To construct and to develop should be the primary tendency of every single folk, and so of the countries. Pakistan is one of those countries whose most dependency is on real estate. Real estate deals with land, property, construction, etc. The real estate business plays a vital role in the economic growth of Pakistan. Almost 250 organizations are concerned with the real estate industry.
How to become part of the Real estate industry in Pakistan:
Now, how to be part of this structure? The answer is quite vivid. As there is an expert needed for every field of life to gain fruitful results. So the real estate agent or property advisor is the person who deals in these matters. He, a real estate agent, is a person who brings buyer and seller together for a business deal and gets his/her commission from either side.
The rate of the commission may be defined at the time of the deal or it may be constant. Though 1% of the whole transaction from one side is charged. Sometimes there may be involved two agents so the agent on the buyer side charges commission on the buyer and the agent on the seller side charges commission on the seller party.
The agent also does paperwork for both parties. It needs quite an expanse of experience because the loss and profit ratio of shareholders or owners all depends on the dealing of that particular property dealer. And also the agent should have authority from Govt. of Pakistan before laying a hand in such infrastructure. The property dealer may work alone or in form of a joint company. To run their organization or company lawfully they must have a license authorized from the concerned department.
Registration for Real Estate Business in Pakistan:
Certain rules are to be followed for the registration of a real estate business. Govt. of Pakistan lays down some specific rules under which the real estate industry should maintain its transits because real estate business cannot be undergone without the permission of the government.
The requirements for registration:
There must be one hundred thousand (100000) rupees as capital.
Two directors and two shareholders (with all their documents)
The registration process is similar to any other company to register in Pakistan.
Steps for Registration:
- The directors being part of the company must provide their personal information, cell number, Email to SECP.
- The business must have approval from SECP securities and exchange commission of Pakistan) about the name.
- To fill in Form II which contains all detail about company office location, details about directors, capital of the company, and the following documents must be attached with Form II.
- Name availability letter
- Memorandum of association
- Articles of association
- CNIC copies of directors
When all these documents get attached to form II, submit the Application to SECP to get an issuance certificate. And the fee depends on the capital of the company. If the capital is high the tax and fee will be high and vice versa.
- After this, the registrar would examine all the documents and would issue the certificate if he finds no error. In another case, the whole process can be recalled.
- When registrar issues the certificate, then the following steps should be followed.
- A bank account is needed to be opened in any commercial bank of Pakistan for the ease of transaction. It may also help in security which every business requires at the time of essence.
- The amount should be deposited in account as per capital decided in time of registration.
- An Auditor’s consent is needed for SCEP office for further approval. And that should be submitted to the office. The Auditor would examine the whole proposal and then would give statement about to be given or not the surety of license.
But the registration does not stop here. After the registration with SCEP the real estate business is needed to affiliate it with federal board of revenue. Now, after registration it became the lawful part of Pakistan economics, so must it have to pay tax.
After this complete process the real estate business now have the authority to deal in selling and buying services of properties. After having the license, it has no restriction of being in limits. The property dealers in Pakistan cover a large area of market. And may earn a handsome profit. The property dealing companies though pay tax to governments but they are also being given subsidies about 30 billion to promote the business in Pakistan.
This article was about the procedure of how to get a license of being in the business of the real estate. First, I glanced some light on the importance and contribution of real estate business to the economy of Pakistan. Then, I briefly discussed the property dealer or real estate agent’s work and the way how they deal. Then I wrote every step which leads to getting the issuance of an authorization letter for the real estate business. And also wrote some detail about the assistance of the government in the real estate business.
M Junaid Lead Writer, Content Marketer at Sigma Properties | Capital Smart City, A writer by Day and reader by night