Real estate registration in Pakistan
What is Real Estate
Real estate is an industry that deals with property. It is a business of selling and purchasing properties. It credits this industry that the cities have developed a lot. Some specific laws and regulations are followed by each country and this is how each of the real estate industry differs from country to country.
In Pakistan, as stated by the government, the real estate industry has been emerging rapidly. There are civil engineers, architects, and a certain more skills that are required in this field. One of the major proofs that Pakistan is emerging in this industry is the development of lavish societies.
The people in Pakistan who work with real estate companies are termed as property advisors, real estate agents, or property dealers. Real estate registration Pakistan has some specific rules that are mandatory to be followed by everyone.
Requirements of real estate registration in Pakistan
As mentioned earlier, the laws of the real estate industry differ from country to country, Pakistan also has its own rules in this regard. As a real estate company in Pakistan, it is required for the real estate company must be registered before carrying out its functions. The people involved to work in a major role may get their certificate from the relevant authorities.
In Pakistan, the Real estate industry acts as the backbone of the economy. Real estate registration in Pakistan requires the company to have the hierarchy designed with:
- At least 2 directors.
- At least 2 shareholders.
- An authorized amount of capital worth Rs. 1 Lack.
- A physically present infrastructure as a work-station.
- The ID proofs of the designated directors.
Procedure of real estate registration in Pakistan
The procedure that is required to be followed by the real estate firm in Pakistan has the following steps:
- The designated directors of that specific company are required to get their SECP login credentials. This will ask for their contact information and a little information about them.
- Secondly the company name will be analyzed by the authorities. Security and Exchange Commission of Pakistan also known as the SECP will see if the decided name of the company is available or not.
- The third step is to apply for the company incorporation. In this step, the form needs to be filed on behalf of the company´s information like office location, people affiliated, capital information, and so on. This document shall be submitted along with the 4 documents that are:
- National identity cards of the designated directors.
- Article of association.
- The letter of name availability that is received by SECP.
- Memorandum of association.
- After these steps, the main step is to submit the application to the office of SECP for issuance of the company´s “registration certificate”. This will require the fee of the registration procedure.
- The Registrar may then give the time required to process the “incorporation certificate”. After the issuance of the incorporation certificate, the company is asked to:
- Start a bank account operating under the name of the company. This account is recommended to be in the commercial bank.
- The amount of paid-up capital is asked to be deposited in the designated director´s bank account.
- Then the auditor may provide the consent form for depositing the amount of paid-up capital.
- This consent shall be submitted to the office of SECP.
- Then finally the company can go to the Federal Board of Revenue. There, at the Regional Taxation Office, the company can get itself registered for taxes like:
- Income tax registration.
- Sales tax registration.
The mentioned procedure above is step-to-step guidance for any company that wants to work in the real estate industry of Pakistan. Generally stated, the worth of the real estate industry in Pakistan is around 4 billion, whereas the construction output lies around 2% of the overall GDP of the country.
The real estate companies in Pakistan account for a lion’s share in the GDP. The real estate registration in Pakistan is an easy procedure as explained above and the real estate company must get itself registered legally before any functioning. This is also to avoid the future consequences that are faced due to the illegalities.