Becoming a government contractor in Pakistan can be a profitable venture if you have the right qualifications and documentation. Government projects offer a steady stream of work and payment, making it an attractive option for those in the construction industry.

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In this article, we will outline the step-by-step process of becoming a government contractor in Pakistan.

How to become a government contractor in Pakistan?

Step 1: Choose the Department

The first step is to choose the department for which you want to take contracts. You can select from various options, such as local works, building works, or public health works. Once you have decided, visit the district office of the relevant department.

Step 2: Submit the Application

Submit an application to the district office of the relevant department for a license of the contractor on a simple paper. In this application, you need to specify the type of work you want to do as a contractor.

Step 3: Attach Required Documents

Attach the following documents with your application:

i. CNIC copy

ii. NTN Certificate

Explanation of NTN Certificate:

NTN stands for National Tax Number. It is a unique identification number used by businesses for tax purposes. To obtain an NTN Certificate, you need to register with the Federal Board of Revenue (FBR). The process of registration can be time-consuming, and it is recommended that you seek the help of a tax consultancy firm. Sindhcounts is a famous tax consultancy firm that can assist you in obtaining your NTN Certificate. You can directly contact Sindhcounts here.

iii. PST Registration Certificate

Explanation of PST Registration Certificate:

PST stands for Provincial Sales Tax. It is a tax imposed by the provincial governments on the sale of goods and services. The rate of tax varies from province to province. To obtain a PST Registration Certificate, you need to register with the relevant authority. For example, in Sindh, it is the Sindh Revenue Board (SRB), and in Punjab, it is the Punjab Revenue Authority (PRA). Sindhcounts is a famous tax consultancy firm that can help you with obtaining your PST certificate. You can directly contact Sindhcounts here.

iv. Documents of a qualified Civil engineer

v. Letterpad for your construction firm

vi. Bank statement with at least 15 lac rupees as your balance

vii. Optional: Copies of a work order as your experience viii. 2 Stamp papers for Rs 100 Each

Step 4: Document Verification

Once you have submitted your application with the required documents, the next step is to visit the Circle Office for document verification. This process ensures that all your documents are in order, and there are no discrepancies.

Step 5: Deposit 25 Thousand in Government Account

After document verification, you will receive a letter instructing you to deposit 25 thousand in the government account. This fee is mandatory and covers the cost of processing your application.

Step 6: Attach Payment Slip

Attach the payment slip with your application, proving that you have paid the fee.

Step 7: Receive Your License

After you have submitted the required documents, deposited the fee, and attached the payment slip, you will receive your license. With this license, you can bid on projects up to 15 million rupees.

In conclusion, becoming a government contractor in Pakistan requires you to follow a step-by-step process. You need to have the required qualifications and documentation, including an NTN Certificate, a PST Registration Certificate, a bank statement, and documents of a qualified Civil engineer. Sindhcounts is a famous tax consultancy firm that can help you with obtaining your NTN and PST certificates. Once you have submitted your application and paid the fee, you will receive your license, enabling you to bid on projects up to 15 million rupees. Good luck with your venture!