Today in this guide we let you know about to Starting a Real Estate Business or Company in India. The Indian real estate market in India is expected to Reach INR 180 crores by 2020 and making it very profitable to start a real estate business in India.The Indian real estate market is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 percent to the country’s Gross Domestic Product (GDP).
In the period FY2008-2020, the market size of this sector is expected to increase at a Compound Annual Growth Rate (CAGR) of 11.2 percent. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.
A total of 2,17,900 new houses in six Indian states were sanctioned by the Ministry of Housing and Urban Affairs, Government of India under the Pradhan Mantri Awas Yojana (Urban) (MAY) to push affordable housing in the urban areas of the country.
The private equity investments in real estate increased 26 percent to a nine-year high of nearly Rs 40,000 crore (US$ 6.01 billion) in 2016.
After reading the above information you must have made up your mind regarding Starting your own Real Estate Business In India. So In this article, we will tell you all the details that you need to know before getting into the Real Estate Business In India.
How To Start A Real Estate Business In India
So if you are considering to open a real estate business you must consider that Starting a real estate business requires a lot of work, training and time, also you need to Determine what type of real estate brokerage you want to open.
- Whether you want to specialize in selling commercial properties or residential properties or domestic real estate or international real estate or you want to open a firm that is a combination of all these factors.
- you need to carefully Assess market demand for your services i.e you need to know does local requires your services, who are your competitors, the situation of real estate market and Determine whether your business could be profitable.
- you need to also have good knowledge of laws prevailing in India regarding real estate in India as the laws vary in each state differently, starting a real estate business is normally a three-step process that can take at least two years.
- Before starting your own company, you need to become a licensed real estate broker, and before becoming a broker, you must be a licensed sales agent or The easiest way to get into real estate business is to become an assistant to a famous real estate agent or broker or open a partnership firm.
- After when you have obtained all necessary licensing. You need draft a business plan that will include targeting customer groups, competitive pricing, accurate sales forecasts, market analysis and thorough marketing strategies, Estimate how capital you’ll need to run the business, Get a bank loan, set up a business, advertise your services and create a network of people working in real estate business.
Registration Procedure In India For Real Estate Business.
1) Getting Real Estate Agent license :
These days state government is making it mandatory to have real estate agent license to run this kind of business. Generally Deputy commissioner of district issue this license. For application check with nearest sub register office/municipal corporation.Fees vary from state to state.Generally, the fee for the property dealer license is Rs. 25, 000 for the individual and for company or society the fees is Rs. 50,000.
2) Real Estate Company Registration :
- You should have firm decisions regarding Which company to register like Private Limited, LLP, Partnership Firm or One Person company
- Search for the Company Name to see If the company already exist or not.
- Trademark Registration application needs to be filed to register a company name.
- Drafting of Memorandum of Association (MOA) & Articles of Association (AOA).
- Filing of e-forms with RoC (Registrar of Companies).
- Payment of RoC Fees & Stamp Duty.
- Verification of documents/forms by RoC.
- The issue of Certificate of Incorporation by RoC.
3) GST Registration for Real Estate Company
Services Given by the Real Estate Business is taxable under GST Law, So you should get GST Registration done under GST Act to avoid any penalty that may arise due to in compliance to GST.
Starting a real estate business in India can be very hectic and very time-consuming process. Sometimes it also creates a situation of complication to get your business from papers to actual reality. You may Require help of good CA or Legal advisor in a matter of company registration, GST Registration, Therefore It is highly recommended to seek professional help. If you require any help Do Check our Website today!