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GST Compensation Cess: A Comprehensive Guide
07 Jul, 2025
By Online Legal India
Published On 03 Sep 2022
Updated On 26 Jun 2025
Category Company Registration
Launching a real estate business in India is more than just a business decision. It is about building trust, safeguarding investments, and seizing market opportunities. A well-registered real estate company not only meets all legal requirements, but it also sets the stage for lasting credibility, transparency, and growth. In this article that follows, we will walk you through how to register a real estate company, choosing the right business structure, securing key registrations like RERA, obtaining essential licenses, and navigating post-registration steps.
Choosing the right legal structure is one of the first and most important steps in starting your real estate business in India. Each structure comes with its own set of benefits and limitations, especially in terms of compliance, investment, and liability. Here is a simple breakdown of the most common options:
A Private Limited Company is a popular choice in India. It must have at least 2 directors and 2 shareholders, and can include up to 200 shareholders. Importantly, there is no mandatory minimum paid-up capital following the 2015 amendments to the Companies Act.
This structure provides limited liability, meaning your assets are protected if the business faces debts or legal issues. It is treated as a separate legal entity, offering professionalism and trustworthiness ideal for real estate projects.
LLP requires at least 2 partners and offers limited liability protection, while remaining a separate legal identity. It is flexible to manage, doesn’t require an audit unless annual turnover or contributions exceed prescribed limits, and is easier to run than a company. However, it cannot issue equity shares, which limits its fundraising options.
A Partnership Firm allows profits and responsibilities to be shared among partners and is easy to form under the Indian Partnership Act of 1932. Yet, all partners have unlimited liability, which means personal assets are at risk for business liabilities.
Sole Proprietorship is the simplest form a single individual handles the business, enjoys full control, and faces minimal compliance. However, there is unlimited liability, and the business lacks a separate legal identity, which may restrict growth and credibility.
Here is the list of documents required for real estate company registration
1. Private Limited Company (Real Estate)
Documents required:
2. Limited Liability Partnership (LLP)
Documents required:
3. One Person Company (OPC)
Documents required:
4. Partnership Firm
Documents required:
5. Sole Proprietorship
Documents required:
A real estate company in India offers legal recognition, financial credibility, and a structured growth path. This guide helps you confidently navigate the essential steps
Step?1: Obtain DSC & DIN
Make sure each proposed director gets a Class III Digital Signature Certificate to sign forms online. Next, apply for Director Identification Numbers either separately via DIR-3 or included automatically when using the SPICe+ form.
Step?2: Reserve Your Company Name
Choose a unique name for your real estate company and reserve it using either the Reserve Unique Name service or SPICe+ Part A. Once approved, the name stays reserved for 20 days, with an optional extension available.
Step?3: Draft MoA & AoA
Prepare the Memorandum of Association (MoA) that defines the purpose and objectives of your company, and the Articles of Association (AoA), which outline how your company will be managed internally.
Step?4: File SPICe+ Part?B on the MCA Portal
Once your name is reserved, complete the SPICe+ Part B (INC?32) form. This includes company details, director information, MoA/AoA, and applications for PAN, TAN, GST, EPFO, ESIC, and bank account setup, all in one streamlined filing.
Step?5: Pay Fees & Stamp Duty
After filing Part B, pay the required government fees and state-specific stamp duty online. These vary depending on the company’s authorized capital and your state.
Step?6: Receive Certificate?of Incorporation
Once everything is approved, the MCA will issue your Certificate of Incorporation (CoI), confirming the legal registration of your company and providing a Corporate Identity Number (CIN).
The process may vary according to the structure of the business.
Under India’s Real Estate (Regulation and Development) Act (RERA) 2016, every real estate promoter must register each project with the relevant State RERA authority before advertising, selling, or booking any units. This registration requires submitting basic project details, like plans, approvals, financial structures, and builder credentials, along with a registration fee set by each state. Authorities typically issue registration within 30 days, and it remains valid until the project’s scheduled completion. You must also renew it if there are delays.
For real estate agents, RERA mandates a separate registration to operate legally. Agents must provide their personal information, fee payment, and a government ID.
Non-compliance with RERA, such as not registering a project or agent, or failing to follow RERA orders, can result in heavy penalties. Promoters may face fines up to 10% of the project’s estimated cost, and non-compliance with adjudications can also lead to imprisonment for up to three years or additional fines. Agents can incur daily fines, such as Rs.10,000 per day, up to 5% of project costs, along with possible jail time.
