because without Market Research you may have to face some problems in the future. Market Research is important because, after the research, you will find the hot trend of the market, you will know about your competitor, and you can decide your price according to Market Research, this will help you during tender filing.
  • After the Research you have to make a plan for each and everything for your Construction Business and have to execute the plan. Good planning needed for the Construction Business because it is not an easy task; it required lots of energy, Capital, and team efforts, so you have to make a good plan. So after Market Research, you have to make a plan according to your Market Research.
  • Construction Business requires a lot of capital so you have to invite the investor or you can get a loan from the Bank. Capital is a primary thing for starting any business so you need an investor or you have to apply for the credit.
  • Insurance is required for a Construction Business because it is a very risky business because you are investing a lot in business and people engaging in Construction Work are taking the risk while Construction of Buildings so insurance is required for your Business.
  • You have to incorporate your Business as a legal entity for which you have to register your Business as a Private Limited Company/ Partnership Firm/ Sole Proprietorship Firm/ Limited Liability Partnership Firm/ One Person Company. It will give you legal rights and protection under the Laws.
  • After Incorporation of Certificate, you have to do important legal registration like PAN and TAN, GST Registration. This Registration is required by laws.
  • Udyog Aadhar Registration is also important to document because it will help you in many ways, you will get a loan on low-interest rates, and you will get a subsidy from the Government Schemes.

One Person Company

If you are thinking of Starting a Business of Construction and if you are the only owner of your business then you can incorporate your business as One Person Company. One Person Company can be incorporated by one person. It can be incorporated with the minimum capital of 1 lakh rupees. It has many benefits e.g. Separate legal entity, and it is a separate legal entity which can sue or can be sued. It has perpetual succession; an owner can nominate a nominee so in case of disablement of owner nominee person will become an owner of the company. If you want to incorporate your Business as One Person Company then you has to follow the procedure of Ministry of Corporate Affairs, you can get your registration through online mode. After incorporation of One Person Company you will get protection under the Companies law, and after incorporation, you have to comply with the rules and regulation of Registrar of Companies.

Limited Liability Partnership

If you are two or more person in your Construction Business then you can incorporate your Business as Limited Liability Partnership Registration (LLP). LLP is governed by the LLP act and it is regulated by the Ministry of Corporate Affairs. Every year you have to comply with the Registrar of Companies, but if we compare to Private Limited Company, then LLP requires fewer compliances. LLP is a separate legal entity which is separate from its partners; there is a limited liability on the partners. If you want to incorporate your Business as LLP then you have to follow the procedure of Ministry of Corporate affairs, you can incorporate your business through online mode. The procedure of Online Company Registration is easy and simple and after incorporation of LLP, you have to submit your LLP agreement to the Registrar of Companies.


As you can see in this article that Registration of your Construction Business is important, it will give you protection under the laws. You can choose the LLP or OPC for your business; both are simple to incorporate. You should consider the legal registration.