Whether it’s urbanisation or technology, we live in an age of growth. The world is moving towards being more urban and concrete, including Kerala. As the state enters an era of infrastructure development, the construction company is expected to prosper and develop in the following years. Viewing this economic growth of the construction businesses, many business owners and entrepreneurs are excited to enter the construction industry.

The construction company in Kerala comes in third among the 14 key industries in terms of the direct, indirect, and induced effects on every sector of the economy. Growth opportunities are good in the construction industry. The important components for growth will be enhancing brand recognition and customer happiness. 

What is Construction Company?

To build different structures, developments, properties, facilities, houses, paths, pavement, roads, motorways, and other construction projects, a form of company, enterprise, or similar organisation was developed. In many countries around the world, construction companies are established and run. A construction company is a large multitasking organisation, not a single unit that performs a single role. 

Why is a Construction Company in Kerala Worth to Start?

Due to the rising urbanisation and technological advancements, there is an increase in the demand for construction. So much so that, if growth keeps up its current rate, the construction companies of the country and infrastructure sector are expected to increase by 15.7% in terms of compound annual growth and reach $738 billion by the year 2022. Currently, the construction industry controls 55% of the Indian steel, 30% of the glass, and 15% of the paint industry. 

The company has shown a strong upward tendency in growth in the past, with growth rates of an average of 2.9% between 2011 and 2015 and 5.6% between 2016 and 2020, respectively. This serves as a stimulant for the construction company, along with the rising need for construction to advance the development of our country. 

Many business owners believe that the construction companies in Kerala will continue to grow profitably in the years to come as a result of its significant upward trajectory.  

Steps to Register Your Construction Company

Before starting any company you must go through the process of company registration to register your company and obtain the certificate of incorporation. Here are some steps that you need to follow for registering your construction company. 

Step 1. Get a Digital Signature Certificate (DSC).

Step 2. Getting Director Identification Number (DIN) for proposed Directors.

Step 3. Submitting an application to reserve the name of the proposed company

Step 4. Memorandum of Association, Articles of Association, Declarations, Affidavits and other documents preparation.   

Step 5. Filing the incorporation form and the company’s PAN and TAN applications together.

Step 6. Make payment for the registration application together with stamp duty based on the proposed company’s authorised capital and the cost of PAN and TAN.  

Step 7. Obtain a Certificate of Incorporation 

Documents Needed for Starting a Construction Company

• A drafted business plan for the construction industry
• Candidate’s ID proof: Driver’s License, voter IDAadhaar card of the applicant 
• Applicant’s Adhaar card
• Evidence of address Bill for amenities, such as power or water
• Recent passport-size photo of the applicant
• PAN card of the business registered
• Certificate of Establishment of Construction Company
• Applicant’s business bank statement (last 12 months) 
• Certificate copy of GST registration
• Rent agreement document 

Factors to Consider While Starting a Construction Company in Kerala

Although the construction company appears to be brimming with job and investment opportunities, it also has its fair amount of obstacles. As a result, any entrepreneur starting their own construction Company should keep the following points in mind. 

1. Check your license and permit situation

Before establishing a construction company, the individual must obtain a permit or license for the business, which serves as a certification to operate a construction company and purchase the necessary equipment/tools. A permit/licence may be obtained from the council office by the entrepreneur.  

2. Find a place for the company’s office

Every company needs a central location where all planning and strategies can take place. The same is true for a construction business, where the owner should choose a central location for the company office, which serves as the place where customers can contact the company.  

3. Obtaining construction equipment

It would be easier for companies to buy construction equipment after they have their business licence. The tools needed for office work can be considered additional tools.

4. Deciding on starting budget

This is crucial for new business owners because it prevents the unanticipated loss that frequently happens to new companies by confirming one’s financial goals and expenses.

How to Start a Construction Company in Kerala? 

Starting a construction company in Kerala involves a lot of factors. Let’s examine each of them: 

1. Business Plan

Effective planning is one aspect that all kinds of businesses have in common. A well-planned business is resistant to unforeseen losses. Therefore, the first step in starting a new construction company is creating a plan outlining the budget, objectives, financial terms, collection of raw materials, equipment, projects, target clients and expenses for a specific period of time.       

2. Conduct thorough research

When starting a new Company, it is always prudent to be aware of what one is getting into. The business owner should conduct a thorough background investigation and market analysis. 

The next step should be to have a detailed knowledge of the rules and regulations that govern the construction company as well as the kinds of sites and projects that are accessible nearby. This will aid in developing a more effective financial plan.   

3. Company registration 

The next step is to formally register your construction company. According to the Company Act of 2013, a new construction company in Kerala must register with the Ministry of Corporate Affairs (MCA).

4. Build workforce for business 

The business owner can start hiring employees and workers once the company has been registered. This is crucial for the owner of the construction company because hiring a strong workforce will foster positive community relations and attract a wide range of new customers. 

5. Partnership with a transport company

Any construction business needs transport vehicles. The business owner can look for a legal partnership with a reliable transportation provider that can be used to get vehicles as needed. 

6. Insurance 

These days, insurance is a crucial component of a business. For a construction company, it is important to get insurance for expensive tools and equipment, as well as construction equipment or manpower. 

Conclusion 

Although starting a construction company in Kerala requires some effort, the rewards are well worth it. Before you start a construction business, you must complete all of the steps and deal with any complications that arise.

Registering your construction company is also important hence if you find any difficulty or want to register your company hassle-free our experts of Online Legal India will help you in the registration process and guide you throughout.