Sole Proprietor, Partnership or Private Limited: Choosing a Structure for Your Construction Firm

01The three common structures

• Sole proprietorship — one owner, the simplest start.
• Partnership or association of persons (AOP) — two or more partners under a registered deed that FBR and PEC will later ask to see.
• Private limited, single-member or LLP — incorporated with SECP, with a certificate, memorandum and articles.

02Why it matters for PEC

Your licence, NTN and bank title all have to tell the same story about who the firm is. That is what a procuring agency checks first. Some contractors also find their category plans need a company structure.

03Consulting firms are different

For consulting engineering firms, PEC bye-laws require at least 51% professional-engineer ownership for partnerships and private companies, with limited exceptions. Check the ownership split before choosing a structure.

04Changing structure later

1. 01Complete the SECP incorporation or the partnership deed first
2. 02File the firm-type amendment on PEC
3. 03Align the NTN and bank title afterwards

The PEC piece of a type change often takes a few weeks; the SECP piece runs on its own clock and has to finish first.