One of the most profitable businesses in India is the construction business.  India is a nation that continues to grow towards the development, and construction is happening significantly in the today’s era. While this has led to an increasing demand of construction companies in India. Its prime responsibility is to build residential accommodations and other civil constructions, both for the private and the public sector. However, like every other company, starting a construction company will require a lot of documentation and licenses. There is also added the headache about financing the company. Business loan, MUDRA loan and MSME loans are essential for such businesses to begin their journey.  

Secondly, Construction business owners should ideally sit back and first analyze strategically regarding all challenges and the hurdles that come across while carrying out the business. To make all of it, less complicated, we need to primarily some of the very important steps to initiate with a construction company in India. 

Let us look at how to start a construction business in India. 

Business Plan 

It is important that you plan before you jump in. There are many things to be looked at, at the planning stage. The trend of the construction industry, the revenue channels, the skill set required staffing the company and a million things more. But more importantly, the channel through which the finance is to come for helping to build the company from scratch. 

A business plan is a ready reckoner for the promoters of the company. Without this business plan, the entire premise of building the company will fall flat. It is pertinent to know that the construction business in the country is highly regulated and there are quite a few rules and regulations that need to be followed. To understand the nuances of these legalities, a professional team of legal specialists will be needed. Human resources will have to play an important part here. They will be recruiting the best and the brightest at a budget that the company can afford. Finally, the role of the business development unit cannot be understated. This unit is responsible to keep the pipeline of businesses flowing. Any obstacle there and the whole company might find itself in jeopardy. 


Once the business plan is ready, the next step will be to opt for financing. A business loan is important for every business. Without one, it becomes difficult for any organisation to finance their operations. Financial organisations have different kinds of loans for these companies. These may range from loans for the working capital to fund for equipment. There are several government schemes too that assist construction companies tide over the initial hiccups. With the liberalisation of the financial sector, there is intense competition between lenders. This has benefitted the consumer. They now do have a vast choice to select from. There is also a competition to provide loans at the most attractive rates and with features that will benefit the applicant. Once the finance channel has been decided, it is now easy for the promoters to begin their quest of setting up their long-cherished construction company. 


Ensuring the company against the many unknown challenges is a must for the promoters. This is especially applicable for construction companies who deal with equipment and materials which have the potential of harming workers, if not properly handled. There is also insurance against the sudden downturn in business. A project may go bad and the company ends up incurring a huge loss. With insurance, this too can be covered. The construction industry is one of the true reflectors of the state of the economy. A slowdown in the industry also indicates a slowdown in the economy and vice versa. To guard against such eventualities, the company must insure itself.  

Business Development 

Now that all the bases are covered, the business development department kicks in by scouring the market for projects. This is also the period where the company would need financing to market itself. A business loan would be immensely handy to help them from the sales and marketing point of view.

Author's Bio: 

Ashwini is an experienced and knowledgeable financial advisor, ready to work with you to ensure you and your business future. He also emphasizes the need to adjust investment plans as your goals and needs change.