Ensuring completion of key post-incorporation registrations helps your real estate company operate smoothly, maintain compliance, and build credibility in the market. Here is what you generally need to complete:
Once your company starts transacting, especially in services or under-construction property, you need to register for GST. If your turnover exceeds Rs.40 lakh and Rs.20 lakh for certain states, or if you deal interstate, GST registration is compulsory. Even below the threshold, it can help claim input tax credit, such as when purchasing building materials or paying professional fees.
Your local municipal corporation or urban body requires a trade license to ensure your operations align with zoning, safety, and local rules. The application typically involves submitting an address proof, NOC, and site layout. Once approved, it is renewed annually.
If you plan to engage in property broking or real estate sales, you must register as a licensed RERA agent. Submit your details, PAN, address, and ID proofs to the State RERA authority and pay the registration fee. This registration is mandatory before legally facilitating sales.
Typically, the process takes around 3 to 4 weeks from start to finish. This includes obtaining DSC/DIN in 2–3 days, name reservation 2–5 days, drafting documents, SPICe+ filing, ROC review, and issuance of your Certificate of Incorporation, smooth sailing if your paperwork is in order.
Costs generally fall between Rs.25,000 and Rs.60,000. Here is a breakdown:
Here are some common pitfalls to avoid when registering and running a real estate company in India. Follow these tips to ensure a smooth setup and compliant operations:
Many entrepreneurs pick a popular structure without aligning it to their goals. Choose between Private Ltd, LLP, OPC, or Partnership based on your scale, funding needs, and liability comfort. The right structure sets the tone for future growth and compliance.
Selecting a unique name isn’t just cosmetic, it is legally necessary. Avoid names similar to existing companies or trademarks. Use the RUN tool and perform a trademark check before locking in your company name to prevent rejection or legal disputes.
Mistakes in ID proofs, address proofs, MoA/AoA, or inconsistent information across documents can delay your registration. Double-check that every document, especially DSC and DIN applications, is correctly filled and consistent.
After incorporation, don’t ignore mandatory registrations like GST, municipal trade licenses, or RERA registration for agents and projects. Failure to comply can lead to penalties or stop your operations.
Promoters must register projects and agents before marketing or booking. Failing to do so can result in penalties up to 10% of project cost, daily fines, or even imprisonment under Sections 59 and 60 of RERA. Agents can face Rs.10,000 per day fines plus a percentage of project value for default.
Neglecting GST/TAN/PAN registration, RO filings, or labour compliance can lead to large penalties and disrupt operations. Schedule your filings early and stay ahead with professional help.
While DIY registrations are possible, legal and tax technicalities often trip users. Hiring a CA, CS, or legal advisor may save you from costly mistakes, reduce time, and provide ongoing compliance support.
There are various benefits of real estate company registration that are mentioned below:
Your company becomes a distinct legal body, and your assets are protected if things go wrong. This legal separation offers founders peace of mind and financial safety.
A registered company gains instant credibility in the eyes of buyers, investors, lenders, and suppliers. This trust makes it easier to form partnerships and secure financing.
Banks, venture capitalists, and private investors are more willing to fund a registered entity. It also allows you to raise capital by issuing equity or debt instruments.
Registered businesses can access lower corporate tax rates, input tax credits, and exemptions under schemes like Startup India or MSME/Udyam, improving profitability.
Being a legal entity allows your company to independently buy, hold, or transfer property, simplifying real estate operations and reducing legal complications.
Transferring ownership is as simple as exchanging shares. You can bring in or exit investors without disrupting business operations.
Regulators prefer registered companies that can participate in government tenders, bid on large contracts, and expand interstate or overseas with fewer hurdles.
A registered entity helps safeguard your company name, logo, and brand identity, preventing misuse by competitors.
A registered real estate company can independently acquire, hold, or transfer property, simplifying asset management and reducing legal complexities.
Conclusion
In this article, you have learned how to register a real estate company. Registering a real estate company in India is the smart foundation for credibility, compliance, and sustained growth. From creating a legal structure and completing incorporation to GST, RERA, and trade registrations, each step strengthens your business and enhances trust.
Online Legal India makes this journey effortless. With their expert CAs and CSs, they take care of company registration, GST filing, RERA compliance, and more. This allows you to focus on what matters and build your real estate success.
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