How To Start A Construction Company In India?

Want to start a construction company ? Here are top tips on how to start a construction business in India. Read Now to know more!

23 Nov,2022 18:03 IST 4008
How To Start A Construction Company In India?

India is the land of businesses. However, with many business ideas, it is confusing to choose the type of business in high demand that can provide the best revenue and profits. In the last few years, entrepreneurs have shifted their focus to construction companies as the infrastructure market is growing. If you want to start a business, consider beginning a construction company in India.

Why Should You Start A Construction Company?

India is the largest economy among all the developing countries, with a forecast to be the third-largest economy worldwide in the coming years. The credit towards most of the growth in the Indian economy goes to the Indian government’s investment in developing adequate infrastructure.

The construction and infrastructure sector is expected to grow by 15.7% CAGR to reach $738 billion by the end of 2022. Construction businesses have shown steady and positive growth in recent years, and starting a construction company is a viable profit-making business in the current scenario.

How To Start A Construction Company In India

Starting a construction company is similar to starting any other business in India. However, as construction companies may need a huge capital to execute the operations, you must ensure that all the aspects of the business are covered effectively. Here are the steps you must consider to start a successful construction company in India:

• Draft A Plan

Create an extensive business plan before starting operations, which includes everything related to your business model.

Planning creates a blueprint that will allow you to ensure that all the aspects of the construction business are taken care of through engaging in different activities. Once you have created an extensive plan, you can use it as a rulebook to understand the action you should undertake until you can start operations.

• Obtain The License and Registration

Every business has different guidelines created by the Indian government and the respective department to ensure transparency. Before commencing operations, performing extensive research or consulting an expert to register the company and acquire all the necessary certificates and permits is essential.

If you are unsuccessful, the construction company will be considered illegal by the authorities, which may create problems in the future, forcing your company to shut down operations.

• Setup The Infrastructure

A construction company is heavy on infrastructure, requiring an office that can showcase its future models and have adequate technology to plan and strategise. Furthermore, every business must have at least a registered office to run operations legally. Hence, you should ensure that you scout for a place to either make or rent an office and register it as the company’s registered office.

• Hire Staff

Staffing is vital while starting a construction company, as you will need skilled and qualified workers in the same construction field. You will also need experienced employees to plan and construct the model for infrastructure projects and oversee the execution by the construction workers.

Investing effectively in this step and hiring the best employees is better as quality work is the most important to get further projects and increase goodwill.

• Initial Capital

The most crucial step for every business is ensuring it has enough capital to invest in all the necessary operational activities. If your business falls short while executing the business plan, the company may miss the operating step.

The best way to ensure adequate business financing is by applying for small business loans for a construction company. Such business loans for a construction company can allow you to raise immediate capital and ensure your construction business’s success.

What Are Business Loans For Construction Companies?

Business financing through a business loan for a construction company helps entrepreneurs raise immediate capital to cover numerous business activities, including rent, employee salaries, working capital, expansion, and marketing.

These loans do not require pledging an asset as collateral, and applicants can receive the amount within 48 hours. This way, they can avoid using their savings or investments and fund company activities effectively.

However, like other types of loans, you must repay the principal amount with interest within the loan tenure. Hence, for an entrepreneur looking to start a construction company, taking a small business loan for a construction company is ideal for catering to all the business aspects.

Avail Of Ideal Business Financing From IIFL Finance

IIFL Finance offers varying financial services, including customised and comprehensive business loans to start a construction business in India. Through IIFL Finance loans for construction businesses, you can get instant funds up to Rs 30 lakh with a quick disbursal process online and minimal paperwork. The loan’s interest rate is attractive and affordable to ensure the repayment doesn’t create a financial burden. You can apply for the loan online or offline by visiting IIFL Finance nearest branch and verifying your KYC details.


Q.1: How much time does it take to approve the IIFL Finance loan for the construction business?
Ans: IIFL Finance approves business loans within 30 minutes of application. Once approved, you will receive the loan amount in your bank account within 48 hours.

Q.2: What is the loan tenure for IIFL Finance loan for the construction business?
Ans: The loan tenure for an IIFL business loan up to Rs 30 lakh is five years.

Q.3: What are the various loans offered by IIFL Finance for starting a construction business?
Ans: The loans offered include Term loans, Construction equipment loans, Equipment Finance, Working capital loans, and Lines of credit.

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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