As India continues to grow and develop, more and more construction activities are taking place across the country. Are you planning to start a construction company? Then you’ve chosen a highly fertile market. However, it’s perfectly normal to feel overwhelmed since a lot goes into setting up a business.
This guide will detail out how to start a construction company in India.
1. Create a solid business plan
The very first step to starting your construction company is to formulate a solid business plan that details the vision, goals, budget, procurement of raw materials, target audience and location, and projects. This will ensure that your company is safe from unexpected losses in the future and is able to achieve its short-term and long-term objectives. You can either plan your way out, from the inventory to the site level, or plan your way in.
To come up with a solid business plan, run a thorough check of the market, know about the rules and regulations governing the construction sector, as well as the projects available in your target area in the upcoming years.
2. Get your company registered
The next step to start a construction company in India is to make it legal through registration. This is of utmost importance, as underlined in the Company’s Act of 2013. Your company needs to be registered with the Ministry of Corporate Affairs (MCA) as a public limited, private limited, partnership, sole proprietorship, or a limited liability partnership.
Once you have gathered the registration certificate, it’s time to get your Sales Tax and GST registration number. There are other documentation requirements such as PWD License, EPF registration, TIN No, and a company bank account.
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3. Build your workforce
Since your company will primarily be dependent upon its labour force, it is important that you hire reliable personnel that will help you build healthy relations in the community and attract new business clients. To hire good workers, establish connections with a network of brokers, subcontractors, mediators, or independent contractors. Maintain healthy relations with them as they will help you expand your company in the future. You can take a business loan to sustain a strong workforce.
4. Get the required funding
Any business in its fledgling stages requires large-scale investment. At any given time, there might crop up a sudden and unexpected need for money to meet cash flow or working capital requirements. The best and easiest way to fund your business is to apply for a business loan. You can use this finance to purchase new and advanced equipment, pay expenses associated with worker salaries, working capital, and more.
Before you apply, make sure to compare between lenders to secure the most competitive business loan interest rates.
5. Insure your business
An uninsured business is a risky business. To ensure you’re covered against any unforeseen losses, get your company as well as the hired labour force insured. You can find insurance coverage for losses induced by thefts, damages, accidents, the death of a worker, and more. Properly insuring your business will remove much of the stress associated with running it.
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Over to you
If you need a reliable lender to meet your business funding requirements, look no further than Tata Capital! Whether you need funds for expansion, inventory, working capital, or machinery, you can apply with us for a principal of up to Rs. 75 lakhs. In five easy steps, the amount will be transferred to your account. Check the eligibility requirements here or use our online business loan EMI calculator.