Real Estate is “Real Property” such as Land and things attached to the land, it is said that value of land never decreases and significant returns can be generated in the long terms and treated as one of the safest investment to do. Real Estate also includes things attached to the land such as trees, water, mineral, bridges, homes. Real Estate also gives real sense and satisfaction to owner of property as we see real value.
In this article we will discuss about the real estate company registration where you can buy, hold and sale properties as stock in trade as such or by making any upgrades likes construction of residential and commercial real estate projects, If we consider and see the Indian Market there is still major population in India lives in villages and there is less job opportunities as compared to major cities, access to greater facilities and so many other benefits , people tend to shift to cities where these facilities are available.
The Major revenue source for real estate company is income from sale of stock of real estate property or rental income from real estate property.
How to Start Real Estate Business in India
To Starting out real estate business you will need to choose the business stracture in India under which you want to do business , following business stracutres under which business of real estate can be carried out :
- Proprietorship / Individual
- LLP ( Limited Liability Partnership)
- Private Limited Company
- Public Limited Company
As you can do business in any of the above business structures , Private Limited Company is the Most popular business entity in India as most of real estate businesses are registered as private limited company , registration as private limited gives benefit of limited liability to owners and sense of confidence to customers as it is highly regulated under the provisions of Companies act and Details relating of Directors and shareholders are easily available on MCA21 website by payment Rs100 fee , with this information customer’s can exercise some due diligence as well.
Below we will discuss about the real estate business registration as private limited company, what are the main requirements for registration, documents required for registration, Capital requirements and RERA
Real Estate business registration as Private Limited Company in India
Minimum requirements for real estate company registration :
- Minimum 2 Directors are required
- Minimum 2 Shareholders are required , both Director and shareholders can also be same persons
- No Minimum Capital requirement for registration of Company
- Name of Company should be unique, there should not be any Company, LLP or Trademark in class of real estate should be registered in the name of proposed company
- Ownership of Company will be based on No of Shares held
- Company should have Registered office address in India
Documents required for Real Estate Company Registration:
- PAN of Directors and Shareholders
- Aadhar of Directors and Shareholders
- Bank Statement or utility bill in the name of Applicant ( not older than 2 months )
- Email id
- Mobile Number
- Video for Digital Signature verification
Object clause of Memorandum of Association of Real Estate Company registration
To purchase any land, plot(s) of land or immovable property or any right or interest therein either singly or jointly or in Partnership with any person(s) or Body corporate or partnership Firm and to develop and construct thereon residential, commercial complex or complex(es) either singly or jointly or in partnership as aforesaid, comprising offices for sale or self use or for earning rental income thereon by letting out individual units comprised in such building(s).
To purchase any movable or immovable property including industrial,commercial, residential, or farm lands, plots, buildings, houses, apartments, flats or areas within or outside the limits of Municipal Corporation or other local bodies, anywhere within the Domain of India, to divide the same into suitable plots, and to rent or sell the plots for building/constructing residential houses,bungalows, business premises, and colonies and rent or sell the same and realize cost in lumpsum or easy installments or by hire purchase system and otherwise.
To purchase, sell and otherwise to carry on the business such as builders, contractors, architects, engineers, Estate agents, decorators and surveyors.
To purchase for resale and to trade in land and house and other immoveable property of any tenure and any interest therein, and to create, sell and deal in freehold and leasehold ground rents, and to deal in trade by way of sale, or otherwise with land and house property and any other immovable property whether real or personal.
To construct, execute, carryout, equip, support maintain, operate, improve, work,develop, administer, manage, control and superintend within or outside the country any where in the world all kinds of works, public or otherwise, buildings, houses and other constructions or conveniences of all kinds, which expression in this memorandum includes roads, railways, and tramways, docks, harbours, Piers, wharves, canals, serial runways and hangers, airports, reservoirs, embankments, irritations, reclamation, improvements, sewage, sanitary, water, gas, electronic light, power supply works, and hotels, cold storages, warehouses, cinema houses, markets, public and other buildings and all other works and conveniences of public or private utility, to apply for purchase or otherwise acquire any contracts,decrease, concessions, for or in relation to the construction, execution, carrying out equipment, improvement, administration, or control of all such works and conveniences as aforesaid and to undertake, execute, carry out, dispose of or otherwise turn to account the same.
Capital Requirement for Real Estate Company registration
As per the Provisions of Companies Act, there is no minimum Capital requirement to carry on business, but as you see real estate business is capital incentive based business and you need high amount of capital as per your requirement, but initially you can start company with less amount and in future as per the requirements of business you can infuse capital in the company, It is important to note that you can either fund capital in your business in the form of equity , preference capital or in the form Debt capital or combinations of these.
RERA Registration for Real Estate Company
There are mainly two types of Registration that Real Estate Company will require under the provisions of RERA
- Real Estate Project Registration
- Agent Registration
In RERA Project Registration , every Real Estate project developed or to be developed by Real Estate Company will require registration under the provisions of RERA Act, RERA registration will be as per the laws of different states on Real Estate Projects
Agents acting as Brokers or property dealers require registration under the provisions of different state laws of RERA , if the Real Estate Company is dealing in such activates, then company must obtain such registration with respective authority .
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